This article discusses public sector reform in North America and Western Europe. The argument is made that recent comparative literatures have yet to adequately consider governments themselves, and how changes to their budgeting, operation, and collective bargaining structures have affected jobs and income inequality. Drawing on a range of recent OECD and trade union statistics, as well as qualitative studies, it is claimed that governments converged substantially over period 1990–2005, introducing fiscal austerity measure and making substantive changes to public sector management and operation through privatization, marketization, and public-private partnerships. These substantially recast public sector industrial relations and led to job loss, labour market segmentation, and declining public sector labour power. This is the first study to report on comparative changes and qualitative reforms to fiscal policies, public sector services, and public sector labour forces in 13 OECD countries between 1980–2005.
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