%0 Report
        %A Gomes, Pedro Maia
        %T Heterogeneity and the Public Sector Wage Policy
        %D 2017
        %8 2017 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 11091
        %U https://www.iza.org/index.php/publications/dp11091
        %X 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.
        %K public sector wage premium
%K public sector wages
%K public sector employment
%K unemployment
%K skilled workers
%K worker heterogeneity