Behar, Alberto; Mok, Junghwan - International Monetary Fund (IMF) - 2013
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 …