Publication: The Great Recession and Job Loss Spillovers: Impact of Tradable Employment Shocks on Supporting Services
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2016-01
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2016-02-02
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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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“Rezaei, Shawheen; Nguyen, Ha; Agarwal, Divya. 2016. The Great Recession and Job Loss Spillovers: Impact of Tradable Employment Shocks on Supporting Services. Policy Research Working Paper;No. 7543. © World Bank. http://hdl.handle.net/10986/23715 License: CC BY 3.0 IGO.”
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