The Employment Impact of Green Fiscal Push: Evidence from the American Recovery Act

David Popp, Francesco Vona, Giovanni Marin and Ziqiao Chen

No 27321, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We evaluate the employment effect of the green part of the largest fiscal stimulus in recent history, the American Recovery and Reinvestment Act (ARRA). Each $1 million of green ARRA created 15 new jobs that emerged especially in the post-ARRA period (2013-2017). We find little evidence of significant short-run employment gains. Green ARRA creates more jobs in commuting zones with a greater prevalence of pre-existing green skills. Nearly half of the jobs created by green ARRA investments were in construction or waste management. Nearly all new jobs created are manual labor positions. Nonetheless, manual labor wages did not increase.

JEL-codes: E24 E62 H54 H72 Q58 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
Note: EEE
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Citations: View citations in EconPapers (24)

Published as David Popp & Giovanni Marin & Francesco Vona & Ziqiao Chen, 2022. "The Employment Impact of a Green Fiscal Push: Evidence from the American Recovery and Reinvestment Act," Brookings Papers on Economic Activity, vol 2021(2), pages 1-69.

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Working Paper: The Employment Impact of Green Fiscal Push: Evidence from the American Recovery Act (2020)
Working Paper: The Employment Impact of Green Fiscal Push: Evidence from the American Recovery Act (2020)
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