Empirical Economic Bulletin, An Undergraduate Journal


This paper will investigate the impact of the American Recovery and Reinvestment Act on the job market. The ARRA, also known as the Stimulus or the Recovery Act, is a stimulus package that was passed by the 111th United States Congress in February 2009 and signed into law on the 17th of February by President Barack Obama. The primary focus of this bill was to save and create jobs in response to the 2000’s recession that our economy faced. We will evaluate impact of the ARRA by using the latest census bureau data of each state and regression analysis. Our regression analysis will have the variable new jobs created, which can be found by subtracting the amount of newly employed individual by the amount of people that were employed before the law was passed, as a dependent variable. The independent variable will be, state, age, sex, if the state is democratic, if the state has factories and taxes.