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L'emploi public : un remède au chômage ?

Author

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  • Yann Algan
  • Pierre Cahuc
  • André Zylberberg

Abstract

This paper deals with the consequence of public employment on labor market performances in 17 OECD countries over the period 1960-2000. Empirical evidence suggests that the creation of one public job destroyed about 1,5 private job, sightly decreased participation to the labor market and eventually increased the number of unemployed workers by 0,3. It is also suggested that the crowding out effect of public jobs on private jobs is more important in countries in which public production is highly substitutable to private activities and in which the public sector provides high rents. Classification JEL : H11, H40, H50, J21, J45

Suggested Citation

  • Yann Algan & Pierre Cahuc & André Zylberberg, 2002. "L'emploi public : un remède au chômage ?," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 589-598.
    • Handle: RePEc:cai:recosp:reco_533_0589
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    References listed on IDEAS

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    1. Dimitri G. Demekas & Zenon G. Kontolemis, 2000. "Government Employment and Wages and Labour Market Performance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(3), pages 391-415, July.
    2. Yann Algan & Pierre Cahuc & André Zylberberg, 2002. "Public employment and labour market performance [‘On the benefits from rigid labour markets: Norms, market failures and social insurances’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(34), pages 7-66.
    3. Bertil Holmlund, 1997. "Macroeconomic Implications of Cash Limits in the Public Sector," Economica, London School of Economics and Political Science, vol. 64(253), pages 49-62, February.
    4. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1127-1161.
    5. Holmlund, Bertil & Linden, Johan, 1993. "Job matching, temporary public employment, and equilibrium unemployment," Journal of Public Economics, Elsevier, vol. 51(3), pages 329-343, July.
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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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