@TechReport{iza:izadps:dp10467, author={Albrecht, James and Robayo-Abril, Monica and Vroman, Susan}, title={Public-Sector Employment in an Equilibrium Search and Matching Model}, year={2017}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={10467}, url={https://www.iza.org/index.php/publications/dp10467}, abstract={We extend the Diamond-Mortensen-Pissarides model of equilibrium unemployment to incorporate public-sector employment. We calibrate our model to Colombian data and analyze the effects of public-sector wage and employment policy on the unemployment rate, on the division of employment between the private and public sectors, and on the distributions of wages in the two sectors.}, keywords={wages;search and matching;public sector;unemployment}, }