The wages of regulation

This paper relates the growth of relative wages of government scientists and other federal employees to the growth of regulation during the 1970s. A theoretical model of bureaucracy provides a linkage to data that suggest that rents were generated during the period of analysis and that at least part of those rents were paid to specialized factors in government. The opinions expressed are those of the author and do not necessarily reflect the opinions of the Commission, Commissioners, or staff of the FTC.