The Impact of Wage-Setting Institutions on the Incidence of Public Employment in the OECD: 1960-98

43 Pages Posted: 21 Oct 2002

See all articles by Lawrence M. Kahn

Lawrence M. Kahn

Cornell University - School of Industrial and Labor Relations; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Date Written: July 2002

Abstract

Using data on 17 OECD countries for 1960-98, this paper studies the impact of unions on public employment incidence, using macrodata and microdata. Macrodata show that greater coverage by centralized collective bargaining institutions raises the public employment share, controlling for country effects and country-specific trends. Microdata show that this effect is more positive for outsiders: women, and younger and older men, suggesting that government is employer of last resort. Greater unionization lowers public sector wage premia, particularly for women, suggesting that some of the public employment results may reflect movements along the labor demand curve rather than conscious policy.

JEL Classification: J58, H11

Suggested Citation

Kahn, Lawrence M., The Impact of Wage-Setting Institutions on the Incidence of Public Employment in the OECD: 1960-98 (July 2002). CESifo Working Paper Series No. 757. Available at SSRN: https://ssrn.com/abstract=340904

Lawrence M. Kahn (Contact Author)

Cornell University - School of Industrial and Labor Relations ( email )

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United States
607-255-0510 (Phone)
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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
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Germany

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