Government Employment and Wages and Labor Market Performance
Author | : Mr.Dimitri G. Demekas |
Publisher | : International Monetary Fund |
Total Pages | : 30 |
Release | : 1999-04-01 |
ISBN-10 | : 9781451847604 |
ISBN-13 | : 1451847602 |
Rating | : 4/5 (602 Downloads) |
Download or read book Government Employment and Wages and Labor Market Performance written by Mr.Dimitri G. Demekas and published by International Monetary Fund. This book was released on 1999-04-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Government wage, benefit, and employment decisions are not taken on a profit-maximizing basis and have a substantial impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor, an increase in government wages or benefits reduces private sector employment, and government employment is not an effective counter-cyclical instrument. Empirical tests for Greece confirm that the expansion of the public sector in the 1980s contributed to the deterioration of labor market performance.