Investment grants: Curse or blessing for employment?

Eva Dettmann

No 12/2025, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: In this study, establishment-level employment effects of investment grants in Germany are estimated. In addition to the quantitative effects, I provide empirical evidence of funding effects on different aspects of employment quality (earnings, qualifications, and job security) for the period 2004 to 2020. The database combines project-level treatment data, establishment-level information on firm characteristics and employee structure, and regional information at the district-level. For the estimations, I combine the difference-in-differences approach of Callaway and Sant'Anna (2021) with ties matching at the cohort level. The estimations yield positive effects on the number of employees, but point to contradicting effects of investment grants on different aspects of employment quality.

Keywords: causal inference; employment quality; place-based policy; staggered treatment adoption (search for similar items in EconPapers)
JEL-codes: C14 D04 D61 H20 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:319915

DOI: 10.18717/dpkn9k-r952

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