Public Wages, Public Employment, and Business Cycle Volatility: Evidence From U.S. Metro Areas
Working Paper, 2016 (with Claire A. Boeing-Reicher, R&R: Review of Economic Dynamics)
Based on data from a cross section of U.S. metro areas, we show that public employment correlates negatively with business cycle volatility, hinting at a stabilizing effect of public employment, while public wages correlate weakly and positively with business cycle volatility, hinting at a destabilizing effect of public wages.
Public Employment Policies and Regional Unemployment Differences
Regional Science and Urban Economics, Vol. 63, March 2017, Pages 1–12
This paper contributes to the existing literature on public employment showing that the wage setting policy of the public sector can be an important determinant of private employment and unemployment.