Do big shifts in economic development incentives attract people?

Huiqiong Duan, Cynthia Rogers, Jia Wang and Weici Yuan

Economics Letters, 2024, vol. 234, issue C

Abstract: State and local governments use economic development incentives (EDI) extensively to promote employment and economic growth. Research suggests that new jobs may go primarily to in-migrants rather than existing workers, which raises questions about who benefits from incentivizing employment (Bartik, 1993). Using a prominent national incentives database, we use event-study and regression frameworks to investigate the impacts of large, abrupt changes in state-level EDI programs on migration. Our results suggest increased net in-migration during the first year after a large change in EDI policy. We find no evidence of employment growth impacts.

Keywords: Economic development incentives; Migration; Job creation (search for similar items in EconPapers)
JEL-codes: H25 H71 J61 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004779

DOI: 10.1016/j.econlet.2023.111451

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