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Title:The crowding out effect in a developing country's labour market: evidence from Zimbabwe
Author:Ncube, M.ISNI
Periodical:South African Journal of Economics
Geographic term:Zimbabwe
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2001.tb00022.x/pdf
Abstract:Zimbabwe has experienced rapid employment growth in the public sector and concomitantly poor job creation in the private sector. Bloated public sector employment is a fairly general problem in developing countries and in this paper the author attempts to make a contribution to the discussion of its stultifying effects on the private sector employment by applying a standard employment model modified by including public sector employment as an independent variable. The result provides strong support for the hypothesis that public sector job creation has crowded out private sector employment. Zimbabwe has high unemployment and using the government as an 'employer-of-last-resort' may not prove sustainable. Bibliogr., notes, ref.