Replication data for: Does State Fiscal Relief during Recessions Increase Employment? Evidence from the American Recovery and Reinvestment Act
Principal Investigator(s): View help for Principal Investigator(s) Gabriel Chodorow-Reich; Laura Feiveson; Zachary Liscow; William Gui Woolston
Version: View help for Version V1
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Project Citation:
Chodorow-Reich, Gabriel, Feiveson, Laura, Liscow, Zachary, and Woolston, William Gui. Replication data for: Does State Fiscal Relief during Recessions Increase Employment? Evidence from the American Recovery and Reinvestment Act. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114788V1
Project Description
Summary:
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The American Recovery and Reinvestment Act (ARRA) of 2009 included $88 billion of aid to state governments administered through the Medicaid reimbursement process. We examine the effect of these transfers on states' employment. Because state fiscal relief outlays are endogenous to a state's economic environment, OLS results are
biased downward. We address this problem by using a state's prerecession
Medicaid spending level to instrument for ARRA state fiscal relief. In our preferred specification, a state's receipt of a marginal $100,000 in Medicaid outlays results in an additional 3.8 job-years, 3.2 of which are outside the government, health, and education sectors. (JEL H75, I18, I38, R23)
Scope of Project
JEL Classification:
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H75 State and Local Government: Health; Education; Welfare; Public Pensions
I18 Health: Government Policy; Regulation; Public Health
I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
H75 State and Local Government: Health; Education; Welfare; Public Pensions
I18 Health: Government Policy; Regulation; Public Health
I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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