Answer to Question #197417 in Microeconomics for Sinovuyo

Question

How can the public sector wage bill be controlled

Answer 1

Protecting lives and livelihoods should be a top priority. The wage bill would almost certainly rise as a result of short-term interventions. As a consequence, in the recovery and resilience process, fiscal consolidation, the removal of labor market distortions that may hinder private sector job growth, and an increase in public sector efficiency such that more outputs are generated per worker must be prioritized.