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 … set up a search and matching model that contains a government sector and a role for government spending in product markets …

explanation for several seemingly unrelated facts about employment growth in macro and micro data. In particular, they generate … of employment growth to TFP shocks estimated from Census data induce significant skewness, movements in volatility and …

We document three changes in postwar US macroeconomic dynamics: (i) the procyclicality of labor productivity has … vanished, (ii) the relative volatility of employment has risen, and (iii) the relative (and absolute) volatility of the real …