datasets to test the hypotheses derived from our theoretical model. The main goal of this
dissertation is to analyze the role of fiscal decentralization policy on public sector
employment. Furthermore, we want to find out the determinants of public employment at
the central and subnational government levels and to the aggregate level as well. Besides,
we also want to detect whether there exists evidence of spatial effects in determining the
level of one country’s public sector employment. This dissertation consists of five
chapters. In the current chapter, we motivate the main topic of this research. In Chapter
Two, we review and summarize previous research on public sector employment and its
relationship with fiscal decentralization. In Chapter Three, we develop a theoretical
model to analyze the relationship between the degree of fiscal decentralization and public
sector employment level. In Chapter Four, we describe the dataset we use in this study
and present the empirical results based on the data we have. Chapter Five offers the
conclusion.