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Viplav Saini and Dakshina G De silva
''Government spending and job creation at highway construction firms: evidence from Texas''
( 2015, Vol. 35 No.1 )
Merging procurement auction data with an employment dataset for highway construction firms in Texas, we provide evidence on the link between government construction spending and firm-level job creation in the highway construction industry during 1999-2006. Our results suggest that firms expand the size of their workforce to account for larger backlogs of work when more contracts are auctioned. An increase in annual procurement spending will therefore likely spur aggregate job creation in the industry.
Keywords: highway construction, procurement auction, job creation
JEL: H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General
L7 - Industry Studies: Primary Products and Construction: General
Manuscript Received : Aug 22 2014 Manuscript Accepted : Mar 11 2015

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