Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper uses a unique dataset of both public and private sector primary school teachers and their students to present among the first estimates in a low-income country of (a) teacher effectiveness; (b) teacher value added (TVA) and its correlates; and (c) the link between TVA and teacher wages. Teachers are highly effective in our setting: Moving a student from the 5th to the 95th percentile in the public school TVA distribution would increase mean student test scores by 0.54 standard deviations. Although the first two years of experience, as well as content knowledge, are associated with TVA, all observed teacher characteristics explain no more than 5 percent of the variation in TVA. Finally, there is no correlation between TVA and wages in the public sector (although there is in the private sector), and a policy change that shifted public hiring from permanent to temporary contracts, reducing wages by 35 percent, had no adverse impact on TVA, either immediately or after 4 years. The study confirms the importance of teachers in low income countries, extends previous experimental results on teacher contracts to a large-scale policy change, and provides striking evidence of significant misallocation between pay and productivity in the public sector.

Primary Education --- Productivity --- Public Sector Wages --- Teacher Effectiveness --- Teacher Salaries

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

We study the determinants of employment and wages in the public sector, using a new set of panel data for 34 LDCs and 21 OECD countries from 1972–992, by estimating equations suggested by an efficiency wage model. We find that government employment is positively associated with the relaxation of resource constraints (the revenue-to-GDP ratio and foreign financing in the case of developing countries and GDP per capita in the case of OECD countries), urbanization, the level of education, and certain countercyclical pressures for government hiring (the real effective exchange rate for developing countries and private employment for OECD countries). Certain measures of government wages are positively associated with government revenues and negatively associated with the level of education, government debt, and countercyclical pressures.

Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Wages, Compensation, and Labor Costs: General --- Labour --- income economics --- Civil service & public sector --- Public employment --- Public sector wages --- Civil service --- Economic theory --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines interactions between self-interested agents in a two-tier government hierarchy, consisting of a central authority and bureaucrats in a two-stage game, where the actions of agents affect private sector allocations. Conditions under which lower-tier corruption arises as an equilibrium characterization of the game are identified. If bureaucratic corruption sufficiently reduces the tax base, policies that deter corruption may be optimal. When monitoring is expensive or ineffective, lower-level corruption arises as equilibrium. Tax farming and the sale of offices can occur in these equilibria. In addition, strategic complementarities between bureaucrats may give rise to multiple equilibria.

Labor --- Taxation --- Criminology --- Noncooperative Games --- Organizational Behavior --- Transaction Costs --- Property Rights --- Bureaucracy --- Administrative Processes in Public Organizations --- Corruption --- Wages, Compensation, and Labor Costs: General --- Taxation, Subsidies, and Revenue: General --- Corporate crime --- white-collar crime --- Labour --- income economics --- Public finance & taxation --- Tax incentives --- Wages --- Public sector wages --- Crime --- France

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Central government wage expenditures accounted for 7 percent of GDP in 99 countries during 1980-90 (unweighted average). Regression analysis indicates that federations, countries with high populations and high per capita incomes, heavily indebted countries, and small low-income economies tend to have lower central government wage expenditures as a percent of GDP. Access to private nonguaranteed foreign financing is associated with higher wage expenditures, while public and publicly guaranteed foreign financing is not; the public and publicly guaranteed foreign financing is often provided for government capital projects. Medium-term structural adjustment programs, on average, have a negative association with wage expenditures, while short-term stabilization programs do not. The negative correlation between central government wage expenditures and per capita income appears related to the level of centralization of government expenditures. General government wage expenditures are higher in industrial countries than in developing countries.

Budgeting --- Labor --- Public Finance --- National Budget --- Budget Systems --- National Government Expenditures and Related Policies: General --- Wages, Compensation, and Labor Costs: General --- Budgeting & financial management --- Public finance & taxation --- Labour --- income economics --- Central government spending --- Total expenditures --- Expenditure --- Wages --- Public sector wages --- Public financial management (PFM) --- Budget --- Expenditures, Public --- Belgium

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.

Exports and Imports --- Labor --- Public Finance --- Taxation, Subsidies, and Revenue: General --- National Government Expenditures and Related Policies: General --- International Lending and Debt Problems --- Trade: General --- Wages, Compensation, and Labor Costs: General --- Public finance & taxation --- International economics --- Labour --- income economics --- Revenue administration --- Expenditure --- External debt --- Exports --- Wages --- International trade --- Public sector wages --- Revenue --- Expenditures, Public --- Debts, External --- Niger