Fiscal Austerity and Public Servant Quality

Nadeem Ul Haque, Peter Montiel and Stephen Sheppard
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Nadeem Ul Haque: International Monetary Fund

Public Economics from University Library of Munich, Germany

Abstract: In this paper we use a simple model to analyze the forces which determine the size of the public sector and the quality of workers employed in that sector. Workers are heterogeneous, and the public sector chooses an employment strategy which maximizes a social welfare function $U(s,Y)$ which depends on the share of the labor force employed in public service $s$ and private sector output $Y$. The government is fully informed about worker productivity. By examining the welfare properties of the possible outcomes, we are able to illuminate situations in which policies which seek to constrain the public sector may or may not improve economic efficiency.

Keywords: Public Sector Efficiency; public sector labor markets; fiscal constraints (search for similar items in EconPapers)
JEL-codes: H11 H50 H87 J45 (search for similar items in EconPapers)
Pages: 15 pages
Date: 1997-05-12, Revised 1997-06-09
Note: Type of Document - Postcript prepared on Win95 Scientific Workplace; to print on PostScript; pages: 15; figures: included.
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Journal Article: Fiscal Austerity and Public Servant Quality (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:9705003

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