Abstract
The growth of the public sector that has continued nearly unabated since the end of World War II is coming to an end. This apparently will set the stage for a classic confrontation between public sector unions, vote-maximizing politicians, and the general public. Using an employment multiplier approach, we show that the conflict is largely illusionary. Because of a fortunate coincidence, retrenchment in the public sector is likely to be carried out so that no one group will be grievously offended.
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Spizman, L., Cicarelli, J. Unions, politicians, and the public interest: Retrenchment in the public sector. Journal of Labor Research 5, 413–418 (1984). https://doi.org/10.1007/BF02685091
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DOI: https://doi.org/10.1007/BF02685091