{"title":"The effect of the public work programme in Hungary on private sector wages","authors":"Lajos Tamás Szabó","doi":"10.1016/j.labeco.2026.102861","DOIUrl":null,"url":null,"abstract":"<div><div>I estimate the effect of Hungary’s public work (PW) programme on private sector wages using a fuzzy regression discontinuity design, exploiting variation in the share of public workers across small homogeneous labour markets. My results show that – in contrast to earlier results in the literature – the PW programme has a negative effect on private sector wages. The unprecedented result is due to the different institutional setting of the Hungarian programme compared to the previously examined ones. According to my estimates, between 2013 and 2017 a one percentage point increase in the share of public workers is associated with a 0.5% decrease in private sector wages among elementary occupations.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"99 ","pages":"Article 102861"},"PeriodicalIF":2.6000,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Labour Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0927537126000126","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2026/1/29 0:00:00","PubModel":"Epub","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
I estimate the effect of Hungary’s public work (PW) programme on private sector wages using a fuzzy regression discontinuity design, exploiting variation in the share of public workers across small homogeneous labour markets. My results show that – in contrast to earlier results in the literature – the PW programme has a negative effect on private sector wages. The unprecedented result is due to the different institutional setting of the Hungarian programme compared to the previously examined ones. According to my estimates, between 2013 and 2017 a one percentage point increase in the share of public workers is associated with a 0.5% decrease in private sector wages among elementary occupations.
期刊介绍:
Labour Economics is devoted to publishing research in the field of labour economics both on the microeconomic and on the macroeconomic level, in a balanced mix of theory, empirical testing and policy applications. It gives due recognition to analysis and explanation of institutional arrangements of national labour markets and the impact of these institutions on labour market outcomes.