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Labour market flows : Accounting for the public sector

Author

Listed:
  • Idriss Fontaine

    (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion)

  • Ismael Galvez-Iniesta

    (UC3M - Universidad Carlos III de Madrid [Madrid])

  • Pedro Gomes

    (Birkbeck College [University of London])

  • Diego Vila-Martin

    (UvA - University of Amsterdam [Amsterdam] = Universiteit van Amsterdam)

Abstract

For the period between 2003 and 2018, we document a number of facts about worker gross flows in France, the United Kingdom, Spain and the United States, focussing on the role of the public sector. Using the French, Spanish and UK Labour Force Survey and the US Current Population Survey data, we examine the size and cyclicality of the flows and transition probabilities between private and public employment, unemployment and inactivity. We examine the stocks and flows by gender, age and education. We decompose contributions of private and public job-finding and job-separation rates to fluctuations in the unemployment rate. Public-sector employment contributes 20 percent to fluctuations in the unemployment rate in the UK, 15 percent in France and 10 percent in Spain and the US. Private-sector workers would forgo 0.5 to 2.9 percent of their wage to have the same job security as public-sector workers.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Idriss Fontaine & Ismael Galvez-Iniesta & Pedro Gomes & Diego Vila-Martin, 2019. "Labour market flows : Accounting for the public sector," Working Papers hal-02334064, HAL.
    • Handle: RePEc:hal:wpaper:hal-02334064
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    2. Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro & Vila-Martin, Diego, 2020. "Labour market flows: Accounting for the public sector," Labour Economics, Elsevier, vol. 62(C).
    3. Gomes, Pedro Maia & Kuehn, Zoë, 2019. "You’re the One That I Want! Public Employment and Women’s Labor Market Outcomes," IZA Discussion Papers 12702, Institute of Labor Economics (IZA).
    4. Chassamboulli, Andri & Fontaine, Idriss & Gomes, Pedro, 2020. "How important are worker gross flows between public and private sector?," Economics Letters, Elsevier, vol. 192(C).
    5. Andri Chassamboulli & Pedro Gomes, 2021. "Jumping the queue: nepotism and public-sector pay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 344-366, January.
    6. Bettoni, Luis G. & Santos, Marcelo R., 2022. "Public sector employment and aggregate fluctuations," Journal of Macroeconomics, Elsevier, vol. 72(C).
    7. Joshua Dzankar Zoaka & Hasan Güngör, 2023. "Effects of financial development and capital accumulation on labor productivity in sub-Saharan Africa: new insight from cross sectional autoregressive lag approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-18, December.
    8. Albanese, Andrea & Cockx, Bart & Dejemeppe, Muriel, 2024. "Long-term effects of hiring subsidies for low-educated unemployed youths," Journal of Public Economics, Elsevier, vol. 235(C).
    9. Chassamboulli, Andri & Gomes, Pedro, 2023. "Public-sector employment, wages and education decisions," Labour Economics, Elsevier, vol. 82(C).
    10. Charlot, Olivier & Fontaine, Idriss & Sopraseuth, Thepthida, 2024. "Job polarization and non-standard work: Evidence from France," Labour Economics, Elsevier, vol. 88(C).
    11. Geromichalos, Athanasios & Kospentaris, Ioannis, 2022. "The unintended consequences of meritocratic government hiring," European Economic Review, Elsevier, vol. 144(C).
    12. Chassamboulli, Andri & Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro, 2024. "Immigration and labour market flows," Labour Economics, Elsevier, vol. 86(C).
    13. Lucas Navarro & Mauricio Tejada, 2022. "Does Public Sector Employment Buffer the Minimum Wage Effects?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 43, pages 168-196, January.
    14. Garibaldi, Pietro & Gomes, Pedro & Sopraseuth, Thepthida, 2021. "Public employment redux," Journal of Government and Economics, Elsevier, vol. 1(C).
    15. Sergei SOARES & Janine BERG, 2022. "The labour market fallout of COVID‐19: Who endures, who doesn't and what are the implications for inequality," International Labour Review, International Labour Organization, vol. 161(1), pages 5-28, March.
    16. Diogo Baerlocher, 2022. "Public employment and economic growth," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(1), pages 211-236, February.
    17. Miriam Marcén & Marina Morales, 2021. "The intensity of COVID‐19 nonpharmaceutical interventions and labor market outcomes in the public sector," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 775-798, September.
    18. Andrea Camilli & Pedro Gomes, 2023. "Public employment and homeownership dynamics," Public Choice, Springer, vol. 194(1), pages 101-155, January.
    19. Galanakis, Yannis, 2020. "Female Human Capital Mismatch: An extension for the British public sector," GLO Discussion Paper Series 669, Global Labor Organization (GLO).
    20. Gomes, Pedro Maia & Wellschmied, Felix, 2020. "Public-Sector Compensation over the Life Cycle," IZA Discussion Papers 13042, Institute of Labor Economics (IZA).
    21. Fiaschi, Davide & Tealdi, Cristina, 2021. "A General Methodology to Measure Labour Market Dynamics," IZA Discussion Papers 14254, Institute of Labor Economics (IZA).
    22. Nalban, Valeriu & Smădu, Andra, 2021. "The interaction between private sector and public sector labor markets: Evidence from Romania," Economic Modelling, Elsevier, vol. 94(C), pages 804-821.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • 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
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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