IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.48year2014issue4pp309-326.html
   My bibliography  Save this article

Does government employment crowd out private sector employment in sids? the case of Barbados

Author

Listed:
  • Roland Craigwell

    (University of the West Indies, Barbados)

  • Mahalia Jackman

    () (Antilles Economics, Barbados)

Abstract

This paper uses a two-step Markov-switching error correction model to determine the impact of government employment on the labour market in Barbados, a small island developing Caribbean state. The results suggest that there is partial crowding out, as public sector hiring reduces private employment but the net impact of unemployment is negative. These findings hint that there may be some merit in a countercyclical employment policy in SIDS. In addition, the results suggest that the tax and debt expense are two channels through which crowding out can occur.

Suggested Citation

  • Roland Craigwell & Mahalia Jackman, 2014. "Does government employment crowd out private sector employment in sids? the case of Barbados," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(4), pages 309-326, October-D.
  • Handle: RePEc:jda:journl:vol.48:year:2014:issue4:pp:309-326
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.4.craigwell.html
    Download Restriction: no

    More about this item

    Keywords

    Unemployment; government employment; private employment; crowding out; Barbados; SIDS;

    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
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    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:jda:journl:vol.48:year:2014:issue4:pp:309-326. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Abu N.M. Wahid). General contact details of provider: http://edirc.repec.org/data/cbtnsus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.