Using Difference-in-Differences estimation and data from the European Community Household Panel, this paper suggests …

business cycle volatility, hinting at a stabilizing effect of public employment, while public wages correlate weakly and …Based on data from a cross section of U.S. metro areas, we show that public employment correlates negatively with … positively with business cycle volatility, hinting at a destabilizing effect of public wages. To explain these relationships, we …