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Does Government employment "crowd-out" private employment: the Swedish case

Malley, J., and Moutos, T. (1996) Does Government employment "crowd-out" private employment: the Swedish case. Scandinavian Journal of Economics, 98 (2). pp. 289-302. ISSN 0347-0520

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Publisher's URL: http://www.jstor.org/stable/3440860

Abstract

It is argued that increases in government spending which take the form of increases in government employment can have a negative impact on private sector employment by increasing real wages. In fact, once the supply reducing effects of higher taxes needed to finance the increase in government employment are taken into account, the fall in private employment can be so large as to cause decreases in aggregate employment. We demonstrate this with quarterly Swedish data for the period 1964-90.

Item Type:Article
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Malley, Prof James
Authors: Malley, J., and Moutos, T.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Scandinavian Journal of Economics
Publisher:Wiley-Blackwell Publishing Ltd.
ISSN:0347-0520
ISSN (Online):1467-9442

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