The Impact of Public Employment on Labor Market Performance
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Taylor and Francis
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Using census data for Ghana, Mali and Mozambique, we study the long-term impact of public sector employment on local labor markets. We find that the public sector crowds out private employment and induces skilled workers to queue for a public job, thus increasing their unemployment rate. In addition, a growing public sector fosters employment in the tradable and nontradable sectors, remarkably for the unskilled, and the reallocation of unskilled workers away from agriculture.
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public employment, local labor markets, skills, crowding-out