Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
9-1-2015
Abstract
We quantify the extent to which public-sector employment crowds out privatesector employment using specially assembled datasets for a large cross-section of developing and advanced countries, and discuss the implications for countries in the Middle East, North Africa, Caucasus and Central Asia. These countries simultaneously display high unemployment rates, low private-sector employment rates and high proportions of government-sector employment. Regressions of unemployment rates on public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, do not reduce overall unemployment rates.
Identifier
2334-282X
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
17
Recommended Citation
Behar, Alberto and Mok, Junghwan, "Does Public Employment Reduce Unemployment?". Topics in Middle Eastern and North African Economies, electronic journal, 17, Middle East Economic Association and Loyola University Chicago, 2015, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© 2015 the authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles. http://www.luc.edu/orgs/meea/volume17/meea17.htm