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Carlos Guevara Mann argues that Panamanian militarism, a consequence of the breakdown of legitimacy that occurred in the early nineteenth century, is more a manifestation of a deeply-rooted political tradition than an isolated phenomenon of the late twentieth century. He examines the variable US policy approach to domestic stability with the overall context of US hegemony in the isthmus and its shaping of Panamanian militarism.

Focusing on the causes that generated nineteenth-century predatory militarism, including political illegitimacy and US support, Guevara Mann analyzes the so-called professionalization of the armed forces — institutionalized militarism — and the polices developed by the 1968-89 military regime.

The author cautions that although Panamanian Defense Forces were abolished after the US invasion of December 1989, and although the state’s security apparatus has been placed under civilian direction, Panama’s stability remains threatened. Lack of legitimacy — the characteristic which informs military involvement in politics — still persists, and militarism could well reappear if the Panamanian polity fails to achieve legitimacy.

An estimated one out of five employees in this country works for some branch of government. Because policies concerning the compensation of these employees rest on assumptions about the economic dynamics of the public sector, the issue of public sector employment is of vital importance in the analysis of the national economy. In Public Sector Payrolls, leading economists explore the independent and interdependent functioning of the public and private sectors and their effect on the economy as a whole.

The volume, developed from a 1984 National Bureau of Economic Research conference, focuses on various labor issues in military and other governmental employment. Several contributors discuss compensation in the armed forces and its relationship to that in the private sector, as well as the interaction between the military and the private sector in the employment of youth. This latter is of particular interest because studies of youth employment have generally ignored the important influence of military hiring practices on labor market conditions. In other contributions, the response of wages and employment in the public sector to economic conditions is analyzed, and a detailed study of government pension plans is presented. Also included is a theoretical and empirical analysis of comparable worth in the public sector from the viewpoint of analytical labor economics. The volume concludes with a look at public school teachers' salaries in the context of current debates over improving the quality of American education.

A valuable resource to policymakers, Public Sector Payrolls will be an important addition to research in the field of labor economics.