Putting Public Investment to Work by Mariano Moszoro published by IMF (8/2021)
“For countries on the path to recovery, reviving economic activity is a major priority. And what better way to support a come-back than by creating jobs. Our new IMF staff research shows that when governments spend on infrastructure, they create many new jobs.
Drawing on a 19-year dataset of over 5,600 construction companies from 27 advanced economies and 14 emerging market economies, we use an innovative approach to measure the direct employment effect of $1 million of infrastructure spending by country income group and sector—electricity, roads, schools, hospitals, and water and sanitation. Because there is no data available for low-income developing countries, we estimate the employment impact by extrapolating from advanced economies and emerging market economies…”