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The distributional effects of job loss from fiscal consolidation: Evidence from the Budget Control Act of 2011

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  • Komarek, Timothy M.
  • Wagner, Gary A.

Abstract

We leverage spending reductions from the Budget Control Act of 2011 to estimate the effect of fiscal consolidation on local employment. Overall job losses were modest and tilted more heavily toward educated individuals. Cost-per-job estimates range from $250,000–$500,000.

Suggested Citation

  • Komarek, Timothy M. & Wagner, Gary A., 2020. "The distributional effects of job loss from fiscal consolidation: Evidence from the Budget Control Act of 2011," Economics Letters, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s0165176520303141
    DOI: 10.1016/j.econlet.2020.109515
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    References listed on IDEAS

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    More about this item

    Keywords

    Federal contracting; Local labor market; Job displacement;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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