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 …

not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters … to maintain their real wages by reducing labor demand still further. Furthermore, we argue inflationary pressures have …

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. …