Place-based consequences of person-based transfers: Evidence from recessions

• 成果类型: Article
• 署名作者: Hershbein, Brad; Stuart, Bryan A.
• 署名单位: W.E. Upjohn Institute for Employment Research; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.104923
• 发表日期: 2023
• 关键词: recessions; Safety net; Government transfers; demand shocks; local labor markets; event study

摘要

This paper studies how government transfers respond to changes in local economic activity that emerge during recessions. Local labor markets that experience greater employment losses during recessions face persistent relative decreases in per capita earnings. However, these areas also experience persistent increases in per capita transfers, which offset 16 percent of the earnings loss on average. The increase in transfers is driven by unemployment insurance in the short run, and medical, retirement, and disability transfers in the long run. Our results show that nominally place-neutral transfer programs redistribute considerable sums of money to places with depressed economic conditions. & COPY; 2023 Elsevier B.V. All rights reserved.