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The great recession and job loss spillovers: impact of tradable employment shocks on supporting services

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Listed:
  • Ha Nguyen

    (The World Bank)

  • Shawheen Rezaei

    (Rx4good)

  • Divya Agarwal

    (Stanford University)

Abstract

This paper explores the spillover effects of job losses via input–output linkages during the Great Recession. Exploiting exogenous variation in tradable employment shocks across US counties, the paper finds that job losses in a county’s tradable industries cause further job losses in the county’s supporting services. A 10% exogenous decline in tradable employment reduces supporting industries’ employment by 3.1%. In addition, a county’s regional supporting services are relatively less affected by its tradable job losses than its local supporting services, reinforcing the argument that the spillovers are due to input–output linkages.

Suggested Citation

  • Ha Nguyen & Shawheen Rezaei & Divya Agarwal, 2022. "The great recession and job loss spillovers: impact of tradable employment shocks on supporting services," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 789-815, June.
    • Handle: RePEc:spr:anresc:v:68:y:2022:i:3:d:10.1007_s00168-021-01104-8
    DOI: 10.1007/s00168-021-01104-8
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    Cited by:

    1. Nguyen,Ha Minh, 2015. "Demand-driven propagation : evidence from the great recession," Policy Research Working Paper Series 7456, The World Bank.
    2. Béla Galgóczi & Philippe Pochet, 2022. "Introduction. Welfare states confronted by the challenges of climate change: a short review of the issues and possible impacts," Transfer: European Review of Labour and Research, , vol. 28(3), pages 307-316, August.
    3. Nguyen,Ha Minh & Nguyen,Huong, 2016. "Unemployment and mortality : evidence from the great recession," Policy Research Working Paper Series 7603, The World Bank.

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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