Rebecca M. Blank considers how the flexibility of American labor markets and the regulation and redistribution policies of European labor markets may determine employers' responses to worldwide economic transformations that result in increasing wage disparity in the United States and continuing...

This paper investigates whether a larger public sector limits labor market adjustment, using data from the United States and the United Kingdom, two countries with quite different public/private employment trends. The results indicate that the two countries have a similar mix of occupations and...