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Wage Policy in the Public Sector and Income Distribution

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  • Sheshinski, Eytan

Abstract

This paper examines the direct and indirect e�ects of a government's wage policy in the public sector on the overall income distribution in the economy. By direct e�ects we mean the wage di�erentials in the public sector. Indirect e�ects refer to the secondary e�ects of the government's policy through changes in the occupational structure. This analysis is based on a simple model suggested by Tinbergen (1951) and Roy (1951), followed by Houthakker (1976). In the numerical calculations, the model yields realistic conclusions which underline the importance of government wage policy.

Suggested Citation

  • Sheshinski, Eytan, 1982. "Wage Policy in the Public Sector and Income Distribution," MPRA Paper 73738, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73738
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    File URL: https://mpra.ub.uni-muenchen.de/73738/1/MPRA_paper_73738.pdf
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    References listed on IDEAS

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    1. H. S. Houthakker, 1974. "The Size Distribution of Labour Incomes Derived from the Distribution of Aptitudes," Palgrave Macmillan Books, in: Willy Sellekaerts (ed.), Econometrics and Economic Theory, chapter 9, pages 177-187, Palgrave Macmillan.
    2. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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    Cited by:

    1. Sheshinski, Eytan, 2016. "A note on income taxation and occupational choice," Research in Economics, Elsevier, vol. 70(1), pages 20-23.

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    JEL classification:

    • H0 - Public Economics - - General

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