lazy public servants

Doug Henwood dhenwood at panix.com
Fri Oct 29 07:42:44 PDT 1999



>"Why Do Lazy People Make More Money? The Strange Case of the
> Public Sector Wage Premium"
>
> BY: UGO PANIZZA
> Inter-American Development Bank
> Office of the Chief Economist
> University of Torino
> Department of Economics
>
>Document: Available from the SSRN Electronic Paper Collection:
> http://papers.ssrn.com/paper.taf?abstract_id=174710
>
> Other Electronic Document Delivery:
> http://www.iadb.org/oce/pdf/403.pdf
> SSRN only offers technical support for papers
> downloaded from the SSRN Electronic Paper Collection
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> them into your browser eliminating all spaces.
>
>Paper ID: Inter-American Development Bank Working Paper No. 403
> Date: August 1999
>
> Contact: UGO PANIZZA
> Email: Mailto:ugop at iadb.org
> Postal: Inter-American Development Bank
> Office of the Chief Economist
> 1300 New York Avenue, NW
> Washington, DC 20577 USA
> Phone: (202)623-1427
> Fax: (202)623-2481
>
>ABSTRACT:
> Empirical work suggests the presence of a public sector wage
> premium. This paper investigates the theoretical reasons for the
> presence of a such a premium. The results of the paper are
> consistent with the higher premium paid to women and with the
> fact that the premium decreases with skills. The key insight of
> the paper is that job security undermines the incentive to work
> hard and forces the public sector to pay higher wages. One
> implication of the paper is that the public sector wage premium
> can be used as an indicator of inefficiency in the public
> sector.
>
>
>JEL Classification: H50, J45



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