A brief analysis of US space employment

Space policy is an area of industrial economic policy. The space economy would vanish without the active role of the state. Although space may appear exotic to economist, it is not impossible to provide a quick economic insight into one of the most important aspects of all economic activities - the people employed. The space industry can attract employees from other industries in two ways. First, according to individual preferences and motivations. Second, on the basis of higher wages. Statistical evidence suggests the latter is more common. Moreover wages do not reflect productivity. NASA employees earn much more than employees in law or medicine. This does not match the social importance of these activities. Space employs many more people that stated by the OECD. Taking all activities together space employs almost half a million people in the USA. $1 billion given to NASA creates up to 24 000 vacancies in the space industry and also provides room for another 40 000 in the space economy in the long run. Current changes to the US national space programme suggest a decrease of $1.6 billion per year, implying a loss of up to 39 000 jobs.