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Public Employment and Labor Market Performance

Par : Contributeur(s) : Type de matériel : TexteTexteLangue : français Détails de publication : 2002. Ressources en ligne : Abrégé : This paper deals with the consequence of public employment on labor market performances in 17 OECD countries over the period 1960-2000. Empirical evidence suggests that the creation of one public job destroyed about 1,5 private job, sightly decreased participation to the labor market and eventually increased the number of unemployed workers by 0,3. It is also suggested that the crowding out effect of public jobs on private jobs is more important in countries in which public production is highly substitutable to private activities and in which the public sector provides high rents. Classification JEL: H11, H40, H50, J21, J45
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This paper deals with the consequence of public employment on labor market performances in 17 OECD countries over the period 1960-2000. Empirical evidence suggests that the creation of one public job destroyed about 1,5 private job, sightly decreased participation to the labor market and eventually increased the number of unemployed workers by 0,3. It is also suggested that the crowding out effect of public jobs on private jobs is more important in countries in which public production is highly substitutable to private activities and in which the public sector provides high rents. Classification JEL: H11, H40, H50, J21, J45

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