Incentives to Work and Performance in the Public Sector

39 Pages Posted: 5 Feb 2015

See all articles by George Economides

George Economides

Athens University of Economics and Business - Department of International and European Economic Studies

Apostolis Philippopoulos

Athens University of Economics and Business - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); University of Essex

Petros Varthalitis

Athens University of Economics and Business

Date Written: January 31, 2015

Abstract

This paper develops a dynamic general equilibrium model with three distinct social groups, capitalists, private workers and public employees. After solving for the status quo equilibrium, which can mimic the advantages of employment in the public sector in most EU countries, the paper looks for policy reforms that can improve work incentives, and hence enhance productive efficiency, in the public sector. We focus on reforms aiming to establish parity between work conditions in the public and the private sector.

Keywords: dynamic general equilibrium models, efficiency, equity, employment, incentives

JEL Classification: D580

Suggested Citation

Economides, George and Philippopoulos, Apostolis and Varthalitis, Petros, Incentives to Work and Performance in the Public Sector (January 31, 2015). CESifo Working Paper Series No. 5193, Available at SSRN: https://ssrn.com/abstract=2560756 or http://dx.doi.org/10.2139/ssrn.2560756

George Economides (Contact Author)

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

GR-10434 Athens
Greece
+30-210-8214122 (Phone)
+30-210-8203729 (Fax)

Apostolis Philippopoulos

Athens University of Economics and Business - Department of Economics ( email )

76 Patission Street
GR-10434 Athens
Greece
+301 322 3187 (Phone)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Petros Varthalitis

Athens University of Economics and Business ( email )

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