Motivated by the high public employment, and the public wage premia observed in Europe, a Real-Business-Cycle model, calibrated to German data (1970-2007), is set up with a richer government spending side, and an endogenous private-public sector labor choice. To illustrate the effects of fiscal...

Leistungsabhängige Bezahlung gilt vielen als einer der Schlüssel zur Professionalisierung und Qualitätssicherung im Bereich des öffentlichen Dienstes. Allerdings stellen Konzeption und Umsetzung eines entsprechenden Systems die Verantwortlichen vor vielfältige Fragen: Wie lässt sich...

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...

This paper studies the wasteful effect of bureaucracy on the economy by addressing the link between opportunistic behavior of government bureaucrats and the public sector wage bill. In particular, public officials are modeled as individuals competing for a larger share of those public funds. A...