This article analyses the impact of public employment creation on private sector employment and unemployement. In a macroeconomic approach, the first section focuses on the crowding out effects of public jobs creation on private jobs creation. The effect is found to be large and significant by...

Unemployment compensation schemes have two goals: insuring against the risk of unemployment on the one hand, and financing job search on the other hand. During the past decades, the literature has mainly focused on the first goal, highlighting the moral hazard effects originated by unemployment...