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Investing in Care: A Strategy for Effective and Equitable Job Creation

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  • Rania Antonopoulos
  • Kijong Kim
  • Tom Masterson
  • Ajit Zacharias

Abstract

Massive job losses in the United States, over eight million since the onset of the "Great Recession," call for job creation measures through fiscal expansion. In this paper we analyze the job creation potential of social service–delivery sectors-early childhood development and home-based health care-as compared to other proposed alternatives in infrastructure construction and energy. Our microsimulation results suggest that investing in the care sector creates more jobs in total, at double the rate of infrastructure investment. The second finding is that these jobs are more effective in reaching disadvantaged workers-those from poor households and with lower levels of educational attainment. Job creation in these sectors can easily be rolled out. States already have mechanisms and implementation capacity in place. All that is required is policy recalibration to allow funds to be channeled into sectors that deliver jobs both more efficiently and more equitably.

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Bibliographic Info

Paper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_610.

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Date of creation: Aug 2010
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Handle: RePEc:lev:wrkpap:wp_610

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Related research

Keywords: Social Care; Job Creation; Fiscal Expansion; Distribution; Infrastructure;

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References

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  1. Ajit Zacharias & Thomas Masterson & Kijong Kim, 2009. "Distributional Impact of the American Recovery and Reinvestment Act-- A Microsimulation Approach," Economics Working Paper Archive, Levy Economics Institute wp_568, Levy Economics Institute.
  2. International Monetary Fund, 2010. "Deconstructing the International Business Cycle," IMF Working Papers 10/239, International Monetary Fund.
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Cited by:
  1. Rania Antonopoulos, 2013. "Expanding Social Protection in Developing Countries: A Gender Perspective," Economics Working Paper Archive, Levy Economics Institute wp_757, Levy Economics Institute.
  2. Dimitri B. Papadimitriou & Greg Hannsgen & Gennaro Zezza, 2011. "Is the Recovery Sustainable?," Economics Strategic Analysis Archive, Levy Economics Institute sa_dec_11, Levy Economics Institute.
  3. Rania Antonopoulos, 2013. "From Safety Nets to Economic Empowerment: Is There Space to Promote Gender Equality in the Evolution of Social Protection?," Economics Public Policy Brief Archive ppb_128, Levy Economics Institute.
  4. Dimitri B. Papadimitriou & Greg Hannsgen & Michalis Nikiforos, 2013. "Is the Link between Output and Jobs Broken?," Economics Strategic Analysis Archive, Levy Economics Institute sa_mar_13, Levy Economics Institute.
  5. Kijong Kim & Rania Antonopoulos, 2011. "Unpaid and Paid Care: The Effects of Child Care and Elder Care on the Standard of Living," Economics Working Paper Archive, Levy Economics Institute wp_691, Levy Economics Institute.

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