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Measuring the Employment Effects of the Rural Renewal Tax Scheme

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  • Michael J. Keane
  • Eoghan Garvey

    (Department of Economics, National University of Ireland, Galway)

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    Abstract

    This paper presents evidence on the effectiveness of the Rural Renewal Tax Scheme introduced by the Irish Government in 1998. The rationale for the scheme puts the emphasis on new economic activity and economic growth in the designated area. Thus, it is legitimate to look for positive employment impacts as a primary outcome of the tax scheme. The empirical results suggest that the tax scheme has had positive effects on the numbers of people unemployed in the tax area. However, using rough estimates of the costs of the scheme, these employment gains are not significant enough for the scheme to pass an efficiency test.

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    Bibliographic Info

    Paper provided by National University of Ireland Galway, Department of Economics in its series Working Papers with number 0070.

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    Date of creation: 2003
    Date of revision: 2003
    Handle: RePEc:nig:wpaper:0070

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    Related research

    Keywords: Evaluation; Tax Designated Area; Fixed Effects Regression; Efficiency Test;

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