An Empirical Estimate of the Labor Response Function for Benefit-Cost Analysis

Donald Vitaliano

Journal of Benefit-Cost Analysis, 2012, vol. 3, issue 3, 12

Abstract: Since the seminal contribution of Haveman and Krutilla(1968), the subject of the potential drawdown from the pool of unemployed versus diversion of labor from existing employments consequent upon a public investment project has been largely neglected in the BCA literature. The advent of a new BLS series on job vacancies now permits direct estimation of the crucial unemployment-vacancies (U-V) relationship, as compared to the ad hoc sine function using the unemployment rate assumed by Haveman and Krutilla. The probability p of a worker being drawn from the pool of unemployed is recast as a function of the job vacancy rate (vacancies/labor force) and shows higher values than Haveman and Krutilla at comparable rates of unemployment. At the height of the 2008-09 Great Recession, about half of Stimulus induced jobs were drawn from the pool of unemployed.

Keywords: job creation; jobvacancies and unemployment (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/2152-2812.1119 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: An Empirical Estimate of the Labor Response Function for Benefit-Cost Analysis (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:jbcacn:v:3:y:2012:i:3:n:1

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/jbca/html

DOI: 10.1515/2152-2812.1119

Access Statistics for this article

Journal of Benefit-Cost Analysis is currently edited by Glenn C. Blomquist and William H. Hoy

More articles in Journal of Benefit-Cost Analysis from De Gruyter
Bibliographic data for series maintained by Peter Golla ().