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...

Poorer economies tend to have higher working hours per adult due to the incomeeffect. However, when controlling for resource abundance and public sectoremployment, the income effect weakens. We present a simple model to explainthis phenomenon: in resource-rich economies where income is volatile...

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...