Managing Government Wages and Employment
Posted by Teresa Curristine and Mercedes Garcia-Escribano[1]
Government wage and employment policies have important social and economic implications. The government is the major employer in many countries, delivering key public services and typically spending around 25 percent of its budget on the wage bill (See Chart 1). Given its sizable budget weight, how the wage bill is managed heavily influences the sustainability of public finances, the quantity and quality of key public services, and as governments are major employers, private sector pay and employment.
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