Did The Stimulus Work? Ctd

Aug 31 2011 @ 2:03pm

by Patrick Appel

New research looks at the types of jobs that were created:

 In our survey, just 42.1 percent of the workers hired at ARRA-receiving organizations after January 31, 2009, were unemployed at the time they were hired … More were hired directly from other organizations (47.3 percent of post-ARRA workers), while a handful came from school (6.5%) or from outside the labor force (4.1%)

Tyler Cowen thinks this "paper goes a long way toward explaining why fiscal stimulus usually doesn’t have such a great 'bang for the buck'":

Many of the created jobs involved hiring people back from retirement.  You can tell a story about how hiring the already employed opened up other jobs for the unemployed, but it’s just that — a story.  I don’t think it is what happened in most cases, rather firms ended up getting by with fewer workers.

Drum sees the data differently. Earlier thoughts here.