Publication Type
Journal Article
Version
publishedVersion
Publication Date
9-1998
Abstract
Our model endogenizes the share of public sector employment in a neoclassical growth model. Under the assumptions that public sector production is labor intensive and the elasticity of substitution between capital and labor is less than one, the public share of employment is shown to decline with a rise in capital per effective worker. Our theory predicts that periods of high productivity growth are associated with a rising trend of the public share of employment. This prediction conforms well with U.S. experience from 1950-1995.
Keywords
Employment, growth model, public sector
Discipline
Economics | Growth and Development | Public Economics
Research Areas
Applied Microeconomics
Publication
American Economist
Volume
42
Issue
2
First Page
73
Last Page
79
ISSN
0569-4345
Citation
HO, Kong Weng and HOON, Hian Teck.
Productivity Growth and Public Sector Employment. (1998). American Economist. 42, (2), 73-79.
Available at: https://ink.library.smu.edu.sg/soe_research/328
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