In 2011, Kansas and Wisconsin experimented with fiscal austerity policies. Proponents of the tax and public expenditure cuts argued that they would spur economic growth, while opponents claimed that it would harm vulnerable populations. I use the timing of these policies and the synthetic control method to examine how state‐level austerity affected earnings per worker for high and low education segments of the workforce in major urban areas. The results suggest that the Kansas and Wisconsin fiscal experiments hurt low education workers in some urban areas. The estimates also show heterogeneity in the treatment effect. Notably, Madison, WI, was the only urban area that experienced substantial positive growth in both education segments.

中文翻译：

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州级紧缩、教育和大型城市劳动力市场：来自堪萨斯州和威斯康星州财政政策实验的证据

2011 年，堪萨斯州和威斯康星州尝试了财政紧缩政策。支持减税和削减公共开支的人认为这会刺激经济增长，而反对者则声称这会伤害弱势群体。我使用这些政策的时间安排和综合控制方法来研究州级紧缩政策如何影响主要城市地区劳动力中高学历和低学历群体的人均收入。结果表明，堪萨斯州和威斯康星州的财政试验伤害了一些城市地区的低教育工人。估计值还显示了治疗效果的异质性。值得注意的是，威斯康星州麦迪逊市是唯一在这两个教育领域均实现大幅正增长的城市地区。