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Why Won’t Workers Do Their Jobs? Labor Market Rigidity and Job Performance in the Public Sector

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Abstract

We test the link between labor market rigidities and job performance in the public sector using a novel outcome variable namely, the number of days that it takes to the postal service to return letters sent to non-existent foreign addresses, a measure that we argue is an excellent proxy for job performance. We find a positive and statistically significant link between these two variables, regardless of the labor rigidity measure employed, changes in specification, and even unlikely endogeneity considerations, which suggest that this finding may be causal.

Suggested Citation

  • Alberto Chong & Angelo Cozzubo, 2017. "Why Won’t Workers Do Their Jobs? Labor Market Rigidity and Job Performance in the Public Sector," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1703, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1703
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    File URL: http://icepp.gsu.edu/files/2017/03/icepp1703.pdf
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    1. Juan C. Botero & Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1339-1382.
    2. Campos, Nauro F. & Nugent, Jeffrey B., 2012. "The Dynamics of the Regulation of Labor in Developing and Developed Countries since 1960," IZA Discussion Papers 6881, Institute of Labor Economics (IZA).
    3. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
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    Cited by:

    1. Setyabudi INDARTONO & Nahiyah Jaidi FARAZ, 2019. "The Role Of Commitment On The Effect Of Public Workers’ Ocbo On In-Role Performance," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(32), pages 108-119, June.

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