The dynamics of relief spending and the private urban labor market during the new deal

Todd C. Neumann, Price V. Fishback, Shawn Kantor

Research output: Contribution to journalArticlepeer-review

21 Scopus citations

Abstract

We examine the dynamic relationships between relief spending and local private labor markets using a panel data set of relief, private employment, and private earnings. Positive shocks to relief during the First New Deal were followed by increased private employment and earnings, consistent with demand stimulus in that period. On the other hand, increases in work relief spending during the Second New Deal were followed by decreased employment and increased earnings, consistent with crowding out. The timing of spending is consistent with claims that the Roosevelt administration used relief spending to sway elections.

Original languageEnglish (US)
Pages (from-to)195-220
Number of pages26
JournalJournal of Economic History
Volume70
Issue number1
DOIs
StatePublished - Mar 1 2010

ASJC Scopus subject areas

  • History
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

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