Facchini, François, Melki, Mickael and Pickering, Andrew Christopher orcid.org/0000-0003-1545-2192 (2016) Labour Costs and the Size of Government. Oxford Bulletin of Economics and Statistics. pp. 251-275. ISSN 0305-9049
Abstract
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 instrumented with measures of technological change, institutional variation and predetermined data it continues to positively impact government size. In contrast, transfer spending is unaffected by the labour share. The evidence is consistent with the idea that the recent decline in the labour share has contributed to the slowdown in the growth of government witnessed in much of the post-war era.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016, The Department of Economics, University of Oxford and John Wiley & Sons Ltd. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for details. |
Keywords: | Size of Government,Labour Share |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > Economics and Related Studies (York) |
Depositing User: | Pure (York) |
Date Deposited: | 28 Jun 2016 10:57 |
Last Modified: | 22 Jan 2025 00:06 |
Published Version: | https://doi.org/10.1111/obes.12140 |
Status: | Published |
Refereed: | Yes |
Identification Number: | 10.1111/obes.12140 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:101536 |