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- Title
Does Government Employment 'Crowd-out' Private Employment? Evidence from Sweden*.
- Authors
Malley, Jim; Moutos, Thomas
- Abstract
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 facts 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.
- Subjects
SWEDEN; PUBLIC spending; EMPLOYMENT; SUPPLY-side economics
- Publication
Scandinavian Journal of Economics, 1996, Vol 98, Issue 2, p289
- ISSN
0347-0520
- Publication type
Article
- DOI
10.2307/3440860