Does Public-Sector Employment Fully Crowd Out Private-Sector Employment? / Alberto Behar, Junghwan Mok.

Format:

Book

Government document

Author/Creator:

Behar, Alberto.

Contributor:

Mok, Junghwan.

Series:

IMF Working Papers; Working Paper ; No. 2013/146

IMF Working Papers

Language:

English

Subjects (All):

Labor market.

Civil service.

Physical Description:

1 online resource (39 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-section of developing and advanced countries, and discuss the implications for countries in the Middle East, North Africa, Caucasus and Central Asia. These countries simultaneously display high unemployment rates, low private-sector employment rates and high proportions of government-sector employment. Regressions of either private-sector employment rates or unemployment rates on two measures of public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, have a large negative impact on private employment rates and do not reduce overall unemployment rates.

Contents:

Cover; Contents; I. Introduction; II. Literature Review; III. Data Sources; IV. Descriptive Analysis; Figures; Figure 1: Overview of Key Labor Statistics, 2008-2011 average; Figure 2: Unemployment Rate, weighted by labor force; Figure 3: Private-Sector Employment Rate; Figure 4: The Importance of Public-Sector Employment, 2008-2011 average; Figure 5: Proportion of Public Employment in the MCD countries, latest year; Tables; Table 1: Public and Private Employment in the MCD Countries; Figure 6: Unemployment and Public Employment, 2006-11 average

Figure 7: Correlation between Public- and Private-Sector Employment, 2006-11 averageV. Econometric Analysis; A. Specification and Estimation; B. Unemployment and Public Employment; C. Private-Sector Employment and Public Employment; Table 2: Regression of Unemployment Rate on Public Employment Rate; Table 3: Regression of Private-Sector Employment Rate on Public Employment Rate; D. MCD Analysis; E. Implications for Labor Force Participation; Table 4: Regression with MCD Region Interaction Terms; VI. Conclusion; References; Appendix I. Regressions of Unemployment Rate on Public Employment

TablesTable A.1: Impact of Public Employment on Unemployment Rate, FE with AR(1); Table A.2: Impact of Public Employment on Unemployment Rate, RE; Table A.3: Impact of Public Employment on Unemployment Rate, RE with AR(1); Table A.4: Impact of Public Employment on Unemployment Rate, Systems GMM; Appendix II. Regressions of Private-Sector Employment on Public Employment; Table A.5: Impact of Public on Private-Sector Employment Rate, FE with AR(1); Table A.6: Impact of Public on Private-Sector Employment Rate, RE; Table A.7: Impact of Public on Private-sector Employment Rate, RE with AR(1)

Table A.8: Impact of Public on Private-Sector Employment Rate, System GMMAppendix III. Regression with MCD Interaction Terms and Controls; Table A.9: Regression of Unemployment Rate with the MCD Region Interaction Terms; Table A.10: Regression of Private-sector Employment Rate with the MCD Region Interaction Terms

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on print version record.

ISBN:

9781484331408

1484331400

9781484345290

1484345290

9781484383421

1484383427