Resource title

Public enterprises and labor market performance

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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.

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en

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application/pdf

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http://eprints.lse.ac.uk/3529/1/Public_enterprises_and_labor_market_performance%28CEP%29.pdf

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