Labour Costs and the Size of Government

Article English OPEN
Facchini, François ; Melki, Mickael ; Pickering, Andrew Christopher (2016)
  • Subject: 2000

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. When the labour share is in... View more
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