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

David Popp, Francesco Vona, Giovanni Marin, Ziqiao Chen

NBER Working Paper No. 27321
Issued in June 2020
NBER Program(s):Environment and Energy Economics

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.

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Document Object Identifier (DOI): 10.3386/w27321

 
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