Faggio, Giulia and Overman, Henry G. 
ORCID: 0000-0002-3525-7629
(2013)
The effect of public sector employment on local labour markets.
Journal of Urban Economics, 79.
pp. 91-107.
ISSN 0094-1190
Abstract
This paper considers the impact of public sector employment on local labour markets. Using English data at the Local Authority level for 2003–2007 we find that public sector employment has no identifiable effect on total private sector employment. However, public sector employment does affect the sectoral composition of the private sector. Specifically, each additional public sector job creates 0.5 jobs in the non-tradable sector (construction and services) while crowding out 0.4 jobs in the tradable sector (manufacturing). When using data for a longer time period (1999–2007) we find no multiplier effect for non-tradables, stronger crowding out for tradables and, consistent with this, crowding out for total private sector employment.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.journals.elsevier.com/journal-of-urban-... |
| Additional Information: | © 2013 Elsevier Inc. |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H70 - General R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade |
| Date Deposited: | 30 May 2013 14:23 |
| Last Modified: | 25 Sep 2024 18:09 |
| URI: | http://eprints.lse.ac.uk/id/eprint/50482 |
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