Government Spending and Job Creation at Highway Construction Firms: Evidence From Texas

Abstract

Merging procurement auction data with an employment dataset for highway construction firms in Texas, we provide evidence on the link between government construction spending and firm-level job creation in the highway construction industry during 1999-2006. Our results suggest that firms expand the size of their workforce to account for larger backlogs of work when more contracts are auctioned. An increase in annual procurement spending will therefore likely spur aggregate job creation in the industry.

Publisher

Economics Bulletin

Publication Date

1-1-2015

Department

Economics

Document Type

Article

Language

English

Format

text

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