Public Employment and Compensation Reform During Times of Fiscal Consolidation
October 23, 2014
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Summary
This paper compiles and compares recent and past measures introduced to contain the public wage bill in a number of emerging and advanced economies to assess their effectiveness in bringing down expenditure in a sustained way. In the aftermath of the Great Recession a number of countries have approved measures on the wage bill as part of fiscal consolidation efforts. These recent episodes are compared to past cases implemented in advanced economies over the period 1979–2009. Findings suggest that public wage bill consolidation episodes pre and post 2009 are similar in many respects. Moreover, typically countries that were able to achieve more sustained reductions in the wage bill have implemented to larger extent structural measures, and/or these measures were accompanied with substantial social dialogue and consensus.
Subject: Expenditure, Government wage bill, Labor, Labor share, Public employment, Wage adjustments, Wages
Keywords: bill, bill consolidation, bill measure, bill reduction, consolidation episode, employment, Europe, fiscal consolidation, Global, Government wage bill, indexation rule, Labor share, Public employment, public reform, Public sector, wage, Wage adjustments, wage bill, Wages, WP
Pages:
23
Volume:
2014
DOI:
Issue:
192
Series:
Working Paper No. 2014/192
Stock No:
WPIEA2014192
ISBN:
9781498350341
ISSN:
1018-5941
