Government revenue and expenditure in an agrarian economy: North Arcot District in South India

This paper uses disaggregated data to assess the recent history and geography of revenue mobilization and expenditure allocation in a district where rice production increased by 50 per cent during the decade 1973–83 and where gross urban output (to judge from research in one market town) increased in real terms by a factor of 8. At the district level, land revenue is a small and unstable component of revenue despite the dynamism of the rice economy. Furthermore rice is exempt from commercial taxes, which are eight times more important than land revenue, just under half of which derives from traded agricultural goods. Despite the region's commercial dynamism, real revenue has increased by only 76 per cent over the decade, suggesting substantial evasion. The district appears to be a net donor to the state fisc. Direct expenditure shows urban bias (being 60 per cent more per caput than rural expenditure), though the gap has been narrowing. Despite this trend the rice-producing sector appears to be a net beneficiary from direct revenue and expenditure. A rural micro-level case study shows that the village panchayat is a net donor and the urban panchayat union a net recipient of an unstable quantum of revenue. A case study of an urban municipality shows real revenue declining over the decade, forcing an increasing dependence upon discretionary grants from the state government, which cannot prevent a deterioration in urban infrastructure. Indirect revenue and expenditure shows a recent trend towards the rural population. Public sector employment is numerically significant, urban, and has average incomes equal to the top decile of rural cultivators.     

Employment,privatization, and managerial choice: Does contracting out reduce public sector employment?

We examine the effects of governments' use of alternative service provision on public employment using panel data from a nationally representative sample of local governments. We model the effects of alternative service provision on the size of the public workforce and hypothesize that alternative provision jointly impacts both full‐ and part‐time employment. We find evidence of an inter‐relationship between these employment types. Our results from seemingly unrelated and 3SLS regressions indicate that full‐time employment in the public sector declines when additional services are provided by for‐profit providers, while part‐time employment increases. The net employment effect in the public sector is negative when government services are moved to the for‐profit sector. These combined effects result in a compositional shift toward more part‐time public sector employment. © 2006 by the Association for Public Policy Analysis and Management     

Industrial Relations and Public Sector Reform: The Victorian Case

Few anticipated the radical program of public sector reform introduced by the Kennett government. A commitment to downsizing, markets and privatisation has transformed employment relations in the Victorian public sector. Familiar institutions have disappeared, major employment areas have been restructured, and jurisdiction for much public sector industrial relations has been transferred to the Commonwealth. Despite some industrial unrest, and occasional successes, public sector unions have been unable to fend off this ideological assault on traditional patterns of public sector employment.     

The Changing Face of Public Sector Employment

While it is easy, and almost a national sport, to criticise the traditional model of public sector employment as being too generous, there is a rationale for its distinctiveness. The career service model that endured for most of the last century was aligned to the bureaucratic form of public administration of that time. As public administration was 'transformed' into public sector management through the importing of private sector techniques, so too has public sector employment been varied in pursuit of greater efficiency, flexibility and responsiveness.     

Explaining the size of the public sector

This paper aims at providing an explanation for the size of the public sector based on the idea of “social insurance”. The main assumption made is that the public sector is less efficient but also less volatile than the private sector. The “demand-driven” level of the public sector that is derived as the one that maximizes the utility of the representative employed consumer depends positively on the variance of private output. An increase in the size of the public sector has a positive effect on expected employment and a negative effect on expected consumption. The size of the public sector set by the government which maximizes the probability of being re-elected will be higher than the “demand-driven” level if voters' preferences for employment is higher than the consumption loss associated with public employment.     

A Changing Public Sector: Developments at the Commonwealth Level

Over the last three decades the federal public sector has been the focus of government policies aimed at recasting federal public sector employment arrangements from a structure characterised by a considerable autonomy from government to a set of institutions more responsive to government direction; and more recently to a regime marked by considerable operational autonomy within a framework of substantive and substantial government control. These developments had the consequence of promoting a more explicitly managerial employment framework and a more individualised workforce. As part of this process the federal public sector was reorganised as a series of agencies. These 'managerial agents' of governments were authorised to secure more effective employee compliance with these changes. A key element in this process is the response of public sector unions to these developments and the way they have both contributed to, and been affected by, the construction of a more explicitly managerial public sector.     

Public Service Motivation: A Test of the Job Attraction–Selection–Attrition Model

ABSTRACT

Public service motivation (PSM) research suggests that PSM influences employee sector choice, yet relatively little research examines how time moderates this relationship. In this research we examine public service motivation among private and public sector lawyers. Using survey data that measure sector of employment at multiple time periods, we investigate the stability of the relationship between individual reward orientations and sector employment choice over time. Our findings suggest that while PSM may not clearly predict the employment sector of a respondent's first job, it does increase the likelihood that a respondent's subsequent job is in the public sector.     

