| Summary: | A three-stage empirical model is constructed to examine the compatibility of policy objectives in terms of economic growth and environmental quality. Data are drawn from disaggregated industry-level employment figures for the period 1982-1994. Findings indicate that state environmental regulations do have an affect on the employment decisions of manufacturers: State environmental regulations adversely affect the growth of employment in the chemical, paper, and primary metals industries but not in the foodstuffs industry. These findings imply that such regulations have less impact on nonpollution intensive sectors than on pollution-intensive sectors. Tables list descriptions of time-variant variables, descriptions of time-invariant variables, and estimates of the time-invariant determinants of changes in employment.
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