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Public Capital Investment, Unemployment Rates, and Labor Force Participation: What does the Evidence Tell Us?

Christopher N. Annala

The BRC Journal of Advances in Business

Volume 1

Number 2

Print ISSN: 2152-8616 Online ISSN: 2152-8667

Date: March 15, 2011

First Page 1

Last Page 18

Abstract

The effects of public capital on the economy are an area of interest among academics and policymakers. Public capital projects are often touted as a means to decrease unemployment rates. We present mixed results on the impact of public capital investment on unemployment rates and deviations in the unemployment rate. We find evidence that contemporaneous public capital investment increases the labor force participation rate.

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