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...

The historical context of the public sector culture -- Privatization, corporatization, bureaucracies, and change -- Perspectives on institutional theory -- Hope, frustration, and despair-some reflections -- Psychological contract, organizational citizenship, and double bind -- Stress and coping...