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 individuals and jobs, and a simple sorting mechanism that...