Do Government Wage Cuts Close Budget Deficits? : A Conceptual Framework for Developing Countries and Transition Economies.

Real wage declines have been common in the public sector in many countries over substantial periods of time. In several cases, such wage reductions have coincided with a decline in the efficiency of the public sector. In a simple analytical framework, it is shown that higher wage levels alter the in...

Descrizione completa

Dettagli Bibliografici
Ente Autore: International Monetary Fund
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 1996.
Serie:IMF Working Papers; Working Paper ; No. 1996/019
Accesso online:Full text available on IMF
LEADER 01803cas a2200241 a 4500
001 AALejournalIMF000226
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781451922554 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
110 2 |a International Monetary Fund. 
245 1 0 |a Do Government Wage Cuts Close Budget Deficits? :   |b A Conceptual Framework for Developing Countries and Transition Economies. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1996. 
300 |a 1 online resource (40 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Real wage declines have been common in the public sector in many countries over substantial periods of time. In several cases, such wage reductions have coincided with a decline in the efficiency of the public sector. In a simple analytical framework, it is shown that higher wage levels alter the incentive compatible equilibrium by attracting relatively skilled human capital to the government sector, which raises the quality of public output--tax revenue collection in this paper. Increases in wages should be complemented with appropriate monitoring and penalty rates for effective tax administration; prescriptions of raising the statutory tax rate alone, however, may not increase revenue collection. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1996/019 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1996/019/001.1996.issue-019-en.xml  |z IMF e-Library