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New Estimates of the Impact of EDA Public Works Program Investments on County Labor Markets

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  • Andrew F. Haughwout

    (Princeton University)

Abstract

The U.S. Department of Commerce’s Economic Development Administration (EDA) makes public works investments in distressed areas throughout the nation. In this study, these investments are found to have significantly positive effects on county employment levels after controlling for a variety of geographic, economic, and demographic factors. The investments have no significant effect on employee compensation. The estimates indicate that EDA public works investment provides counties with jobs at relatively low cost, suggesting that such investments are an effective means of job creation and retention in targeted counties. The article’s final section qualifies this conclusion somewhat, discussing the possibility that EDA investments act as a proxy for a coordinated local economic development strategy and evaluating the potential benefits of ameliorating regional decline.

Suggested Citation

  • Andrew F. Haughwout, 1999. "New Estimates of the Impact of EDA Public Works Program Investments on County Labor Markets," Economic Development Quarterly, , vol. 13(4), pages 371-382, November.
    • Handle: RePEc:sae:ecdequ:v:13:y:1999:i:4:p:371-382
    DOI: 10.1177/089124249901300410
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    References listed on IDEAS

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    Cited by:

    1. Chester J. Straub Jr. & Kelly Robinson, 2000. "Response to Thornburgh and Hill: The Federal Role in Economic Development," Economic Development Quarterly, , vol. 14(3), pages 257-266, August.
    2. Kwideok Han & Brian Whitacre & Inbae Ji, 2020. "Estimating the Impacts of EDA Public Works Program Investments on County Employment," Economic Development Quarterly, , vol. 34(3), pages 283-293, August.
    3. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O'Brien & Claudette Robey & James Robey, 2011. "What Should EDA Fund? Developing a Model for Preassessment of Economic Development Investments," Economic Development Quarterly, , vol. 25(1), pages 65-78, February.
    4. Pender, John & Reeder, Richard, 2011. "Impacts of Regional Approaches to Rural Development: Initial Evidence on the Delta Regional Authority," Economic Research Report 262240, United States Department of Agriculture, Economic Research Service.
    5. Jeremy L. Hall, 2010. "The Distribution of Federal Economic Development Grant Funds: A Consideration of Need and the Urban/Rural Divide," Economic Development Quarterly, , vol. 24(4), pages 311-324, November.
    6. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O’Brien & Claudette Robey & Jim Robey, 2009. "What Should EDA Fund? Developing a Model for Pre-Assessment of Economic Development Investments," Upjohn Working Papers 09-155, W.E. Upjohn Institute for Employment Research.

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