Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-section of developing and advanced countries, and discuss the implications for countries in the Middle East, North Africa, Caucasus and Central Asia. The...

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Bibliographic Details
Main Author: Behar, Alberto
Other Authors: Mok, Junghwan
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Sovereign Debt 
653 |a Economic theory 
653 |a Labour 
653 |a Aggregate Labor Productivity 
653 |a Government debt management 
653 |a Public finance & taxation 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Labor Demand 
653 |a Debts, Public 
653 |a Unemployment 
653 |a Wages 
653 |a Labor 
653 |a Mobility, Unemployment, and Vacancies: General 
653 |a Public financial management (PFM) 
653 |a Public Finance 
653 |a Public employment 
653 |a Debt 
653 |a Employment 
653 |a Income economics 
653 |a Intergenerational Income Distribution 
653 |a Employment rate 
653 |a Debt Management 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Mobility, Unemployment, and Vacancies: Public Policy 
653 |a National Government Expenditures and Related Policies: Other 
653 |a Aggregate Human Capital 
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520 |a We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-section of developing and advanced countries, and discuss the implications for countries in the Middle East, North Africa, Caucasus and Central Asia. These countries simultaneously display high unemployment rates, low private-sector employment rates and high proportions of government-sector employment. Regressions of either private-sector employment rates or unemployment rates on two measures of public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, have a large negative impact on private employment rates and do not reduce overall unemployment rates