The Direct Employment Impact of Public Investment
IMF Working Papers, May 6, 2021
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- The Direct Employment Impact of Public Investment
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Bibliographic details
- Authors: Marian Moszoro
- Published: May 6, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513573793.001
Summary of purpose and approach
- Evaluates the direct employment effect of public investment in key infrastructure: electricity, roads, schools and hospitals, and water and sanitation.
- Uses firm-level panel data from 41 countries over 19 years.
Key empirical findings
- US$1 million of public spending in infrastructure creates:
- 3–7 jobs in advanced economies
- 10–17 jobs in emerging market economies
- 16–30 jobs in low-income developing countries
- As a comparison: US$1 million public spending on R&D yields 5–11 jobs in R&D in OECD countries.
- Green investment and investment with a larger R&D component deliver higher employment effect.
- One percent of global GDP in public investment can create more than seven million jobs worldwide through its direct employment effects alone.
Subject areas and keywords
- Subject: Employment, Expenditure, Income, Job creation, Labor, National accounts, Public investment spending
- Keywords: construction employment, Employment, employment effect, employment impact, Global, Income, job content, Job creation, job elasticity, job intensity, job multiplier, Public investment spending
Publication and document metadata (as reported)
- Author: Marian Moszoro
- Date: May 6, 2021
- Pages: 20
- Volume: 2021
- Issue: 131
- Series: Working Paper No. 2021/131
- DOI: https://doi.org/10.5089/9781513573793.001
- Stock No: WPIEA2021131
- ISBN: 9781513573793
- ISSN: 1018-5941
Source: https://www.imf.org/en/publications/wp/issues/2021/05/06/the-direct-employment-impact-of-public-investment
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- Working Paper