Creating jobs through public subsidies : an empirical analysis

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Title: Creating jobs through public subsidies : an empirical analysis
Authors: Girmaa, Sourafel
Görg, Holger
Strobl, Eric
Walsh, Frank
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Date: 2008
Online since: 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
Keywords: GrantsLabour demandMultinationals
Subject LCSH: Grants--Ireland
Manufacturing industries--Ireland
Labor demand--Ireland
DOI: 10.1016/j.labeco.2007.11.002
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Language: en
Status of Item: Peer reviewed
Appears in Collections:Economics Research Collection

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