Type
Working paper
Title
The Employment Impact of Green Fiscal Push: Evidence from the American Recovery Act : Evidence from the American Recovery Act
In
OFCE working paper
Author(s)
POPP David - Maxwell School of Citizenship and Public Affairs (Author)
VONA Francesco - Observatoire français des conjonctures économiques (Author)
MARIN Giovanni - Università degli Studi di Urbino Carlo Bo (Author)
CHEN Ziqiao - (Author)
Editor
Paris : OFCE
Collection
OFCE working paper : 22/2020
Keywords
Employment effect, Green subsides, American Recovery Act, Heterogeneous effect, Distributional impacts
Abstract
EN
We evaluate the employment effect of the green part of the largest fiscal stimulus in recent history, the American Recovery and Reinvestment Act (ARRA). Each $1 million of green ARRA created 15 new jobs that emerged especially in the post-ARRA period (2013-2017). We find little evidence of significant short-run employment gains. Green ARRA creates more jobs in commuting zones with a greater prevalence of pre-existing green skills. Nearly half of the jobs created by green ARRA investments were in construction or waste management. Nearly all new jobs created are manual labor positions. Nonetheless, manual labor wages did not increase.

BIBLIOGRAPHIC QUOTE
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