Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Public Sector Wage Policy and Labor Market Equilibrium: A Structural Model

Abstract : We develop and estimate a structural model that incorporates a sizable public sector in a labor market with search frictions. The wage distribution and the employment rate in the public sector are taken as exogenous policy parameters. Overall wage distribution and employment rate are determined within the model, taking into account the private sector's endogenous response to public sector employment policies. Job turnover is sector specific and transitions between sectors depend on the worker's decision to accept alternative employment in the same or different sector by comparing the value of employment in the current and prospective jobs. The model is estimated on British data by a method of moments. We use the model to simulate the impact of various counterfactual public sector wage and employment policies.
Document type :
Preprints, Working Papers, ...
Complete list of metadata
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Tuesday, November 16, 2021 - 4:20:41 AM
Last modification on : Friday, August 5, 2022 - 2:49:41 PM


Files produced by the author(s)



Jake Bradley, Fabien Postel-Vinay, Hélène Turon. Public Sector Wage Policy and Labor Market Equilibrium: A Structural Model. 2014. ⟨hal-03429904⟩



Record views


Files downloads