The Municipal Wage and Employment Effects of Public Infrastructure

Kevin T. Duffy-Deno and Douglas Dalenberg
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Kevin T. Duffy-Deno: Utah Division of Energy. University of Montana, Missoula, MT 59812, USA

Urban Studies, 1993, vol. 30, issue 9, 1577-1589

Abstract: We empirically examine the relationship between public capital and municipal employment levels and changes using a sample of 48 large US cities during the 1970-80 period. We find greater stocks of public capital are associated with a higher demand for and supply of municipal workers. Holding all other factors constant, the effect of a 10 per cent greater level of per capita public capital stock is a 0.6 and 12.9 per cent higher demand for and supply of municipal workers in the short run. Reduced form estimates indicate a net positive effect on municipal employment but no net effect on municipal wages. These findings are supported by a fixed-effect model estimation.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:30:y:1993:i:9:p:1577-1589

DOI: 10.1080/00420989320081511

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