lazy public servants

[Doug Henwood]

>"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
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>
>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