Governments, however, may also choose to regulate the size of the public sector in order to stabilize targeted national employment levels. However, economic research suggests that these effects are uncertain and critically depend on how public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect. Public employment also has important productivity and redistributive effects.
Governments, however, may also choose to regulate the size of the public sector in order to stabilize targeted national employment levels.
However, economic research suggests that these effects are uncertain and critically depend on how public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect.
Public employment also has important productivity and redistributive effects. Key findings Pros Expanding public sector employment can be an effective means of reducing unemployment in the short term, providing a stabilizing effect during recessions or in relatively disadvantaged regions.
Public sector employment can create demand in other sectors of the economy e. Cons Reducing short-term unemployment through expanding public sector employment can only occur when wages in the public sector are flexible according to productivity, rather than fixed.
High public sector employment may lower overall productivity in an economy that is reallocating resources from the private to the public sector, or from higher to lower productive sectors. Geographically homogeneous or time-rigid a-cyclical wages instead exacerbate unemployment.
Policymakers should thus promote flexible, pro-cyclical public sector wages. However, given the institutional structure of wage setting, it may be difficult to ensure flexible public sector wages, in which case policymakers should be aware that a policy that increases public sector jobs can generate higher total unemployment.
Governments also differ with respect to the amount of goods and services e. But is this always the case under any conditions, and to what extent? Empirical and theoretical evidence shows that those effects depend on how wages in the public sector are set. Discussion of pros and cons Public sector employment and the economy Governments can affect the private sector economy in a number of different ways.
One important, and relatively less studied way, is the effect that public sector employment policies can have on private sector employment and on unemployment. Key questions in this respect, and which are addressed in this contribution, are the following: What is the effect of public sector wage setting rules?
Can public sector employment policies stabilize total unemployment? Can the public sector boost an overall productivity?
In answering these questions it will be seen that public sector employment also has other important effects. These effects may be the anticipated results of deliberate policies put in place by governments, or alternatively they could be unforeseen and undesired effects created by the combination of the policy and the institutional framework within which it is implemented.
For example, through public sector employment policies governments can effectively increase the wages and employment level of disadvantaged groups, such as racial or ethnic minorities.
This could be the result of intentionally targeting these groups and giving them priority for public sector employment—an example of which is the affirmative action program in the US—though it may also be the result of simple and clear wage setting and hiring rules that allow less space for discrimination.
Public sector employment can also be a source of redistribution of resources. When, for example, governments create more public sector jobs in regions that are relatively less advantaged, with higher unemployment and lower wages, they may implicitly divert resources from the more advantaged regions of the same economy in order to pay for those jobs.
This arises when tax collection is relatively centralized and wages in the public sector are more homogeneous. Moreover, the creation of public sector jobs has important compositional effects, in terms of sectors of the economy. For example, when a hospital is built it will require a range of inputs from the private sector, in the form of building materials, desks, beds, and cleaning and catering services, thus creating demand in those sectors.
Finally, the public sector is more competitive with some sectors of the economy typically the tradable sector—whose output goods or services is traded internationally, or could be traded internationally given a plausible variation in relative prices—which is also generally more productive and more complementary with others typically the non-tradable sectors.
This implies a reallocation of resources that can lead to a negative effect on overall productivity i.
In tabular format, produce a profile of the lifelong learning sector with analysis of its scope and nature; to include: a) Analysis of the ways in which areas of the lifelong learning sector differ from other sectors b) Definition and evaluation of the roles of key relevant agencies which contribute from within the sector c) A glossary of terms. Unit 7 Assignment Tasks rev 1 yunusemremert.com Lifelong Learning Sector (QCF) impact of social cultural and economic differences on teaching and learning and achievement in your own specialist area Ways to challenge discriminatory practice through the approach to curriculum design Make sure you show the links between your . lifelong learning sector Analyse ways in which areas of the lifelong learning sector differ from other sectors Define and evaluate the roles of key relevant agencies within • Compare the lifelong learning sector with other educational sectors.
Public employment, private employment, and unemployment When considering the effect of the size of public sector employment on private sector employment, most recent research has found that higher levels of public sector employment lead to a reduction in private sector employment.
The reason for this is that the public sector competes for workers in the labor market with the private sector, and this competition leads to the private sector losing workers to the public sector.
There is evidence for this, both at the aggregate levels of countries, and at more disaggregated levels of regions and local markets.
At the aggregate level, a panel data analysis of OECD countries found that if a government hires one additional public sector employee it has a negative effect on private sector employment, reducing it by one and a half employees . However, this study also reports that a proportion of the displaced workers from the private sector become inactive i.
Therefore, the overall effect on unemployment is smaller, but nevertheless still positive, in that it increases unemployment. Similar findings are provided by another study looking at Swedish aggregate time-series data from to .
However, most interestingly, another study using OECD data has recently found that the correlation between private and public sector employment is not always negative and, in some countries, is actually positive .This “city of lifelong learning,” officially titled the South Bend Lifelong Learning System, is the first of its kind in the U.S.
The system’s digital portal will help South Bend citizens understand what skills are in demand in the area based on employer input; see where those skills are being taught (at local institutions or through.
The evidence for the crowding-out effect of public sector employment on private sector employment supports the hypothesis that the public sector competes with the private sector in the labor market for hiring workers.
The U.S. population and workforce have been growing older as the baby-boom generation ages; put another way, the workforce has become more evenly distributed across age groups. the job losses will be counterbalanced by employment gains in other sectors.
Implications of Trends Greater emphasis will be placed on retraining and lifelong. How do qualifications systems in different countries act as incentives or disincentives to lifelong learning?
cost, in the case of discontinuation of employment this can be a major factor. Costs differ not only for different areas of lifelong learning, but also between population groups.
on the basis of cluster analysis or any other. Unit Roles, responsibilities and relationships in lifelong learning Task A: Research Report a) As Gravells (, pp) states, the legislation, regulatory requirements and codes of practice relevant to a teacher in the lifelong learning sector will “differ depending upon the context and environment in which you teach”.
For example. Second, while there has been some research to disentangle the effects of public sector employment on private sector employment, both empirical and theoretical research on this is still quite scarce. More and better knowledge, for more countries, is required.