Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174001 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11091
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
A model with search and matching frictions and heterogeneous workers was established to evaluate a reform of the public sector wage policy in steady-state. The model was calibrated to the UK economy based on Labour Force Survey data. A review of the pay received by all public sector workers to align the distribution of wages with the private sector reduces steady-state unemployment by 1.4 percentage points.
Subjects: 
public sector employment
public sector wages
public sector wage premium
unemployment
skilled workers
worker heterogeneity
JEL: 
E24
E62
J45
Document Type: 
Working Paper

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