In times of growth, states with Democratic governments are more able to stimulate employment than those with conservative ones

In the years following the Great Recession, unemployment rates have varied markedly across U.S. states. While much of this is down to national trends, how do state politics influence unemployment levels? In new research, Christopher Witko and Nate Kelly find that while in recessions, both Republican and Democratic governments have little effect on unemployment rates, during times of increasing growth, states with Democratic governments see larger reductions in unemployment. They argue that liberal governments have more freedom to introduce policies that stimulate employment such as consumption spending when growth is on the rise.