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Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant-Level Data Author info | Abstract | Publisher info | Download info | Related research | Statistics Holger Görg () (School of Economics, University of Nottingham)
Eric Strobl () (Ecole Polytechnique)
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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.
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Article provided by Southern Economic Association in its journal Southern Economic Journal .
Volume (Year): 72 (2006)
Issue (Month): 4 (April)
Pages: 860–876
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Handle: RePEc:sej:ancoec:v:72:4:y:2006:p:860-876Contact details of provider: Web page: http://www.southerneconomic.org/ More information through EDIRC
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Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Laia Castany, 2008.
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