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This article provides an overview of the impact of public sector pay and employment cutbacks in EU countries and discusses their justifi cation as part of austerity packages. It begins with the outcomes in the countries first hit by the economic crisis before discussing the impact of the crisis...
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observability, we investigate the impact of the low and/or declining real government wages on incentives to work and on corruption …. We show that public sector output (revenue collection in the paper) could improve with higher wages since it alters the … in wages has to be complemented with appropriate monitoring and penalty rates for effective tax administration. The usual …
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This paper presents a model of wage-employment determination in private and public sectors, which allows us to analyze the effects of different institutional arrangements on labor market equilibria. In particular, it focuses on how different degrees of coordination in decision processes affect...
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