Arbeitspapier

Why is the public sector more labor-intensive?

A relatively high labor-intensity in government-run entities need not imply slack in their organization. Rather, it is a rational reaction to various forms of wage tax advantage that the public sector has over private firms. Even though an unequal tax treatment of public and private sectors precludes production efficiency, it may improve welfare by mitigating the labor supply distortion. With inelastic labor supply, privatizing a previously government-run sector improves welfare, while with elastic labor supply a full outsourcing of government activities can never be optimal if it goes along with a decrease in net wages.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 1259

Klassifikation
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
Thema
public sector
labor intensity
taxation
Öffentlicher Sektor
Arbeitsintensität
Lohnsteuer
Steuerbelastung
Theorie

Ereignis
Geistige Schöpfung
(wer)
Poutvaara, Panu
Wagener, Andreas
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2004

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Poutvaara, Panu
  • Wagener, Andreas
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2004

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