2013
DOI: 10.5089/9781484329412.001
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Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Abstract: We quantify the extent to which public-sector employment crowds out private-sector 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 either private-sector employment rates or unemplo… Show more

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Cited by 23 publications
(12 citation statements)
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“…In several countries in the Arab Gulf, government jobs have been an industry of choice for young adults (Behar & Mok, 2013;World Bank, 2013). Young people with adequate resources will wait for public sector jobs to open, rather than taking a job in the private sector, given the differentially high pay offered in public sector jobs and the corresponding low expected productivity (World Bank, 2013;Bunglawala, 2011;Stasz, Eide, & Martorell, 2008;Shediac & Samman, 2010).…”
Section: Introductionmentioning
confidence: 99%
“…In several countries in the Arab Gulf, government jobs have been an industry of choice for young adults (Behar & Mok, 2013;World Bank, 2013). Young people with adequate resources will wait for public sector jobs to open, rather than taking a job in the private sector, given the differentially high pay offered in public sector jobs and the corresponding low expected productivity (World Bank, 2013;Bunglawala, 2011;Stasz, Eide, & Martorell, 2008;Shediac & Samman, 2010).…”
Section: Introductionmentioning
confidence: 99%
“…Behar and Mok [2013] report that, on average for 194 countries, public sector employment accounts for 15% of total employment. Besides hiring a large fraction of the labor force, there is a bias towards skilled workers, equally common in both advanced and developing economies.…”
mentioning
confidence: 99%
“…Last but not least, a statement of public employment and political power must be briefly discussed to properly address the research questions in the next sections. In that regard, we witness that the definition of public employment differs due country-specific regulations and reforms trajectories of public employment regimes and therefore it has not reached universal consensus (Gimpelson andTreisman, 2002, Behar andMok, 2013). Although imprecise, the definition by Gottschall et al (2015) seems complete, in that they define the term public employment as a large and heterogeneous group of employees who are directly or indirectly involved in the production and supply of publicly-financed goods and services; other definitions tend to exclude companies owned by the state for operating in the private sphere.…”
Section: Introductionmentioning
confidence: 99%