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MASS LAYOFFS, MANUFACTURING AND STATE BUSINESS CLIMATES: DOES STATE POLICY MATTER?
Author(s) -
Surfield Christopher J.,
Reddy C. Surender
Publication year - 2016
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12157
Subject(s) - state (computer science) , job loss , estimation , economics , climate policy , manufacturing sector , labour economics , econometrics , climate change , macroeconomics , unemployment , mathematics , management , algorithm , ecology , biology
This study provides the first estimates on the relationship between state public policies and job losses in the manufacturing sector. In addition, spatial model estimation is adopted to identify any effect that state policies may have on the adopting state as well as upon neighboring states. We find evidence that favorable ratings regarding some elements of a state's business climate coincide with a lower incidence of job loss. This relationship holds beyond the adopting state and is correlated with lower job losses in contiguous states. ( JEL J50, J60, M50)