NGO-State Wage Gap.pdf

MPRA_paper_66639.pdf
Preview of NGO-State Wage Gap
🔗 Source: mpra.ub.uni-muenchen.de
📊 Size: 392 KB
📄 Pages: 31 pages
⬇️ Downloads: 66

Summary

NGO employees in Afghanistan earn up to 35 times more than state employees, causing labor market distortions and threatening the state's fiscal sustainability. A general equilibrium model shows the wage gap can become permanent, locking the economy in a suboptimal equilibrium. To address this, three policy options are considered: capping NGO wages, raising government wages, or having NGOs contribute to a stabilization fund to support future wages and redress distortions, with the latter being the most desirable choice.

Description

NGO employees in Afghanistan earn up to 35 times more than state employees, causing labor market distortions and threatening the state's fiscal sustainability.

Technical Information

  • File Format: PDF
  • File Size: 392 KB
  • Pages: 31
  • Language: EN
  • Total Downloads: 66
  • Last Updated: 1 month ago

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