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Estimates of employment gains attributable to beer legalization in spring 1933

Author

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  • Poelmans, Eline
  • Taylor, Jason E.
  • Raisanen, Samuel
  • Holt, Andrew C.

Abstract

In April 1933, eight months prior to the end of Prohibition, states within the US gained the ability to legalize 3.2 percent alcohol beer. Proponents of legalization predicted that the brewer's dray would bring jobs along with beer. We estimate that legalization brought around 81,000 jobs between April and June of 1933, 60,000 of which were created in April, when the nation emerged from the trough of the Great Depression. This suggests that around 5.6 percent of nationwide non-agricultural spring employment gains, and around 15 percent of April job gains, were associated with beer legalization. Thus, this very early New Deal policy played an important supporting role in helping the nation turn the corner toward recovery.

Suggested Citation

  • Poelmans, Eline & Taylor, Jason E. & Raisanen, Samuel & Holt, Andrew C., 2022. "Estimates of employment gains attributable to beer legalization in spring 1933," Explorations in Economic History, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:exehis:v:84:y:2022:i:c:s0014498321000498
    DOI: 10.1016/j.eeh.2021.101427
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    References listed on IDEAS

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    Cited by:

    1. Jacks, David S. & Pendakur, Krishna & Shigeoka, Hitoshi, 2023. "Urban mortality and the repeal of federal prohibition," Explorations in Economic History, Elsevier, vol. 89(C).

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    More about this item

    Keywords

    Legalization; Beer; Great depression; New deal; Recovery; Employment;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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