Tepe & Vanhuysse (2012), Accelerating smaller cutbacks - What do they conclude?

Tepe and Vanhuysse (2012) concluded that smaller cutbacks in public employment, such as reduced hiring or temporary layoffs, are a more effective and efficient strategy of managing public deficits than large-scale layoffs or cuts to wages and benefits. They argued that smaller cutbacks can achieve the same budgetary and economic objectives as more drastic measures such as wage cuts, but with fewer disruptions to service delivery and social and political stability. Furthermore, they contended that smaller cutbacks could maximize short-term and long-term savings, increase government efficiency and encourage more effective and efficient labor management.