Is Irish public sector employment a burden?

Abstract

In Ireland at the time of writing, strenuous efforts are being made to reduce the numbers at work in the public sector. Employment cuts of one form or another in health, education and public administration make news almost daily. This is not altogether surprising, since Irish economists have, for a generation, been warning of the disasters which are likely to be caused by the growth of public sector employment. As a result, it came to be believed that the Irish public sector was much too big and growing at an almost uncontrollable rate. The consequences of this were expected to be high unemployment, reduced employment in the non-government sectors, and a slowing of economic growth. The main reason for these effects was held to be the unbearable tax burden imposed by the public sector. However, the growing political power of the public sector and the draining of talent from the 'productive1 private sector were also feared.