@article{fc6a5ab59fd24fb68f1e7f6afc06020d,
title = "Effects of New Deal Spending and the downturns of the 1930s on private labor markets in 1939/1940",
abstract = "Gross Domestic Product recovered much more quickly than labor markets did during the 1930s. We provide new analysis of this issue by estimating a cross-sectional model for individuals in 1939–1940 as a function of the measures of the Great Contraction of 1929–1933, the recovery, and the Second Dip Recession and average information for three types of New Deal spending. The results show that the Great Contraction of 1929–1933 and the Second-Dip Recession still had powerful negative effects on county labor markets in 1939/1940 and these were only partially offset by public works grants. Relief grants had somewhat negative effects although this might have arisen because of a large layoff of workers by the WPA in 1939. The AAA payments to farmers to take land out of production were associated with lower earnings and private employment, but had mixed effects on skill mobility.",
author = "Xing Liu and Price Fishback",
note = "Funding Information: We would like to thank Leah Bouston, Dora Costa, Katherine Eriksson, Daniel Fetter, Andrew Goodman Bacon, Walker Hanlon, Joshua Hausman, Ron Oaxaca, Jessamyn Schaller, Gary Solon, Chris Vickers, Till von Wachter, Tiemen Woutersen, editor Kris Mitchener, and three anonymous referees for their comments and advice. We are deeply indebted to Christopher Boone of Cornell University for sharing his matches of individual workers from the 1930 and 1940 censuses. Various components of the research were supported by National Science Foundation grants SES-135744, SES-1061927, SES-0921732, SES 0617972, SES 0214483, SES-0080324, SBR-9708098, the Thomas R. Brown Foundation, the University of Arizona, and the Koch Foundation. Any views or statements in the paper are the authors{\textquoteright} own and do not reflect the views and/or attitudes of the funding organizations. Publisher Copyright: {\textcopyright} 2018 Elsevier Inc.",
year = "2019",
month = jan,
doi = "10.1016/j.eeh.2018.11.003",
language = "English (US)",
volume = "71",
pages = "25--54",
journal = "Explorations in Economic History",
issn = "0014-4983",
publisher = "Academic Press Inc.",
}