The Employment Effects of Countercyclical Infrastructure Investments

Lukas Buchheim and Martin Watzinger

No 6383, CESifo Working Paper Series from CESifo

Abstract: We estimate the causal impact of a sizable German infrastructure investment program on employment at the county level. The program focused on improving the energy efficiency of school buildings, making it possible to use the number of schools as an instrument for investments. We find that the program was effective, creating one job for one year for each €25’000 of investments. The employment gains reached their peak after nine months and dropped to zero quickly after the program’s completion. The reductions in unemployment amounted to two-thirds of the job creation, and employment grew predominately in the construction and non-tradable industries.

Keywords: infrastructure investments; job creation; employment dynamics; countercyclical fiscal policy (search for similar items in EconPapers)
JEL-codes: E24 E62 H72 J23 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-mac, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: The Employment Effects of Countercyclical Infrastructure Investments (2017)
Working Paper: The Employment Effects of Countercyclical Infrastructure Investments (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6383

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