Staff, Functions, and Staff Costs at Central Banks: an International Comparison with a Labor- Demand Model
AbstractDuring the period 2000-2004 central banks sustained a generalized reduction in their staff, which was accompanied, in most cases, with significant increases in staff costs. This could obey to an enhanced interest of central banks in focusing on their core functions. In fact, central banks have changed the ways they perform their operative functions (e.g. currency operations, payment systems operation, printing notes, etc.) through different strategies aimed at gathering the participation of third parties. These strategies differ according to the relationship that central banks have with the financial sector and the government, as well as to their historical tradition and modernization trend. To explain the effect of these changes on the staff, we estimated a short-term labor demand function for 66 central banks using a panel data model with random effects. Results indicate that central banksâ labor demand is strongly determined by the countryâs population, economic development level and changes in operative functions, as well as by staff costs. In addition, we found a low employment-wage elasticity suggesting the presence of a flexible budgetary constrain in central banks.
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Bibliographic InfoArticle provided by Centro de Estudios Monetarios Latinoamericanos in its journal Money Affairs.
Volume (Year): XX (2007)
Issue (Month): 2 (July-December)
Other versions of this item:
- Jorge Galán Camacho & Miguel Sarmiento Paipilla, . "Staff, Functions, and Staff Costs at Central Banks: An International Comparison with a Labor-demand Model," Borradores de Economia 419, Banco de la Republica de Colombia.
- Jorge Galán Camacho & Miguel Sarmiento, 2006. "Staff, Functions, and Staff Costs at Central Banks: An International Comparison with a Labor-demand Model," BORRADORES DE ECONOMIA 003524, BANCO DE LA REPÚBLICA.
- Ran - Urban, Rural, Regional, Real Estate, and Transportation Economics - - - - -
- Eff - Macroeconomics and Monetary Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
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