Raises and cuts in public sector salaries have a direct effect on the private sector

Friday, November 4, 2011 - 10:00 in Earth & Climate

A joint study of the Bank of Spain and the Pablo de Olavide University (UPO) confirms that public salaries are clearly influential throughout the whole of Europe's economy. For the study, researchers chose a representative sample of four EU countries: Italy, Spain, Germany and France. According to the Organisation for Economic Cooperation and Development (OECD), the public sector employs an average of 20% of Europe's working population.

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