Towards Explaining Growth of Private and Public services
Author:Metka Stare and Andreja Jaklič
JEL:L80, L16, O41, O43
DOI:
Keywords:employment growth, tertiarisation, public services, private services, transition
Abstract:
The employment in public and private services in Emerging Market Economies (EME) has
undergone disparate patterns of change during the transition. The paper reveals the main
determinants of employment growth in different service groups in the period 1995-2008.
Standard variables (per capita income, productivity gap and government expenditure)
provide insufficient explanation for the increasing share of services employment while
transition reforms indicators exert statistically significant influence. Estimations differ
substantially for public, mixed and private services. Deviations from the theoretical
framework and patterns in developed economies are observed that need to take into account
path dependency of the convergence process of emerging market economies in major
service groups. The findings are inconclusive and call for the extension of research towards
additional explanatory factors and improvement of data set.