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Government Employment and Wages and Labor Market Performance

Government wage, benefit, and employment decisions are not taken on a profit-maximizing basis and have a substantial impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor, an increase in government wages or benefits reduces priv...

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Bibliographic Details
Main Author: Kontolemis, Zenon
Other Authors: Demekas, Dimitri
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1999
Series:IMF Working Papers
Subjects:
Public Sector Wages
Labour
Wages, Compensation, And Labor Costs: General
Unemployment: Models, Duration, Incidence, And Job Search
Unemployment
Labor Markets
Aggregate Labor Productivity
Public Employment
Demand And Supply Of Labor: General
Aggregate Human Capital
Labor
Wage Level And Structure
Models Of Political Processes: Rent-seeking, Elections, Legislatures, And Voting Behavior
Public Sector Labor Markets
Labor Market
Wages
Wage Differentials
Economic Theory
Intergenerational Income Distribution
Income Economics
Employment
Fiscal Policies And Behavior Of Economic Agents: Household
Greece
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Government wage, benefit, and employment decisions are not taken on a profit-maximizing basis and have a substantial impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor, an increase in government wages or benefits reduces private sector employment, and government employment is not an effective counter-cyclical instrument. Empirical tests for Greece confirm that the expansion of the public sector in the 1980s contributed to the deterioration of labor market performance
Physical Description:29 pages
ISBN:9781451847604

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