Who benefits from GRW? Heterogeneous employment effects of investment subsidies in Saxony Anhalt

Eva Dettmann, Mirko Titze and Antje Weyh

No 27/2017, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: The paper estimates the plant level employment effects of investment subsidies in one of the most strongly subsidized German Federal States. We analyze the treated plants as a whole, as well as the influence of heterogeneity in plant characteristics and the economic environment. Modifying the standard matching and difference-in-difference approach, we develop a new procedure that is particularly useful for the evaluation of funding programs with individual treatment phases within the funding period. Our data base combines treatment, employment and regional information from different sources. So, we can relate the absolute effects to the amount of the subsidy paid. The results suggest that investment subsidies have a positive influence on the employment development in absolute and standardized figures - with considerable effect heterogeneity.

Keywords: evaluation; industrial policy; matching; difference-in-difference (search for similar items in EconPapers)
JEL-codes: A11 D61 H20 Z0 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:272017

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