Public Service Motivation and Attraction to Public Versus Private Sector Employment: Academic Field of Study as Moderator?

ABSTRACT

Despite extensive public service motivation (PSM) research, our knowledge of PSM's influence on individuals’ sector employment preferences is limited. Few studies examine this relationship by suitable research designs, and the empirical findings are mixed. Using a sample of 718 Danish students of economics, political science, and law, this article tests (1) the relationship between PSM and attraction to public versus private sector employment and (2) the moderating effect on this relationship of students’ academic field of study. Overall, results underscore the multidimensionality of the PSM construct, as the PSM dimension of “public interest” is positively associated with attraction to public sector employment and negatively associated with attraction to private sector employment, while the PSM dimension of “compassion” is unrelated to both. Importantly, however, moderation analyses reveal notable correlation differences across students’ academic fields. Implications of these findings are discussed in the context of prior and future research.     

Victoria: Rolling Back – or Reinventing – the Kennett Revolution?

The election of the Kennett government in 1992 heralded an era of unprecedented change in public sector employment and industrial relations in Victoria. The Employee Relations Act 1992 and the Public Sector Management Act 1992 redefined the public sector in Victoria and the relationship, both collective and individual, of public sector employees with government. In October 1999 the Kennett government unexpectedly lost office. But despite its pre-election rhetoric promising a return to more conventional arrangements, there is little indication that the Bracks government intends to significantly dismantle the Kennett legacy in public sector employment and industrial relations.     

Public and private sector wages interactions in a general equilibrium model

It is common wisdom that public sector wages are not determined in the same way as private sector wages. At the same time, the empirical evidence available for OECD countries finds a strong positive correlation between public and private sector wages. In this paper, we develop a model that is consistent with a political economy view of the determination of public sector wages and employment, while being consistent with the said empirical evidence. Public finance constraints are crucial: In booms, governments expand employment and wages, while in downturns, lack of tax revenues forces the government to cut back the wage bill.     

Comparing Affective Commitment in the Public and Private Sectors: A Comprehensive Test of Multiple Mediation Effects

Employees’ organizational commitment is associated with a number of positive outcomes, such as employee motivation, job satisfaction, productivity, and retention. But previous research has suggested that there may be important sector differences in both commitment and its explanations, yet results are very mixed. We study sector differences in affective organizational commitment among 1,043 public and private office workers who perform very similar tasks across sectors, testing the influence of factors thought to explain commitment and expected to vary between the sectors. We propose that the mixed results are due to different variables mediating the relationship between sector and organizational commitment. Conducting a multiple mediation analysis, we find that more hierarchy negatively mediates the relationship between public sector employment and organizational commitment. On the other hand, the relationship between public sector employment and organizational commitment is positively mediated by public service motivation and participatory management. This highlights the importance of not only studying simple sector differences, but also including relevant individual and organizational-level variables that can explain the mechanisms behind such differences.     

Intergenerational transfers of public sector jobs: a shred of evidence on nepotism

The attractiveness of public sector jobs in Italy may induce parents working in this sector to use their positions and the network of relationships to favor their sons/daughters in gaining access to public sector jobs. We verify whether children of public employees effectively enjoy an advantage, estimating a model of the probability of working in the public sector controlling for individual characteristics and labor market conditions. We show that if the father is a public employee the probability of his child working in the same sector is increased by a huge 44%. This advantage is larger for low-ability individuals, “stayers” and Southern Italian residents. We interpret these findings as evidence of nepotism in public employment.     

The Queensland Public Sector: Recent Developments in Employment Relations

With the incumbent Labor government embracing a recentralisation of industrial relations, public sector agencies in Queensland are experiencing a dramatic shift in the framework of employment relations. This paper discusses the approach of the previous Coalition government to managing the public sector workforce and the emerging approach of the Labor government. The comparison of contrasting governmental approaches to public sector employment relations throughout the 1990s suggests that successive governments have balanced very differently the three main pressures they have faced: political, managerialist and industrial relations.     

Public Officials,Government and the Public Trust: Schizophrenia?

