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Abstract Public sector employment has been expanding in recent years， and the trend of human resources concentration in the public sector has become more and more obvious. Theoretical analysis shows that the higher the share of public sector employment increases， the more likely the private sector wage bill will be crowded out when social output falls， and the equilibrium wage will be more likely to reach the institutional constraints and thus generate greater rigidity. Wage rigidity in the private sector can weaken the function of price regulation and increase economic volatility. In order to coordinate the employment relationship between the public and private sectors， we should focus on improving the quality of employment in the private sector. To achieve this， we need to strengthen the foundation of the development of the private economy， insist on anti-monopoly， oppose the disorderly expansion of capital， and improve the developmental environment of the private economy. At the same time， we should accelerate the reform of public sector employment mechanism， especially the reform of the mechanism of recruiting labor， by introducing competition mechanism as well as curbing the unreasonable wage increase.
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Received: 21 November 2022
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2022, Vol. 61 
