TY  - RPRT
        AU  - Chassamboulli, Andri
AU  - Gomes, Pedro Maia
        TI  - Public-Sector Employment, Wages and Education Decisions
        PY  - 2023/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16001
        UR  - https://www.iza.org/index.php/publications/dp16001
        AB  - We set up a search and matching model with a private and a public sector to understand the effects of employment and wage policies in the public sector on unemployment and education decisions. The effects on the educational composition of the labor force depend crucially on the structure of the labor market. An increase of skilled public-sector wages has a small positive impact on educational composition and larger negative impact on the private employment of skilled workers, if the two sectors are segmented. If there are movements across the two sectors, it has large positive impacts on education and on skilled private employment. We highlight the usefulness of the model for policymakers by calculating the value of public-sector job security for skilled and unskilled workers. 
        KW  - public-sector employment
KW  - public-sector wages
KW  - unemployment
KW  - skilled workers
KW  - education decision
KW  - public-sector job security premium
        ER  -