@techreport{Poutvaara2004public,
abstract = {A relatively high labor-intensity in government-run entities need not imply slack in their
organization. Rather, it is a rational reaction to various forms of wage tax advantage that the
public sector has over private firms. Even though an unequal tax treatment of public and
private sectors precludes production efficiency, it may improve welfare by mitigating the
labor supply distortion. With inelastic labor supply, privatizing a previously government-run
sector improves welfare, while with elastic labor supply a full outsourcing of government
activities can never be optimal if it goes along with a decrease in net wages.},
author = {Panu Poutvaara and Andreas Wagener},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H21; D24; L33; 330; public sector; labor intensity; taxation; \"{O}ffentlicher Sektor; Arbeitsintensit\"{a}t; Lohnsteuer; Steuerbelastung; Theorie},
language = {eng},
number = {1259},
title = {Why is the public sector more labor-intensive?},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18897},
year = {2004}
}
