EconPapers    
Economics at your fingertips  
 

Meritocracy, Public-Sector Pay and Human Capital Accumulation

Andri Chassamboulli () and Pedro Gomes ()

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: We set up a model with search and matching frictions to understand the effects of employment and wage policies, as well as non-meritocratic hiring in the public sector, on unemployment, rent seeking and education decisions. Wages and employment of skilled and unskilled public-sector workers affect educational attainment; the extent of that effect depends on the structure of the labor market and how non-meritocratic public-sector hiring is. Conditional on inefficiently high public-sector wages, less-meritocratic hiring in the public sector lowers the unemployment rate and might raise welfare because it limits the size of queues for public-sector jobs. Public-sector wage and employment policies impose an endogenous constraint on the number of workers the government can hire through connections.

Keywords: Public-sector employment; meritocracy; public-sector wages; unemployment; skilled workers; human capital accumulation (search for similar items in EconPapers)
JEL-codes: E24 J31 J45 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-hrm, nep-lma and nep-mac
Date: 2018-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://papers.econ.ucy.ac.cy/RePEc/papers/08-18.pdf (application/pdf)

Related works:
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:ucy:cypeua:08-2018

Access Statistics for this paper

More papers in University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics
Bibliographic data for series maintained by ().

 
Page updated 2019-12-06
Handle: RePEc:ucy:cypeua:08-2018