Arbeitspapier
Public Wages, Public Employment, and Business Cycle Volatility: Evidence from U.S. Metro Areas
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. To explain these relationships, we set up a search and matching model that contains a government sector and a role for government spending in product markets. This latter mechanism affects how the outside option behaves, and this mechanism can help a search and matching model to generate wage-reducing and stabilizing effects of public employment. Without this mechanism, a search and matching model cannot generate these effects.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 9965
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Labor Force and Employment, Size, and Structure
- Thema
-
public employment
public wages
business cycle volatility
crowding out
search and matching
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Boeing-Reicher, Claire A.
Caponi, Vincenzo
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Boeing-Reicher, Claire A.
- Caponi, Vincenzo
- Institute for the Study of Labor (IZA)
Entstanden
- 2016
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