Abstract

We study targeted redistribution by appointed state cabinet members (ministers) in Germany. Matching data on state ministers’ place of residence and state government employment data for the universe of western German municipalities for 1994–2013, we show within a difference-in-differences framework that municipalities that are the residence of a minister experience a higher annual growth rate in state government employment if they retain this status for more than one legislative term. Thus, our results suggest that appointed cabinet members engage in hometown favoritism. We discuss several potential mechanisms for this behavior.

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