Abstract

http://ssrn.com/abstract=312208
 
 

References (40)



 
 

Citations (25)



 


 



Public Employment and Labour Market Performance


Yann Algan


Universite Paris I Pantheon-Sorbonne - CNRS-EUREQUA; Institute for the Study of Labor (IZA)

Pierre Cahuc


National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA); French National Center for Scientific Research (CNRS); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Andre Zylberberg


National Center for Scientific Research (CNRS)


Economic Policy, Vol. 17, pp. 7-65, 2002

Abstract:     
We explore the consequences of public employment for labour market performance. Theory suggests that public employment may not only crowd out private employment, but also increase overall unemployment if, by offering attractive working conditions, it draws additional individuals into the labour force. Empirical evidence from a sample of OECD countries in the 1960-2000 period suggests that, on average, creation of 100 public jobs may have eliminated about 150 private sector jobs, slightly decreased labour market participation, and increased by about 33 the number of unemployed workers. Theoretical considerations and empirical evidence, however, suggest that the crowding out effect of public jobs on private jobs is only significant in countries where public production is highly substitutable to private activities and the public sector offers more attractive wages and/or other benefits than the private labour market.

Number of Pages in PDF File: 59

Accepted Paper Series





Date posted: December 2, 2002  

Suggested Citation

Algan, Yann and Cahuc, Pierre and Zylberberg, Andre, Public Employment and Labour Market Performance. Economic Policy, Vol. 17, pp. 7-65, 2002. Available at SSRN: http://ssrn.com/abstract=312208

Contact Information

Yann Algan (Contact Author)
Universite Paris I Pantheon-Sorbonne - CNRS-EUREQUA ( email )
106-112 Boulevard de l'Hopital
Paris Cedex 13, 75647
France
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Pierre Cahuc
National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )
92245 Malakoff Cedex
France
University of Paris 1 Pantheon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA) ( email )
106-112 Boulevard de l'Hopital
Paris Cedex 13, 75647
France
+33 1 4117 3717 (Phone)
+33 1 4117 3724 (Fax)
HOME PAGE: http://eurequa.univ-paris1.fr/membres/cahuc/
French National Center for Scientific Research (CNRS)
106-112 Boulevard de l'Hopital
75647 Paris Cedex 13
France
+33 4 44 07 82 06 (Phone)
+33 4 44 07 82 02 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Andre Zylberberg
National Center for Scientific Research (CNRS) ( email )
75013 Paris, 94204
France
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References:  40
Citations:  25

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