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Creating jobs through public subsidies : an empirical analysis
Author(s)
Date Issued
2008
Date Available
2008-06-03T13:56:09Z
Abstract
This paper analyses the impact of government grants on labour demand using plant level data for manufacturing industry in Ireland. Our data consists of a large sample of plants and their complete grant history. We provide evidence that additional employment is created over and above the level that would have prevailed in the absence of grant payments. We also find differences in the employment response to subsidies between domestic and foreign-owned plants, with the former creating more additional jobs per euro of grant payment. Simple cost-benefit analysis reveals that a large part of the costs of grants appears to be recouped in additional wage streams under reasonable assumptions.
Type of Material
Journal Article
Publisher
Elsevier Science
Journal
Labour Economics
Volume
15
Issue
6
Start Page
1179
Copyright (Published Version)
Copyright 2007 Elsevier B.V
Classification
H25
J23
Subject – LCSH
Grants--Ireland
Manufacturing industries--Ireland
Labor demand--Ireland
Web versions
Language
English
Status of Item
Peer reviewed
ISSN
0927-5371
This item is made available under a Creative Commons License
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walshf_article_post(cp)_009.pdf
Description
Accepted version of the article
Size
352.96 KB
Format
Adobe PDF
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