Decomposing the employment effects of investment subsidies
نویسندگان
چکیده
Most governments tackle the economic issues of underdeveloped areas by offering subsidies aimed at fostering activities and local employment. Localized policies put constraints on where businesses may locate to receive subsidies, but they generally place few restrictions whom subsidized must hire. Using administrative data firms workers in Italy, we adopt a multi-cutoff regression discontinuity design empirically assess decompose employment effect substantial incentives for replacement or establishment new capital. Our empirical strategy allows identifying geographical origin labor market status hires. The results show how majority recruits come from entrants market, particular, young people students, while displacement effects are limited. It appears that companies tend keep their most valuable staff hire more qualified people. Overall, find only modest spatial dispersion possible crowding-out market.
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ژورنال
عنوان ژورنال: Journal of Urban Economics
سال: 2022
ISSN: ['0094-1190', '1095-9068']
DOI: https://doi.org/10.1016/j.jue.2021.103408