A study funded by Columbia’s Center for Political Economy and the Alfred P. Sloan Foundation shows that legislation passed in 2022 generated jobs where it was intended.
Brookings published a summary – as well as a podcast and a video – of the working paper, “Employment impacts of the CHIPS Act,” co-authored by University Professor and Nobel Laureate Joseph E. Stiglitz, Economics Professor Bilge Erten of Northeastern University, and Eric A. Verhoogen, a Columbia professor of Economics and International and Public Affairs in the School of International and Public Affairs and who also serves as co-leader of the Center’s Firms and Industrial Policy Idea Lab.
The Brookings summary reported that “The $52.7 billion CHIPS and Science Act of August 2022 directly and indirectly created between 42,465 and 54,385 jobs (more than many expected) and increased wages in 149 counties with semiconductor manufacturing facilities.”
“Our findings suggest that industrial policies can deliver measurable employment benefits in targeted strategic sectors, even in the short run,” the authors wrote.
