Public-sector Employment in an Equilibrium Search and Matching Model

James Albrecht, Monica Robayo-Abril and Susan Vroman

The Economic Journal, 2019, vol. 129, issue 617, 35-61

Abstract: We extend the Diamond–Mortensen–Pissarides model of equilibrium unemployment to incorporate public-sector employment. We calibrate our model to Colombian data and analyse the effects of public-sector wage and employment policy on the unemployment rate, on the division of employment between the private and public sectors, and on the distributions of wages in the two sectors.

Date: 2019
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Related works:
Working Paper: Public-Sector Employment in an Equilibrium Search and Matching Model (2017)
Working Paper: Public Sector Employment in an Equilibrium Search and Matching Model (2016)
Working Paper: Public Sector Employment in an Equilibrium Search and Matching Model (2011)
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