Government spending and job creation at highway construction firms: evidence from Texas

Viplav Saini and Dakshina De Silva

Economics Bulletin, 2015, vol. 35, issue 1, 204-213

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.

Keywords: highway construction; procurement auction; job creation (search for similar items in EconPapers)
JEL-codes: H5 L7 (search for similar items in EconPapers)
Date: 2015-03-11
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