Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?
AbstractWe 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.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 13/146.
Date of creation: 12 Jun 2013
Date of revision:
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Postal: International Monetary Fund, Washington, DC USA
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-ARA-2013-09-26 (MENA - Middle East & North Africa)
- NEP-LAB-2013-09-26 (Labour Economics)
- NEP-PBE-2013-09-26 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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