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Government spending and job creation at highway construction firms: evidence from Texas

Author

Listed:
  • Viplav Saini

    (Oberlin College)

  • Dakshina G De silva

    (Lancaster University)

Abstract

Merging procurement auction data with an employment dataset for highway construction firms in Texas, we provide evidence on the link between government construction spending and firm-level job creation in the highway construction industry during 1999-2006. Our results suggest that firms expand the size of their workforce to account for larger backlogs of work when more contracts are auctioned. An increase in annual procurement spending will therefore likely spur aggregate job creation in the industry.

Suggested Citation

  • Viplav Saini & Dakshina G De silva, 2015. "Government spending and job creation at highway construction firms: evidence from Texas," Economics Bulletin, AccessEcon, vol. 35(1), pages 204-213.
    • Handle: RePEc:ebl:ecbull:eb-14-00707
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P23.pdf
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    References listed on IDEAS

    as
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    2. Hickman Brent R. & Hubbard Timothy P. & Sağlam Yiğit, 2012. "Structural Econometric Methods in Auctions: A Guide to the Literature," Journal of Econometric Methods, De Gruyter, vol. 1(1), pages 67-106, August.
    3. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    highway construction; procurement auction; job creation;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction

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