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The Municipal Wage and Employment Effects of Public Infrastructure

Author

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  • Kevin T. Duffy-Deno

    (Utah Division of Energy. University of Montana, Missoula, MT 59812, USA)

  • Douglas R. Dalenberg

    (Department of Economics, University of Montana, Missoula, MT 59812, USA)

Abstract

We empirically examine the relationship between public capital and municipal employment levels and changes using a sample of 48 large US cities during the 1970-80 period. We find greater stocks of public capital are associated with a higher demand for and supply of municipal workers. Holding all other factors constant, the effect of a 10 per cent greater level of per capita public capital stock is a 0.6 and 12.9 per cent higher demand for and supply of municipal workers in the short run. Reduced form estimates indicate a net positive effect on municipal employment but no net effect on municipal wages. These findings are supported by a fixed-effect model estimation.

Suggested Citation

  • Kevin T. Duffy-Deno & Douglas R. Dalenberg, 1993. "The Municipal Wage and Employment Effects of Public Infrastructure," Urban Studies, Urban Studies Journal Limited, vol. 30(9), pages 1577-1589, November.
    • Handle: RePEc:sae:urbstu:v:30:y:1993:i:9:p:1577-1589
    DOI: 10.1080/00420989320081511
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    References listed on IDEAS

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    Cited by:

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    2. Michael L. Lahr & Rodrigo Duran & Anupa Varughese, 2004. "Estimating the Impact of Highways on Average Travel Velocities and Market Size," Urban/Regional 0403009, University Library of Munich, Germany.

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