**Figure 2:  Direct and Indirect Employment Resulting from US$1B in Highway Spending by the US Federal Government According to US Department of Transportation (2008)**

<!-- Start of picture text --> 27,800<br>person-years<br>13,955<br>Spending by the<br>workers employed in person-years<br>the first 2 rounds on<br>consumer goods<br>Indirect employment 4,322<br>(industries supplying person-years<br>construction<br>materials) + 3,468<br>Equipment &<br>material supply person-years<br>Highway 6,055<br>construction person-years<br>1 st round 2 nd round 3 rd round<br>effects effects effects<br><!-- End of picture text --> Source: Own calculations based on the DOTMOD2 model from the US Federal Highway Administration and Wells (2008).

Table 2 provides the results for Annual Direct Employment per US$1Billion spent. The most important result of this summary analysis is that the range of direct employment impacts is tremendous: from 750 direct jobs per US$1billion spent on coal-fired generation projects to 100,000 direct jobs for water supply and sanitation network expansion. In addition, the direct employment generation potential of an investment is thus highly sensitive to: assumptions about wages; the division between skilled and unskilled workers; the sectoral allocation of the proposed program; the technology to be employed in each project; and the potential crowding-out or substitution effects. Indirect job estimates are also highly sensitive to leakage created from the division between locally produced versus imported inputs.

**Table 2:  Employment Levels for Representative Infrastructure Capital Investment Projects in LAC, by Country and Sub-sector**

||**Qualified**<br>**workers**|**Non-qualified**<br>**workers**|**Domestic**<br>**inputs**<br>**(mainly**<br>**material)**|**Foreign**<br>**inputs**<br>**(mainly**<br>**equipment)**|**Others**|**Total**|**Annual Direct**<br>**Employment**<br>**(per US$1B/yr)**<br>**[*]**|
|---|---|---|---|---|---|---|---|
|**Transport**||||||||
|**Colombia - Access to neigborhoods (streets)**|**15%**|**6%**|**49%**|**16%**|**14%**|**100%**|**22,500**|
|**Colombia - Feeder routes for Transmilenio**||**43%**|**27%**|**23%**|**6%**|**99%**|**35,833**|
|**Brazil - Roads**|**3%**|**9%**|**22%**|**63%**|**3%**|**100%**|**16,577**|
|**Argentina- Rosario - highways**|**1.3%**|**0.3%**|**60%**|**38%**|**0%**|**100%**|**1,650**|
|**Water and Sanitation**||||||||
|**Honduras - Improvement on water captation**|**28%**|**12%**|**40%**|**20%**||**100%**|**43,333**|
|**Honduras - Rehabilatation of water networks**|**30%**|**20%**|**40%**|**10%**||**100%**|**58,333**|
|**Honduras - Expansion of water networks**|**20%**|**30%**|**40%**|**10%**||**100%**|**66,667**|
|**Honduras - New treatment plant**|**10%**|**10%**|**80%**|**0%**||**100%**|**25,000**|
|**Colombia - Expansion of WSS networks**|**8%**|**56%**|**32%**|**4%**||**100%**|**100,000**|
|**Brazil - Rain Drainage networks**|**8%**|**16%**|**48%**|**28%**|**0%**|**100%**|**34,001**|
|**Brazil - Sewerage**|**4%**|**11%**|**68%**|**17%**|**0%**|**100%**|**21,746**|
|**Energy**||||||||
|**US - Solar PV**|**3%-5%**||**95%**|**-97%**||**100%**|**2,700**|
|**US - Wind Power**|**4%-6%**||**94%**|**-96%**||**100%**|**3,400**|
|**US - Biomass**|**1%-2%**||**98%**|**-99%**||**100%**|**700**|
|**US - Coal-fired**|**1%-2%**||**98%**|**-99%**||**100%**|**750**|
|**US - Natural gas-fired**|**2%-4%**||**96%**|**-98%**||**100%**|**1,700**|
|**Brazil - Hydropower**|**5%-10%**||**90%**|**-95%**||**100%**|**4,500**|
|**Peru - Rural Electrification**|**14%**|**7%**|**26%**|**53%**|**0%**|**100%**|**23,000**|

Note: [*] These estimates are based on an hourly wage of $3 for non qualified workers and $6 for qualified ones for 2,000 working hours a year. See Annex 1 for a discussion of these assumptions.

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