Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/107322 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5193
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper develops a dynamic general equilibrium model with three distinct social groups, capitalists, private workers and public employees. After solving for the status quo equilibrium, which can mimic the advantages of employment in the public sector in most EU countries, the paper looks for policy reforms that can improve work incentives, and hence enhance productive efficiency, in the public sector. We focus on reforms aiming to establish parity between work conditions in the public and the private sector.
Subjects: 
dynamic general equilibrium models
efficiency
equity
employment
incentives
JEL: 
D58
Document Type: 
Working Paper
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