%0 Report %A Albrecht, James %A Robayo-Abril, Monica %A Vroman, Susan %T Public-Sector Employment in an Equilibrium Search and Matching Model %D 2017 %8 2017 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 10467 %U https://www.iza.org/index.php/publications/dp10467 %X 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. %K wages %K search and matching %K public sector %K unemployment