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Labour market flows: Accounting for the public sector

Author

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  • Fontaine, Idriss
  • Gálvez-Iniesta, Ismael
  • Gomes, Pedro
  • Vila-Martin, Diego

Abstract

For the period between 2003 and 2018, we document a number of facts about worker gross flows in France, the United Kingdom, Spain and the United States, focussing on the role of the public sector. Using the French, Spanish and UK Labour Force Survey and the US Current Population Survey data, we examine the size and cyclicality of the flows and transition probabilities between private and public employment, unemployment and inactivity. We examine the stocks and flows by gender, age and education. We decompose contributions of private and public job-finding and job-separation rates to fluctuations in the unemployment rate. Public-sector employment contributes 20 percent to fluctuations in the unemployment rate in the UK, 15 percent in France and 10 percent in Spain and the US. Private-sector workers would forgo 0.5 to 2.9 percent of their wage to have the same job security as public-sector workers.

Suggested Citation

  • Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro & Vila-Martin, Diego, 2020. "Labour market flows: Accounting for the public sector," Labour Economics, Elsevier, vol. 62(C).
  • Handle: RePEc:eee:labeco:v:62:y:2020:i:c:s092753711930106x
    DOI: 10.1016/j.labeco.2019.101770
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    Cited by:

    1. Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro & Vila-Martin, Diego, 2020. "Labour market flows: Accounting for the public sector," Labour Economics, Elsevier, vol. 62(C).
    2. Chassamboulli, Andri & Fontaine, Idriss & Gomes, Pedro, 2020. "How important are worker gross flows between public and private sector?," Economics Letters, Elsevier, vol. 192(C).
    3. Garibaldi, Pietro & Gomes, Pedro Maia & Sopraseuth, Thepthida, 2019. "Public Employment Redux," IZA Discussion Papers 12871, Institute of Labor Economics (IZA).
    4. Gomes, Pedro Maia & Kuehn, Zoë, 2019. "You’re the One That I Want! Public Employment and Women’s Labor Market Outcomes," IZA Discussion Papers 12702, Institute of Labor Economics (IZA).
    5. Andri Chassamboulli & Pedro Gomes, 2019. "Public-Sector Employment, Wages and Human Capital Accumulation," University of Cyprus Working Papers in Economics 07-2019, University of Cyprus Department of Economics.
    6. Lucas Navarro & Mauricio Tejada, . "Does Public Sector Employment Buffer the Minimum Wage Effects?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
    7. Andri Chassamboulli & Pedro Gomes, 2021. "Jumping the queue: nepotism and public-sector pay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 344-366, January.
    8. Marcén, Miriam & Morales, Marina, 2020. "The intensity of COVID-19 Non-Pharmaceutical Interventions and labor market outcomes in the public sector," GLO Discussion Paper Series 637, Global Labor Organization (GLO).
    9. Andri Chassamboulli & Pedro Gomes, 2021. "Jumping the queue: nepotism and public-sector pay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 344-366, January.
    10. Gomes, Pedro Maia & Wellschmied, Felix, 2020. "Public-Sector Compensation over the Life Cycle," IZA Discussion Papers 13042, Institute of Labor Economics (IZA).
    11. Nalban, Valeriu & Smădu, Andra, 2021. "The interaction between private sector and public sector labor markets: Evidence from Romania," Economic Modelling, Elsevier, vol. 94(C), pages 804-821.

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    More about this item

    Keywords

    Worker gross flows; Job-finding rate; Job-separation rate; Public sector; Public-sector employment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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