51 Pages Posted: 4 Jun 2013
Date Written: April 1, 2013
We exploit cross-city variation in manufacturing decline and housing market changes during the 2000s, and jointly estimate their effects on non-employment. Both forces strongly affected non- employment between 2000 and 2007, with the increase from manufacturing decline almost exactly offset by reductions attributable to housing. We show that this offsetting occurred both in the aggregate and at the individual level. Moreover, we show that the housing bust undid the effects of the preceding housing boom, such that over the entire 2000s housing explains little of the aggregate non-employment increase, while manufacturing explains roughly 40 percent.
JEL Classification: J21, E24, E32, R23
Suggested Citation: Suggested Citation
Charles, Kerwin Kofi and Hurst, Erik and Notowidigdo, Matthew, Manufacturing Decline, Housing Booms, and Non-Employment (April 1, 2013). Chicago Booth Research Paper No. 13-57. Available at SSRN: https://ssrn.com/abstract=2273684 or http://dx.doi.org/10.2139/ssrn.2273684