vanished, (ii) the relative volatility of employment has risen, and (iii) the relative (and absolute) volatility of the real …

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 … generate wage-reducing and stabilizing effects of public employment. Without this mechanism, a search and matching model cannot …