In this paper we use a simple model to analyze the forces which determine the size of the public sector and the quality of workers employed in that sector. Workers are heterogeneous, and the public sector chooses an employment strategy which maximizes a social welfare function $U(s,Y)$ which...

We compare three approaches to linking macro models with representative households and micro household income data in terms of their implications for measuring the poverty and distributional effects of poverty reduction strategies. These approaches are a simple micro- accounting method, an...