Economics at your fingertips  

How much does state aid mitigate employment losses? Local policy effects at a time of economic crisis

Augusto Cerqua () and Guido Pellegrini

Regional Studies, 2022, vol. 56, issue 10, 1698-1712

Abstract: We evaluate the effectiveness of the most extensive experiment of income redistribution, that is, the European Union regional policy, at a time of economic crisis. By exploiting geographical discontinuities in fund eligibility, we analyse comprehensive data on all publicly funded Italian projects at the municipality level. We find a positive impact of localized support to firms with a sizable increase in employment and the number of plants in intensively treated areas. The result is an important policy lesson concerning the effects of place-based policies at a time of a long-lasting recession, such as that engendered by the Covid-19 crisis.

Date: 2022
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1080/00343404.2021.2003319

Access Statistics for this article

Regional Studies is currently edited by Ivan Turok

More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2022-12-08
Handle: RePEc:taf:regstd:v:56:y:2022:i:10:p:1698-1712