Department of Economics, City, University of London
Abstract
This paper investigates the local labor market impact of a UK relocation initiative, the 2004 Lyons Review. The review resulted in the dispersal of about 25,000 civil service jobs out of London and the South East towards other UK destinations. The paper aims to detect whether inflows of public sector jobs have crowded out private sector activity or stimulated the local provision of jobs in the private sector. Focusing on short-term effects, I find that the relocation programme raised private sector employment in the receiving areas and changed the sectoral distribution of local employment towards services and away from manufacturing
