Impacts of Louisiana Public Policy on Employment: An Econometric Analysis

  • Russell M. Frazier
Keywords: Public Policy, Political Economy, Econometrics, Shift-Share Analysis, Policy Formation, Policy Implementation, Workforce Development, Community Economics, Louisiana


Employment plays a key role in the growth and development of any state economy, particularly given its potential to affect the standards of living for the population, as well as the revenues and expenditure of the government itself. A disaggregated evaluation of employment growth enables stakeholders to engage public policy formation in a more effective and efficacious manner. Therefore, the primary goal of this paper is to analyze employment growth trends and policy implications relative to the economic development of Louisiana’s industries at the sector level, by employing a rigorous shift-share analysis. The research employs data for twelve years from 2005 to 2017 to answer the guiding questions of this applied empirical research. Results show that comparative advantages are seen in the following areas: Finance and Insurance; Real Estate and Rental and Leasing; Administrative and Waste Services; Educational Services; Accommodation and Food Services; and Other Services (except for Public Administration). Thus, program initiatives directed at those sectors, with sufficient infrastructure, would enhance the economic development of Louisiana. It is plausible to believe that improved economic growth would draw new investors to Louisiana.


Al-Anzi, N. (2009). Workplace environment and its impact on employee performance. (A Thesis
Submitted in partial fulfilment of the Requirements for the Degree of Master of Business Administration). University of Malaysia, Bahrain.

Barff, R. A. and Knight III, P. L. (1988). “Dynamic Shift-Share Analysis”, Growth and Change,
vol. 19, pp. 2-10.

Bendavid-Val, Avrom. "Relative Regional Industrial Composition Analysis." Chapter 5.
Regional and Local Economic Analysis for Practitioners, New York: Praeger Publishers, 1983

Brown, H.J. (1969). ‘Shift and share projections of regional economic growth: an empirical test’.
Journal of Regional Science, 9(1). pp. 1–18.

Cangiano, A. (2014). Migration policies and migrant employment outcomes: Conceptual
analysis and comparative evidence for Europe. Comparative migration studies, 2(4).

Card, D., Kluve, J. and Weber, A. (2010): “Active Labour Market Policy Evaluations: A Meta
Analysis*,” The Economic Journal, 120(548), 452 –477.

Hustedde, R., Shaffer, R. and Pulve, G, (1983). Community Economic Analysis: A How-To Manual. North Central Regional Center for Economic Development, Iowa State
University, Ames, Iowa.

Knudsen, D.C. (2000) ’Shift-share analysis: further examination of models for the description of
economic change’. Socio-Economic Planning Sciences, 34(3). pp. 177–98.

Lapping, M.B. (2006). “Community Economics: Linking Theory and Practice, edited by Ron
Shaffer, Steve Deller, and Dave Marcouiller,” Journal of Regional Science, Wiley Blackwell, vol. 46 (4). pp. 805-806, October.

Loayza, N., Olaberría E., Rigolini, J. and Christiaensen, L. (2009). Natural Disasters and Medium-Term Economic Growth: The Contrasting Effects of Different Events on Disaggregated
Output. Mimeo, The World Bank.

Martin, J. P. (2014). Activation and Active Labour Market Policies in OECD Countries: Stylized
Facts and Evidence on Their Effectiveness. UCD Geary Institute Discussion Paper Series
2014/09. Dublin:.IZA Policy Paper Series No. 84. Dublin: Geary Institute, University College

Melachroinos, K. (2002). European Integration and the Spatial Dynamics of Manufacturing
Employment Change. Environment and Planning A: Economy and Space, 34 (11). pp. 2017-2036.

Ortiz, M. (2016). Louisiana Tourism Forecast. University of New Orleans Research Center.
Pestel, N. (2014). Employment effects of green energy policies. IZA World of Labor 2014: 76
doi: 10.15185/izawol.76.

Public Act 2015 70. Health and Safety at Work Act of 2015. New Zealand.

Regional Income Division, Bureau of Economic Analysis (2019). United States. Suitland,

Reyneri E. and Fullin G. (2011). “Labour Market Penalties of New Immigrants in New and Old
Receiving West European Countries”. International Migration, 49(1): 31-57.

Rueda, D. (2006). Social Democracy and Active Labour-Market Policies: Insiders, Outsiders and
the Politics of Employment Promotion. B.J.Pol.S. 36, 385–406.

State of Louisiana, Louisiana Division of Administration (2019). Baton Rouge, Louisiana.

State of Louisiana, Louisiana Economic Development (LED) (2017). 2017 Annual Program &
Incentives performance Report. Baton Rouge, Louisiana.

Toshkov D. and De Haan L. (2013). “The Europeanization of Asylum Policy: An assessment of
the EU impact on asylum applications and recognitions rates”. Journal of European Public
Policy, 20 (5): 661-683

U.S. Department of Agriculture, Economic Research Service (2019). United States.
Washington, D.C.

U.S. Department of Commerce, Bureau of Census (2018). United States. Washington, D.C.

U.S. Department of Labor, Bureau of Labor Statistics (2005 & 2019). United States.
Washington, D.C.

U.S. Department of Labor, Bureau of Labor Statistics (2019). About the Real Estate and Rental
and Leasing sector. United States. Washington, D.C.

Van Vliet, O. and Koster, F. (2011). Europeanization and the Political Economy of Active
Labour Market Policies. European Union Politics, 12(2), 217-239.