Creating jobs through public subsidies: An empirical analysis

Girma, Sourafel; Görg, Holger; Strobl, Eric; Walsh, Frank

doi:10.1016/j.labeco.2007.11.002

Cited by 47 publications

(31 citation statements)

References 29 publications

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“…On the other hand, Girma et al (2008) examine the effects of government grants to firms in Ireland, comparing employment in treated and untreated firms. They also find positive effects on employment, particularly for domestic-owned firms.…”

Section: Previous Literaturementioning

confidence: 99%

Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey

2010

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a b s t r a c tThis paper studies the effects on registered employment and number of registered establishments of two employment subsidy schemes in Turkey. We implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces. Our findings suggest that both subsidy programs did lead to significant net increases in registered jobs in eligible provinces (5%-13% for the first program and 11%-15% for the second). However, the cost of the actual job creation was high because of substantial deadweight losses, particularly for the first program (47% and 78%). Because of better design features, the second subsidy program had lower, though still significant, deadweight losses (27%-46%). Although constrained by data availability, the evidence suggests that the dominant effect of subsidies was to increase social security registration of firms and workers rather than boosting total employment and economic activity. This supports the theory that in countries with weak enforcement institutions, high labor taxes on low-wage workers may lead to substantial incentives for firms and workers to operate informally.

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Section: Previous Literaturementioning

confidence: 99%

Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey

2010

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“…Lastly, we estimate the treatment effect of EURJVs on TFP through the generalized method of moments (GMM) system estimator for panel data (Blundell and Bond, 1998. For analogous approaches in similar contexts, see Girma, Görg, and Strobl, 2007;Girma et al, 2008). As our dataset is very informative on sample NTBFs, to the usual set of instruments we are able to add additional instruments aimed at capturing exogenous shifts of the variables of interest (for a similar approach see, for example, Leiponen, 2005;Benfratello and Sembenelli, 2006).…”

Section: Introductionmentioning

confidence: 99%

Effects of international R&D alliances on performance of high‐tech start‐ups: a longitudinal analysis

Colombo

Grilli

Murtinu

et al. 2009

Strategic Entrepreneurship

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“…A number of problems can emerge in this step if we rely on the subjective assessment of grant recipients or policy-maker. Alternatively, if general survey data are used and non-recipients are included as a control or comparison group in statistical or econometric analyses we run into a number of other issues such as selection bias (Girma et al, 2008). Another approach commonly used in the United States involves individuals randomly assigned to a programme and is seen as a more accurate, albeit less ethical, approach as the control group is deliberately denied assistance (Card et al, 2010).…”

Section: Methodsmentioning

confidence: 99%

Assessing the Effectiveness of Regional Policy Responses to Mass Redundancies: The Case of the Illawarra Region, Australia

O’Brien

Burrows

2019

J of App Econs and Policy

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Regional economies historically reliant on large‐scale manufacturing are particularly susceptible to episodes of mass employee redundancies. This was evident in the case of the Illawarra region in 2011 following the announcement of BlueScope Steel to close one of its two remaining blast furnaces. In common with recent closures of large manufacturers in regional Australia, the Federal Government reacted with policies to help redundant workers obtain reemployment as well as investment attraction strategies to create employment in the region. The research presented here uses a longitudinal and mixed methods approach to analyse the effectiveness of these policies. We uncovered a number of deficiencies in the implementation and evaluation of these policies and offer a number of recommendations with respect to programme flexibility, stakeholder representation and government transparency.

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Creating jobs through public subsidies: An empirical analysis

Cited by 47 publications

References 29 publications

Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey

Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey

Effects of international R&D alliances on performance of high‐tech start‐ups: a longitudinal analysis

Assessing the Effectiveness of Regional Policy Responses to Mass Redundancies: The Case of the Illawarra Region, Australia

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