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Is the Irish public sector a burden?

Author

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  • William K. O'Riordan

Abstract

The data on employment and pay in the public sector in the OECD countries which are contained in Vol. II of the OECD "National Accounts Statistics" are used to compare public sector employment in Ireland with that in the rest of the OECD and to infer its effects on the Irish economy. The period covered is 1970-85. It appears that neither the size nor the growth-rate of public sector emplyment in Ireland is abnormal by OECD standards even when the level of income is taken into account. It llso appears that countries where large numbers are employed in the public do not seem to suffer from higher unemployment, less employment in other sectors or slower growth rates than other countries. The relative pay rates in the public sector in Ireland appear to be unusually high by OECD standards. It would seem, therefore, that if the public sector is a burden in Ireland, it is so, not because it is too big, but because it is too well-paid.

Suggested Citation

  • William K. O'Riordan, 1989. "Is the Irish public sector a burden?," Working Papers 19891PP, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:19891pp
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    File URL: http://hdl.handle.net/10197/1376
    File Function: First version, 1989
    Download Restriction: no
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