Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant‐Level Data

Holger Görg and Eric Strobl ()

Southern Economic Journal, 2006, vol. 72, issue 4, 860-876

Abstract: This paper examines whether financial assistance provided by government induces firms to spend more of their own funds on training expenditures, using plant‐level data for the Republic of Ireland. We pay particular attention to the potential problems in such an evaluation study, namely selectivity and endogeneity, by first identifying a valid counterfactual for grant receiving plants via a matching estimator and then employing a difference‐in‐differences technique on this matched sample. Our results show that there are differences in causal effects between domestic and foreign‐owned plants. For the former, we find clear evidence that grant receipt stimulates private expenditure, whereas there are no statistically significant effects for foreign‐owned plants based in Ireland.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/j.2325-8012.2006.tb00742.x

Related works:
Working Paper: Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant Level Data (2005)
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: https://EconPapers.repec.org/RePEc:wly:soecon:v:72:y:2006:i:4:p:860-876

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().