In late 1996 the Queensland government introduced new legislation to govern its public sector, the Public Service Act 1996. For a few short weeks the supposedly draconian legislation was front-page news, as the government was forced to defend its changes to standards of accountability in public sector employment. Was the fuss a storm in a teacup? Were the changes really so significant? In this article the impact of the legislation upon the central core of public sector employment, the public trust, is considered, and the legislation's interrelationship with the Queensland public sector ethics regime is analysed. These unhappy people were proposing schemes for persuading monarchs to choose favourites upon the score of their wisdom, capacity and virtue; of teaching ministers to consult the public good; of rewarding merit, great abilities and eminent services; of instructing princes to know their true interest by placing it on the same foundation with that of their people: of choosing for employment persons qualified to exercise them; with many other wild chimeras, that never entered before into the heart of man to conceive, and confirmed in me the old observation, that there is nothing so extravagant and irrational which some philosophers have not maintained for truth (Jonathan Swift, Gulliver's Travels).     

US state government privatization: Implications for social equity and inequality?

Privatization of state government services is commonplace, but our understanding of its effects is limited by data availability. We study the relationship between American state government contracting and public sector wages. Governments have used public sector employment to support a variety of goals, including social equity and economic development, but privatization, as a new public management (NPM) reform, may shift the focus. Our empirical analysis shows that state privatization of service delivery is associated with decreases in the public sector wage premium, but that these effects are not driven by gender, race, or low-levels of educational attainment. The fidelity of the implementation to NPM values conditions these effects. We also find that contracting service delivery is associated with a lower public sector wage premium for middle-class workers.     

The impact of sector employment on party choice: A comparative study of eight West European countries

Abstract.  In this article, the impact of sector employment on party choice in eight West European countries is examined. The empirical analysis is organised into three parts. First, the impact of sector on party choice treated as a nominal-level variable is analysed. Then the impact of sector within various social classes is focused upon, and finally sector employment is considered in relation to the division between socialist and non-socialist parties. The impact of sector employment is large in Denmark; moderate in Britain, France and Italy; small in Belgium, Germany and the Netherlands; and insignificant in Ireland. The impact of sector employment is much greater within the service class than any of the other social classes. The party families of the left, and also the greens, get stronger support from the public employees, while the main party families among the non-socialist parties, apart from the Christian Democrats, get strongest support from private-sector employees. Sector employment is most strongly correlated with socialist/non-socialist party division in Denmark followed by France and Britain, with only minor or insignificant correlation in the other countries.     

The Appointment, Removal and Responsibilities of Public Sector Chief Executives in Australia: Some Recent Developments

In the little over the decade since the publication of Smith's Public Employment Law and McCarry's Aspects of Public Sector Employment Law, much as changed in the law of public sector employment in Australia. This article briefly surveys some of the major developments in public sector employment law in Australia during the 1990s in relation to departmental chief executive departmental heads.     

Public–Private Partnerships in Urban Infrastructures: Reconciling Private Sector Participation and Sustainability

The speed and scale of urbanization provide serious challenges for governments all over the world with regard to the realization, maintenance, and operation of public urban infrastructures. These infrastructures are needed to keep up with living standards and to create conditions for sustainable development. The lack of public funds and the inefficiencies of public service provision have given rise to initiatives to stimulate private parties to invest their resources in public urban infrastructures. However, private sector participation creates a whole range of new challenges. The potential benefits are countered by concerns about the compatibility of the private sector's focus on short-term return on investment with the long-term perspective needed to realize sustainability targets. On the basis of a review of literature on experiences with private sector participation in urban infrastructure projects, this article identifies governance practices that help or hinder the reconciliation of private sector participation in urban infrastructure projects with the objective to increase the sustainability of the urban environment.     

Bureaucratic Behavior in the Local Public Sector: A Revealed Preference Approach

Public sector bureaucratic utility is typically assumed to be a function ofbudget size or government employment. Although intuitively appealing, thereare no definitive direct tests of the assumption. To fill this gap, thispaper exploits data that isolate resource allocation decisions made by localpublic sector bureaucrats. We use revealed preference theory to find thatthe bureaucracy behaves ``as if'' bureaucratic utility is an increasingfunction of employment across government functions and public spending,providing direct evidence justifying the popular assumption in theoreticalmodels of government behavior.     

THE PRIVATE SECTOR IN PUBLIC EMPLOYMENT AND TRAINING PROGRAMS

Assimilating disadvantaged workers in labor markets has been the focus of national policy initiatives for at least two decades. In recent years, public policies have been formulated which will not only provide incentives for the private sector to employ the disadvantaged, but also afford the private sector a larger responsibility in formulating and implementing targeted employment programs. The Job Training Partnership Act (JTPA) and Target Jobs Tax Credit (TJTC) are two major examples. This paper initially reviews the public and private employment and training efforts between 1962 and 1982. Considerable attention is given to summarizing and evaluating the performance of these efforts, especially in light of recent program initiatives by the Reagan Administration.