Wage Expenditures of Central Governments

42 Pages Posted: 15 Feb 2006

See all articles by Daniel Hewitt

Daniel Hewitt

affiliation not provided to SSRN

Caroline Van Rijckeghem

Istanbul Analytics

Date Written: January 1995

Abstract

Central government wage expenditures accounted for 7 percent of GDP in 99 countries during 1980-90 (unweighted average). Regression analysis indicates that federations, countries with high populations and high per capita incomes, heavily indebted countries, and small low-income economies tend to have lower central government wage expenditures as a percent of GDP. Access to private nonguaranteed foreign financing is associated with higher wage expenditures, while public and publicly guaranteed foreign financing is not; the public and publicly guaranteed foreign financing is often provided for government capital projects. Medium-term structural adjustment programs, on average, have a negative association with wage expenditures, while short-term stabilization programs do not. The negative correlation between central government wage expenditures and per capita income appears related to the level of centralization of government expenditures. General government wage expenditures are higher in industrial countries than in developing countries.

JEL Classification: H5, H7

Suggested Citation

Hewitt, Daniel and Van Rijckeghem, Caroline, Wage Expenditures of Central Governments (January 1995). IMF Working Paper, Vol. , pp. 1-42, 1995. Available at SSRN: https://ssrn.com/abstract=883161

Daniel Hewitt (Contact Author)

affiliation not provided to SSRN

No Address Available

Caroline Van Rijckeghem

Istanbul Analytics ( email )

Istanbul
Turkey

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