Public Employment and the Business Cycle*
在搜索与匹配模型中引入公共就业部门，研究公共工资和就业政策对经济周期的影响，发现公共部门的存在加剧了就业和产出的波动。
Abstract We add a public employment sector to the basic search and matching model in order to study the business cycle impact of public wage and employment policies. The government is assumed to follow exogenous rules for public wages and employment calibrated to match some cyclical features of US policies. These features include a positive public wage premium and mildly procyclical public wages and employment. We find that the presence of the public sector increases the volatility of employment and output.