Public-Sector Employment in an Equilibrium Search and Matching Model∗


In this paper, we extend the Diamond-Mortensen-Pissarides model of equilibrium unemployment to incorporate public-sector employment. We calibrate the model to Colombian data and analyze the effects of public-sector wage and employment policy on the unemployment rate, on the division of employment between the private and public sectors, and on the… (More)


7 Figures and Tables