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Labour Market Flows: Accounting for the Public Sector

Author

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  • Fontaine, Idriss

    () (Université de la Réunion)

  • Galvez-Iniesta, Ismael

    () (Universidad Carlos III de Madrid)

  • Gomes, Pedro Maia

    () (Birkbeck, University of London)

  • Vila-Martin, Diego

    () (University of Amsterdam)

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 & Galvez-Iniesta, Ismael & Gomes, Pedro Maia & Vila-Martin, Diego, 2019. "Labour Market Flows: Accounting for the Public Sector," IZA Discussion Papers 12579, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12579
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    References listed on IDEAS

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    Cited by:

    1. Andri Chassamboulli & Pedro Gomes, 2019. "Jumping the Queue: Nepotism and Public-Sector Pay," University of Cyprus Working Papers in Economics 08-2019, University of Cyprus Department of Economics.
    2. 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.

    More about this item

    Keywords

    job-separation rate; job-finding rate; worker gross flows; public sector; public-sector employment;

    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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