Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Author: Mr.Alberto Behar

Publisher: International Monetary Fund

Published: 2013-06-12

Total Pages: 38

ISBN-13: 1484345290

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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 unemployment rates on two measures of public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, have a large negative impact on private employment rates and do not reduce overall unemployment rates.


Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Author: Alberto Behar

Publisher:

Published: 2020

Total Pages: 0

ISBN-13:

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Employment matters for development because it can raise household income, lower inequality, promote economic growth, and contribute to political stability. Many countries have high rates of public employment, but what effect does this have on overall employment and unemployment rates? This paper investigates if and to what extent public-sector employment crowds out (reduces) private-sector employment. In particular, we estimate regressions of unemployment or private-sector employment on two measures of public-sector employment. The study uses an especially assembled dataset, which is novel for its coverage of a large sample of developing countries as part of a panel of rich and poor countries. Our results point to full or just about full crowding-out for the entire sample. Unlike previous cross-country studies, which were restricted to advanced economies, we are able to show that these results also apply to developing countries, although crowding-out may not be quite as high as in advanced economies. The results mean that high rates of public employment have an offsetting large negative impact on private employment rates and do not reduce overall unemployment rates. With the qualifier that government activities may help the economy in other ways, our results imply that, rather than creating public-sector jobs, scarce fiscal resources could be better spent on other developmental needs.


Service Industries

Service Industries

Author: Peter W. Daniels

Publisher: Routledge

Published: 1985-12-19

Total Pages: 428

ISBN-13: 113583623X

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The first major synthesis of an emerging geography which is undoubtedly changing the way in which academics, planners and policy-makers identify and interpret the spatial development of cities and regions in the 1980s.


Managing Government Compensation and Employment - Institutions, Policies, and Reform Challenges

Managing Government Compensation and Employment - Institutions, Policies, and Reform Challenges

Author: International Monetary Fund. Fiscal Affairs Dept.

Publisher: International Monetary Fund

Published: 2016-08-04

Total Pages: 99

ISBN-13: 1498345778

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Government compensation and employment policies are important for the efficient delivery of public services which are crucial for the functioning of economies and the general prosperity of societies. On average, spending on the wage bill absorbs around one-fifth of total spending. Cross-country variation in wage spending reflects, in part, national choices about the government’s role in priority sectors, as well as variations in the level of economic development and resource constraints.


The Job Guarantee

The Job Guarantee

Author: M. Murray

Publisher: Springer

Published: 2013-01-07

Total Pages: 295

ISBN-13: 1137297999

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This timely collection will be the first of its kind to focus on the practical application of the government job guarantee (JG) for both developed and developing economies. Global case studies include: United States, China, Ghana, Argentina, Ireland, Iceland, and India.


The Government Analytics Handbook

The Government Analytics Handbook

Author: Daniel Rogger

Publisher: World Bank Publications

Published: 2023-10-20

Total Pages: 1197

ISBN-13: 1464819815

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The Government Analytics Handbook presents frontier evidence and practitioner insights on how to leverage data to strengthen public administration. Covering a range of microdata sources—such as administrative data and public servant surveys—as well as tools and resources for undertaking the analytics, it transforms the ability of governments to take a data-informed approach to diagnose and improve how public organizations work. Readers can order the book as a single volume in print or digital formats, or visit worldbank.org/governmentanalytics for modular access and additional hands-on tools. The Handbook is a must-have for practitioners, policy makers, academics, and government agencies. “Governments have long been assessed using aggregate governance indicators, giving us little insight into their diversity and how they can practically be improved. This pioneering handbook shows how microdata can be used to give scholars and practitioners granular and real insights into how states work, and practical guidance on the process of state-building.†? —Francis Fukuyama, Stanford University, author of State-Building: Governance and World Order in the 21st Century “The Government Analytics Handbook is the most comprehensive work on practically building government administration I have ever seen, helping practitioners to change public administration for the better.†? —Francisco Gaetani, Special Secretary for State Transformation, Government of Brazil “The machinery of the state is central to a country’s prosperity. This handbook provides insights and methodological tools for creating a better shared understanding of the realities of a state, to support the redesign of institutions, and improve the quality of public administration.†? —James Robinson, University of Chicago, coauthor of Why Nations Fail


Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin

Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin

Author: Aissatou Diallo

Publisher: International Monetary Fund

Published: 2021-12-03

Total Pages: 28

ISBN-13: 1589068548

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Many Sub-Saharan African (SSA) countries, like Benin, have scaled up public investment during the last decade. Such a strategy contributed to the improvement of infrastructure, but also to a build-up of debt vulnerabilities. Looking forward, the planned fiscal consolidation will result in some restraint of public spending, and, in particular, public investment. In this context, maintaining or even raising the region’s economic growth will require an offset by the private sector. The analysis draws lessons from countries that have successfully transitioned from public investment to private investment-led growth using a global sample starting in the mid-1980s. These lessons highlight policies that have been crucial in fostering a rebound of private investment in the wake of a contraction of public investment. The analytical framework proposed by Hausman, Rodrik and Velasco (2005) is used to identify and classify such policies. Finally, the paper analyses how the identified policies could help Benin achieving a smooth transition from public to private sector-led growth.


The Macroeconomics of the Arab States of the Gulf

The Macroeconomics of the Arab States of the Gulf

Author: Raphael Espinoza

Publisher: OUP Oxford

Published: 2013-10-31

Total Pages: 209

ISBN-13: 0191506745

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The economies of the Arab states of the Gulf have gone through considerable changes in the last decade, spurred by high oil prices and ambitious diversification plans. Large-scale immigration provided the labour force while capital inflows and financial development leveraged oil wealth to finance diversification. The collapse in real estate prices around the world followed by the global crisis slowed growth and raised questions on the appropriateness of what has been dubbed the 'GCC model'. The Gulf Cooperation Council (GCC) countries have thus far managed to leverage their large natural resource wealth to achieve economic prosperity and finance social advances, and the region also emerged as an important source of funds for the other countries in the Middle East. Nevertheless, the GCC face several challenges. Productivity growth must increase to fully reap the benefits of investment. Jobs must be created for the nationals and the growing youth population. State intervention (which is prevalent, given that oil revenues accrue to the government) must become efficient and be used to diversify and modernize the economy. In addition, the recent crisis highlighted the importance of fiscal, monetary, and financial stability policies to manage macroeconomic cycles. This book analyses these issues and combines data and econometric analysis with theoretical discussions. It concludes with a discussion of the importance of the GCC for the wider region.


Botswana

Botswana

Author: International Monetary Fund. African Dept.

Publisher: International Monetary Fund

Published: 2013-09-23

Total Pages: 43

ISBN-13: 1484394593

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This Selected Issues paper examines fiscal policy implications for labor market and economic diversification in Botswana. The IMF report analyzes that large public employment significantly affect labor market outcomes in middle-income countries, including Botswana. It is noted that reforms aimed at reducing the rents and the size of the public sector is likely to significantly improve market outcomes in Botswana. As part of efforts to find new engines of growth and support sustainable long-term and broad-based growth, Botswana has over the years also vigorously pursued policies to diversify the economy.