Public employment redux

نویسندگان

چکیده

The public sector hires disproportionately more educated workers. To rationalize this finding, we propose a model with perfectly competitive private sector, and non-Walrasian sector. Our economy also features heterogeneity across individuals jobs, simple sorting mechanism that generates underemployment - workers performing unskilled jobs. We find the public-sector wage differential excess account for 15 percent of education bias, remaining accounted by technology. In counterintuitive fashion, compressed wages in raise inequality

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ژورنال

عنوان ژورنال: Journal of government and economics

سال: 2021

ISSN: ['2667-3193']

DOI: https://doi.org/10.1016/j.jge.2021.100003