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- W1567667621 abstract "The relationship between unemployment, real wages and government employment is examined to determine the nature of the transmission mechanism and the extent to which private employment is crowded-out by government employment. We find in Germany, Japan and the U.S. that there is full crowding-out (i.e. unemployment is not affected by changes in government employment). According to traditional theory, the fall in private employment results from the rise in real wages that increases in government employment generate. Our findings cast doubt on the relevance of such a transmission mechanism. We instead attribute the fall in private employment to the increased disincentives for firm and job creation which are associated with increases in government employment." @default.
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- W1567667621 date "1998-05-01" @default.
- W1567667621 modified "2023-09-27" @default.
- W1567667621 title "Government Employment and Unemployment: With One Hand Giveth, The Other Taketh" @default.
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