@TechReport{iza:izadps:dp13042,
            	author={Gomes, Pedro Maia and Wellschmied, Felix},
            	title={Public-Sector Compensation over the Life Cycle},
            	year={2020},
	month={Mar},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={13042},
            	url={https://www.iza.org/publications/dp13042},
	abstract={The size of the public sector in terms of employment and compensation has a strong life-cycle dimension. We establish a quantitative partial-equilibrium life-cycle model with incomplete markets, private and public sectors, and risk-averse workers, and use it to (i) calculate three dimensions of public-sector compensation: wage, pension, and job-security premia, and (ii) quantify the effects of harmonizing the compensation in the two sectors. We find that the job-security and pension's premia are important forms of compensation to public-sector workers. Harmonizing the characteristics of public employment with those of the private sector would lower the unemployment rate and reduce government costs.},
	keywords={public-sector employment;public-sector wages;life cycle;unemployment;retirement;pensions;job security},
            }