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Public enterprises and labor market performance

By Johannes Horner, L. Rachel Ngai and Claudia Olivetti

Abstract

This paper shows that state control of some industries may have contributed to the increase in European unemployment from the 1970s to the early 1990s. We develop a simple model with both publicly-run and privately-run enterprises and show that when economic turbulence increases, higher unemployment rates may result in economies that have a larger public sector

Topics: HJ Public Finance
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 2004
OAI identifier: oai:eprints.lse.ac.uk:3529
Provided by: LSE Research Online

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