Local government employment relative to population increased about 70 percent during 1957-1977. The income "elasticity" for governmental employment was 1.56, and the "elasticity" for the public wage bill was 2.25 for the period. Average real pay per governmental employee decreased for each year from 1973 to 1977. The government employment-population ratio was higher and increased faster in metropolitan areas than in nonmetropolitan areas during 1957-1972. Employment relative to real income was lower in metropolitan areas. However, the metropolitan ratio increased 8 percent while the nonmetropolitan employment- income ratio fell 11 percent.