Fiscal Transparency, Elections and Public Employment: Evidence from the OECD

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  • Lasse Aaskoven
There is considerable variation in levels and changes in public employment within and between developed democracies. This article highlights the importance of fiscal transparency in determining changes in public employment. It argues that economic growth increases public employment under low fiscal transparency and that this effect is strongest in years of election. These hypotheses are tested on a panel of 20 OECD countries from 1995 to 2010. The analyses show substantial evidence in favor of the arguments. Fiscal transparency lowers the positive effect of growth on public employment, a relationship, which is most robust in election years.
Original languageEnglish
Article number4
JournalEconomics & Politics
Volume28
Issue number3
Pages (from-to)317–341
ISSN0954-1985
DOIs
Publication statusPublished - Nov 2016

ID: 164346792