University of Cagliari, University of Sassari and CRENoS.
IZA World of Labor role
Author
Current position
PhD Candidate in Economics at University of Sassari. Research Fellow at the University of Cagliari.
Research interest
Macroeconomics, labor economics
Qualifications
Master Degree in International Economics and Commerce, UNIVPM, 2020.
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The effects of public sector employment on the economy Updated
The size and wage level of the public sector affect overall employment volatility and the economy
Vincenzo CaponiSimone Nobili, June 2024Public sector jobs are established by governments to directly provide goods and services. Governments may also choose to regulate the size of the public sector in order to stabilize targeted national employment levels. However, economic research suggests that these effects are uncertain and critically depend on how public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect. Public employment also has important productivity and redistributive effects.MoreLess