public sector units in 1991. Since then, per capita output has increased significantly, while the overall unemployment rate … unemployment remains stubbornly high, an overwhelming proportion of the labor force continues to work in the informal sector, and …

labor force participation rate, reversing a nearly 50-year trend; the nearly full recovery of unemployment from the depths …

national employment levels. However, economic research suggests that these effects are uncertain and critically depend on how … public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public … wages lead to a stabilizing effect. Public employment also has important productivity and redistributive effects. …

and unemployment showed little sensitivity. Workers have paid the price for this rather stable employment situation in the … underwent substantial structural changes. Major shocks were absorbed largely via wage adjustments, while aggregate employment …

labor force participation rate, reversing a nearly 50-year trend; the full recovery of unemployment from the depths of the …

to regulate the size of the public sector in order to stabilize targeted national employment levels. However, economic … sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect. Public … employment also has important productivity and redistributive effects. …

informal and formal workers, both at the means and along the wage distribution. I use two definitions of informal employment: a …) employment without a written agreement and b) employment while officially registered as unemployed at a labour office. In order … to reduce the bias resulting from the non-random selection of individuals into informal employment, I use a rich set of …