Garibaldi, Pietro; Gomes, Pedro; Sopraseuth, Thepthida - In: Journal of government and economics : JGE 1 (2021), pp. 1-32
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 …. We find that the public-sector wage differential and excess underemployment account for 15 percent of the education bias …