The Direct Employment Impact of Public Investment /

We evaluate the direct employment effect of the public investment in key infrastructure-electricity, roads, schools and hospitals, and water and sanitation. Using rich firm-level panel data from 41 countries over 19 years, we estimate that USD 1 million of public spending in infrastructure create 3-...

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Bibliographic Details
Main Author: Moszoro, Marian
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2021.
Series:IMF Working Papers; Working Paper ; No. 2021/131
Subjects:
Online Access:Full text available on IMF
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520 3 |a We evaluate the direct employment effect of the public investment in key infrastructure-electricity, roads, schools and hospitals, and water and sanitation. Using rich firm-level panel data from 41 countries over 19 years, we estimate that USD 1 million of public spending in infrastructure create 3-7 jobs in advanced economies, 10-17 jobs in emerging market economies, and 16-30 jobs in low-income developing countries. As a comparison, USD 1 million public spending on R and D yields 5-11 jobs in R and D in OECD countries. Green investment and investment with a larger R and D component deliver higher employment effect. Overall, we estimate that one percent of global GDP in public investment can create more than seven million jobs worldwide through its direct employment effects alone. 
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650 7 |a Foreign Exchange  |2 imf 
650 7 |a Informal Economy  |2 imf 
650 7 |a National Government Expenditures and Related Policies  |2 imf 
650 7 |a Other Public Investment and Capital Stock  |2 imf 
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