EconPapers    
Economics at your fingertips  
 

Controlling the Public Wage Bill in Portugal: The Case of University Professors

Alfredo Pereira and Rui Pereira

No 36, Working Papers from Department of Economics, College of William and Mary

Abstract: Public wages are a large share of the public budget in Portugal and, therefore, hiring freezes are a central feature of the efforts to control the public deficit. The system of public career advancement, however, may lead to increases in the wage bill even in the presence of hiring freezes. We estimate this wage drift effect in the case of university professors. We use a logit analysis with 1999 census data to identify the determinants of career advancement, to estimate the employment distribution in previous years, and to obtain the corresponding wage bill. We estimate that the annual wage drift is 2.6%, a figure well above the GDP growth rate and, therefore, we conclude that hiring freezes may be far from enough to stop the expansion of the public wage bill.

Keywords: public wages; budgetary restraint. (search for similar items in EconPapers)
JEL-codes: H60 J30 J45 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2006-07-25, Revised 2006-08-11
New Economics Papers: this item is included in nep-lab, nep-pbe and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economics.wm.edu/wp/cwm_wp36rev.pdf (application/pdf)

Related works:
Journal Article: Controlling the public wage bill in Portugal: the case of university professors (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwm:wpaper:36

Access Statistics for this paper

More papers in Working Papers from Department of Economics, College of William and Mary Contact information at EDIRC.
Bibliographic data for series maintained by Daifeng He ( this e-mail address is bad, please contact ) and Alfredo Pereira ().

 
Page updated 2024-06-17
Handle: RePEc:cwm:wpaper:36