The Dynamics of Relief Spending and the Private Urban Labor Market During the New Deal

• 成果类型: Article
• 署名作者: University of California System; University of California Merced; University of Arizona
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050710000100
• 发表日期: 2010
• 页码: 195-220
• 关键词: work; unemployment

摘要

We examine the dynamic relationships between relief spending and local private labor markets using a panel data set of relief, private employment, and private earnings. Positive shocks to relief during the First New Deal were followed by increased private employment and earnings, consistent with demand stimulus in that period. On the other hand, increases in work relief spending during the Second New Deal were followed by decreased employment and increased earnings, consistent with crowding out. The timing of spending is consistent with claims that the Roosevelt administration used relief spending to sway elections.