Abstract

CASTRO, Conceição  and  NUNES, Pedro. Efeitos do Emprego público na produção privada. Tékhne [online]. 2009, n.12, pp.25-37. ISSN 1645-9911.

Recently there has been a concern to reduce public employment and increase the efficiency of public administrations as a means of promoting economic growth. This article analyzes the relationship between public employment and production in the private sector for a set of 19 OECD countries over the period 1960-2008. Following the specification of Koskela and Virén (2000) results suggest that this relationship is not linear, but depends on the size of government. Likewise, in economies where the public sector has a size smaller than the critical (which maximizes private production) the increase in public employment stimulates the growth of private production. On the contrary, when the dimension in public sector is excessive, the increase in employment in this sector has a negative impact on private output.

Keywords : public employment; private output; public consumption.

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