Public employment policies and regional unemployment differences

Caponi, Vincenzo

doi:10.1016/j.regsciurbeco.2016.11.005

Cited by 21 publications

(8 citation statements)

References 17 publications

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“…A substantial body of evidence that looks at the regional distribution of wages shows that, particularly in Western European countries, public sector wages are geographically more uniform than private sector wages. For instance, one study shows that public sector employees in southern Italy are paid the same wages as their counterparts in the north, while private sector employees, due to the fact that productivity in the south is generally lower, face a wage gap of about 10% [9]. Similar evidence of public sector wages being more regionally homogeneous than private sector wages is presented in other studies for the UK, Germany, and France.…”

Section: Wage Rigiditymentioning

confidence: 57%

“…One study finds that about half of the unemployment gap between the south and the north of Italy can be explained by the role of the public sector [9]. Were public sector wages in line with those of the private sector, that is, paid according to local productivity, the unemployment gap would be half of what it has been historically.…”

Section: Crowding Out and The Destabilizing Role Of Public Sector Empmentioning

confidence: 99%

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The effects of public sector employment on the economy

Caponi¹

2017

izawol

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Section: Wage Rigiditymentioning

confidence: 57%

Section: Crowding Out and The Destabilizing Role Of Public Sector Empmentioning

confidence: 99%

The effects of public sector employment on the economy

Caponi¹

2017

izawol

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“…11 See, for instance, Holmlund (1993) and Holmlund (1997). 12 See, for instance, Caponi (2014). 13 See the stylized facts presented by Fernández-de-Córdoba et al (2012) and Kollintzas et al (2015).…”

Section: Endnotesmentioning

confidence: 99%

Understanding the public sector pay gap

et al. 2017

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We uncover the short-and long-run structural determinants of the existing cross-country heterogeneity in public-private pay differentials for a broad set of OECD countries. We explore micro data (EU-SILC, 2004-2012 and macro data . Three results stand out. First, when looking at pay gaps based on individual data, more than half of the cross-sectional variation of the sample can be accounted for by the degree of exposure to international competition, as well as by the size of the public sector labor force and its composition (i.e., the intensity in the provision of pure public goods), while labor market institutions play a very limited role. Second, we find that in some countries, pay gaps have narrowed down significantly during the recent financial crisis, this decrease being explained by the widespread process of fiscal consolidation rather than by changes in the previous factors. Third, we show that in the log run, openness to international trade and improvements in the institutional quality of governments are associated with decreases in the public-private wage gap. Our findings can be rationalized by a body of research stressing noncompetitive wage settlements in the public sector. JEL Classification: J31, J45, H50

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“…Thus, more coherent wage policies might be necessary. Caponi (2017), by calibrating a search model to Italy, shows that a unique wage policy can generate different effects on employment across regions. In general, if based on aggregate instead of particular elasticities-to account for regional, sectoral, or size differences-policy design might be seriously flawed (Young 2013).…”

Section: Introductionmentioning

confidence: 99%

Heterogeneous labour demand in the Colombian manufacturing sector

Arango

Castellani

Obando

2019

J Labour Market Res

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Using the Colombian Annual Manufacturing Survey between 2000 and 2013, we investigate the heterogeneity in labour demand within the industrial sector based on the elasticities. We find that long-run own-price, output, and TFP elasticities vary across a variety of dimensions such as regions, sectors, and plant sizes depending on workers' skills and contract modalities (open-ended and temporary). The determinants of industrial labour demand are quantitatively different, mainly, across regions and, to some extent, subsectors when we focus on demand for unskilled workers. It is possible that, given the importance of apparel in the manufacturing sector in Pereira, labour demand for permanent skilled workers in that city is different from that of Bogotá, Cali, and Medellín. Thus, labour demand heterogeneity is just a symptom of the underlying differences in the production processes and produced goods, technologies, labour force qualification and productivity, preferences of workers, rigidities and wage-setting procedures, and peculiarities of goods' markets, etc. Suggestions to induce more wage flexibility and decrease labour segmentation emerge from this paper.

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Public employment policies and regional unemployment differences

Cited by 21 publications

References 17 publications

The effects of public sector employment on the economy

The effects of public sector employment on the economy

Understanding the public sector pay gap

Heterogeneous labour demand in the Colombian manufacturing sector

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