Job creation in tight and slack labor markets

• 成果类型: Article
• 署名作者: Buchheim, Lukas; Watzinger, Martin; Wilhelm, Matthias
• 署名单位: University of Munich
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.02.006
• 发表日期: 2020
• 页码: 126-143
• 关键词: Local employment multiplier; State-dependent multiplier

摘要

Does investment create more jobs in slack than in tight labor markets? We study this question using data from a photovoltaic investment scheme. Comparing counties with high and low unemployment over time and across space, we find that (sic)100,000 of investment created 1.2 job-years in slack markets and fewer than 0.5 job-years in tight markets. This corresponds to labor earnings multipliers of 1.1 and below 0.5, respectively. These differences are not driven by changes in investment composition, capital-labor substitution, or regional migration. Consistent with crowding-out as a mechanism, investment leads to higher wage growth in tight than in slack markets. (c) 2019 Elsevier B.V. All rights reserved.