Assessing the Direct Employment Impact of Federal Economic Stimulus Funds on Construction Projects in Texas

Abstract

Owing to the 2008 economic downturn in the United States, the construction industry lost 632,000 jobs nationally, of which approximately 100,000 were in Texas. In response to the economic recession, a stimulus package known as the American Recovery and Reinvestment Act (ARRA), was signed by President Obama on March 6, 2009. This paper presents the results of a study examining the construction employment impact of ARRA spending on Texas transportation projects. The primary goal of this study was to estimate direct employment in the construction industry from spending on construction projects. By using regression analysis, the study assesses employment from data on Texas Department of Transportation projects that used ARRA funds, showing that employment generated by construction projects depends on project type, size, and location urbanization. The findings can be useful to policy makers in allocating funds on construction projects when employment stimulation is an objective.