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Fiscal Policy Implications for Labor Market Outcomes in Middle-Income Countries

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by Ara Stepanyan & Lamin Leigh
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Fiscal Policy Implications for Labor Market Outcomes in Middle-Income Countries by Ara Stepanyan & Lamin Leigh

Many governments have initiated public employment programs or expanded the existing ones in response to high unemployment. However, in many middle-income countries, a relatively large government coexists with persistently high unemployment. This paper explores the question of whether public employment gives rise to distortions in the labor market in the medium to long-run. Our findings do not provide any evidence that public employment reduces unemployment rate. The analysis in this paper shows that large public employment does significantly affect labor market outcomes in middle-income countries and leads to job destruction in the private sector. The extent of the impact is largely influenced by the degree of substitutability between public and private production and the size of the rents in the public sector.

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Ebook Details
Pages: 24
Size: 1.3 MB
Date published:   2015
ISBN: 9781498316217 (DRM-EPUB)

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This product is listed in the following categories:

Nonfiction > Business & Economics
Nonfiction > Business & Economics > Labor

These authors have products in the following categories:

Nonfiction > Business & Economics > International
Nonfiction > Business & Economics
Nonfiction > Business & Economics > Labor
Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

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