Public sector pay and local employment
Overman, H. G.
(2012).
Public sector pay and local employment.
(2012).
Public sector pay and local employment.
Our work published last week suggests that public sector employment is good for local services, bad for local manufacturing. In the short run, these effects balance out so that total private sector employment is left unchanged. In the longer run, the effect on local manufacturing appears to be stronger, the effect on local services weaker and total private sector employment decreases offsetting any additional employment from the public sector.