Date of This Version
bailout, public finance, unemployment, automobile industry
We estimate the impact of the 2009 financial rescue of two large American automobile companies (General Motors and Chrysler) on unemployment in Michigan. We conservatively estimate that the auto bailout saved about 7,700 workers from unemployment each month over a period of four-and-a-half years. This translates to a public savings of between $1.3 and $1.6 billion via lower transfer payments and higher tax revenues.
Working Paper Number
Baumann, Robert and Thompson, Andrea, "Unemployment and Public Budget Impacts of the Auto Bailout" (2015). Economics Department Working Papers. Paper 156.