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More Budget Belt-Tightening Means More Job Losses for States

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Listed:
  • Matt Sherman

Abstract

This paper looks at the problem of state budget shortfalls during the recession and calculates the number of jobs that would be lost (nationally and by state) if states utilize pro-cyclical spending cuts in an attempt to balance their budgets. This is an update to an earlier paper from December 2008, "Will Workers Survive State Budget Belt-Tightening?"

Suggested Citation

  • Matt Sherman, 2009. "More Budget Belt-Tightening Means More Job Losses for States," CEPR Reports and Issue Briefs 2009-34, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2009-34
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    File URL: http://www.cepr.net/documents/publications/state-budgets-2009-09.pdf
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    More about this item

    Keywords

    economic stimulus; fiscal stimulus; recession; ARRA; unemployment;
    All these keywords.

    JEL classification:

    • H - Public Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • I - Health, Education, and Welfare
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • E - Macroeconomics and Monetary Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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