The Employment Effects of Countercyclical Infrastructure Investments

@inproceedings{Buchheim2017TheEE,
  title={The Employment Effects of Countercyclical Infrastructure Investments},
  author={Lukas Buchheim and Martin Watzinger},
  year={2017}
}
We estimate the causal impact of a sizable German infrastructure investment program on employment at the county level. The program focused on improving the energy efficiency of school buildings, making it possible to use the number of schools as an instrument for investments. We find that the program was effective, creating one job for one year for each €25’000 of investments. The employment gains reached their peak after nine months and dropped to zero quickly after the program’s completion… CONTINUE READING