Wage Policy and Fiscal Sustainability in Benin

May 25, 2010

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Charlotte J. Lundgren Wage Policy and Fiscal Sustainability in Benin, (USA: International Monetary Fund, 2010) accessed October 3, 2024

Summary

This paper analyzes the impact of Benin's public wage policy on medium and long-term fiscal and debt sustainability. The main findings are that if the wage bill continues to increase in line with recent trends, debt and fiscal sustainability could be compromised by excessive deficits or by crowding out growth-enhancing public investment. The study shows that with fiscal policy guided by targets aimed at maintaining debt sustainability, population growth, and the intent to progress towards the Millennium Development Goals, there will be little space for civil service pay increases. Limiting wage bill increases to maintain fiscal sustainability is only a first step in the authorities' broader objective of reforming the civil service.

Subject: Civil service, Debt sustainability, External debt, Labor, Real wages, Wage adjustments, Wages

Keywords: Civil service, Civil service, Debt sustainability, DP, DPPP, Line in the budget, Real wage, Real wages, Salaries line, Staff, Sub-Saharan Africa, Wage, Wage adjustments, Wage bill, Wage cost, Wage expenditure, Wages

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No. 2010/004
Stock No:

WPFSBEA
ISBN:

9781455268382
ISSN:

2616-5333

Notes

Also available in French.

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