PUBLIC-SECTOR EMPLOYMENT, COMPETITION, AND GOVERNMENT SIZE

The hypothesis that government employees exert an influence on government size is examined. Empirical analysis of federal, state, and local governments in the United States over 1970-1985 finds that, the more centralized the government workforce, ceteris paribus, the larger government tends to be. The fact that previous research excludes the federal sector from definitions of political markets may explain why they find little or no support for the centralization hypothesis. The evidence is consistent with an emphasis on other factors (e.g., agenda and information control) with which government employees may influence government size.