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The public sector hires disproportionately more educated workers. To rationalize this finding, we propose a model with a perfectly competitive private sector, and non-Walrasian public sector. Our economy also features heterogeneity across individuals and jobs, and a simple sorting mechanism that...
Persistent link: https://www.econbiz.de/10012803194
the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers … it. Hiring more people can increase or decrease the unemployment rate. All shocks raise the wage and crowd out employment …
Persistent link: https://www.econbiz.de/10009302182
the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers … it. Hiring more people can increase or decrease the unemployment rate. All shocks raise the wage and crowd out employment …
Persistent link: https://www.econbiz.de/10013135824
private sector would lower the unemployment rate and reduce government costs. …
Persistent link: https://www.econbiz.de/10012184057
as nepotism in hiring in the public sector, on unemployment and rent seeking. Conditional on inefficiently high public …-sector wages, more nepotism in public-sector hiring lowers the unemployment rate because it limits the size of queues for public …
Persistent link: https://www.econbiz.de/10012194928
wage policies in the public sector on unemployment and education decisions. The effects on the educational composition of …
Persistent link: https://www.econbiz.de/10014230176
We estimate a structural model of job assignment in the presence of coordination frictions due to Shimer (2005). The coordination friction model places restrictions on the joint distribution of worker and firm effects from a linear decomposition of log labor earnings. These restrictions permit...
Persistent link: https://www.econbiz.de/10014200366
Most of the existing evidence on the effectiveness of family leave policies comes from studies focusing on their impacts on affected families - that is, mothers, fathers, and their children - without a clear understanding of the costs and effects on firms and coworkers. We use data from Denmark...
Persistent link: https://www.econbiz.de/10012153290
Persistent link: https://www.econbiz.de/10012041903
Persistent link: https://www.econbiz.de/10011906820