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The impact of public employment on labour market performance: evidence from African countries

Marco Ranzani and Michele Tuccio

Applied Economics Letters, 2017, vol. 24, issue 5, 298-301

Abstract: Using census data for Ghana, Mali and Mozambique, we study the long-term impact of public sector employment on local labour 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.

Date: 2017
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DOI: 10.1080/13504851.2016.1184370

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