Study: Stimulus Funds Primarily Used to Poach Workers, Not Hire Unemployed
12:14 PM, Aug 31, 2011 • By MARK HEMINGWAY
The Mercatus Center at George Mason University has just released an important new study on the hiring practices of firms that used stimulus funds. It's fairly comprehensive, based on over 1,300 surveys of managers and employees. There's been very little good empirical data on the stimulus thus far, so the study contains a lot of valuable insights. Among the findings by authors Dan Rothschild and Garrett Jones:
Put simply, stimulus funds caused more job shifting than job creation. Another key finding? Union-friendly wage protections kill jobs:
The idea that the Stimulus' Davis-Bacon requirements undercut the supposed job creation benefits of government spending isn't a new revelation. However, this is pretty definitive confirmation this was one of major reasons the stimulus failed to live up to job creation expectations.