The Great Recession and Job Loss Spillovers : Impact of Tradable Employment Shocks on Supporting Services
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 U.S. counties, the paper finds that job losses in a county’s tradable sectors cause further job losses in the county’...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/01/25818518/great-recession-job-loss-spillovers-impact-tradable-employment-shocks-supporting-services http://hdl.handle.net/10986/23715 |
| Summary: | 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 U.S. counties, the paper finds that job losses in
a county’s tradable sectors cause further job losses in
the county’s supporting services. For a given county, a
10 percent exogenous decline in tradable employment
reduces supporting industries’ employment by 3.8 percent.
In addition, a county’s regional supporting services
are relatively less affected by its tradable job losses than its
local supporting services are, which reinforces the argument
that the spillovers are due to input-output linkages. |
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