IDEAS home Printed from https://ideas.repec.org/a/spr/ecogov/v4y2003i3p215-228.html
   My bibliography  Save this article

Efficiency wages, wage comparison, and public sector budgeting

Author

Listed:
  • Kåre Johansen
  • Bjarne Strøm

Abstract

We develop a government decision model where efficiency wage mechanisms affect the allocation of resources between different public services. We show how the introduction of interdepartment wage relativities modifies the standard Solow wage setting conditions. We compare the outcome under centralised and decentralised wage setting, and show that a decentralised wage setting system creates a distortion. Finally, we discuss the possibility of elimination this distortion using alternative financing systems. Copyright Springer-Verlag Berlin/Heidelberg 2003

Suggested Citation

  • Kåre Johansen & Bjarne Strøm, 2003. "Efficiency wages, wage comparison, and public sector budgeting," Economics of Governance, Springer, vol. 4(3), pages 215-228, November.
    • Handle: RePEc:spr:ecogov:v:4:y:2003:i:3:p:215-228
    DOI: 10.1007/s10101-003-0063-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10101-003-0063-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10101-003-0063-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Torberg Falch, 2001. "Decentralized Public Sector Wage Determination: Wage Curve and Wage Comparison for Norwegian Teachers in the Pre‐WW2 Period," LABOUR, CEIS, vol. 15(3), pages 343-369, September.
    2. Javier Pérez & A. Sánchez, 2011. "Is there a signalling role for public wages? Evidence for the euro area based on macro data," Empirical Economics, Springer, vol. 41(2), pages 421-445, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ecogov:v:4:y:2003:i:3:p:215-228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.