Does State and Local Government Employment Promote Tax Revenue Stability? A Look at Kentucky Cities
Year of Publication
Martin School of Public Policy and Administration
Master of Public Administration
Dr. Iuliia Shybalkina
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.
Pennington, William Ryan, "Does State and Local Government Employment Promote Tax Revenue Stability? A Look at Kentucky Cities" (2020). MPA/MPP/MPFM Capstone Projects. 399.