Year of Publication



Martin School of Public Policy and Administration

Date Available


Degree Name

Master of Public Administration

Committee Chair

Dr. Iuliia Shybalkina

Executive Summary

Research shows that public sector jobs are more stable than private sector jobs. This study examines whether tax revenue volatility is affected by the concentration of a city’s economic base in state and local government employment. The relationship between public employment and revenue volatility has not been studied but is relevant as state and local governments have reduced their workforces in the post-Great Recession period. Using panel data on Kentucky cities, I find that the coefficient on state and local government employment concentration is inversely related to tax volatility but is not statistically significant in a fixed effects estimation.