Labour Costs and the Size of Government

Article English OPEN
Facchini, François; Melki, Mickael; Pickering, Andrew Christopher;
  • Publisher: Wiley
  • Related identifiers: doi: 10.1111/obes.12140
  • Subject: [ SHS.ECO ] Humanities and Social Sciences/Economies and finances | [QFIN]Quantitative Finance [q-fin] | [ QFIN ] Quantitative Finance [q-fin] | public spending | Baumol Law and Labor Share | labor share | 2000 | Baumol Law

International audience; Given inelastic demand for labour‐intensive public services, the size of government depends positively on labour costs. OECD data exhibit a strong statistical association between government size and the business‐sector labour share of income. Whe... View more