TY  - RPRT
        AU  - Gomes, Pedro Maia
AU  - Wellschmied, Felix
        TI  - Public-Sector Compensation over the Life Cycle
        PY  - 2020/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13042
        UR  - https://www.iza.org/publications/dp13042
        AB  - 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.
        KW  - public-sector employment
KW  - public-sector wages
KW  - life cycle
KW  - unemployment
KW  - retirement
KW  - pensions
KW  - job security
        ER  -