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The size of the public sector in terms of employment and compensation has a strong life-cycle dimension. We establish a quantitative partial-equilibrium life-cycle model with incomplete markets, private and public sectors, and risk-averse workers, and use it to (i) calculate three dimensions of...
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labour, an increase in government wages or benefits reduces private sector employment, and government employment is not an …
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-private wage differentials and finds that, while there is no correlation between average public sector wages and bureaucratic …
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, an increase in government wages or benefits reduces private sector employment, and government employment is not an …
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the labor force depend crucially on the structure of the labor market. An increase of skilled public-sector wages has a …
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