The Impact of Public Employment on Labor Market Performance : Evidence from African Countries

Using census data for Ghana, Mali and Mozambique, we study the long-term impact of public sector employment on local labor markets. We find that the public sector crowds out private employment and induces skilled workers to queue for a public job, thus increasing their unemployment rate. In addition...

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Bibliographic Details
Main Authors: Ranzani, Marco, Tuccio, Michele
Language:en_US
Published: Taylor and Francis 2016
Subjects:
Online Access:http://hdl.handle.net/10986/24613
Description
Summary:Using census data for Ghana, Mali and Mozambique, we study the long-term impact of public sector employment on local labor markets. We find that the public sector crowds out private employment and induces skilled workers to queue for a public job, thus increasing their unemployment rate. In addition, a growing public sector fosters employment in the tradable and nontradable sectors, remarkably for the unskilled, and the reallocation of unskilled workers away from agriculture.