IDEAS home Printed from https://ideas.repec.org/a/cup/jnlpup/v37y2017i01p85-112_00.html
   My bibliography  Save this article

Job creation and firm-specific location incentives

Author

Listed:
  • Jensen, Nathan M.

Abstract

Government economic development programmes provide opportunities for firms to leverage financial incentives for business expansion and relocation. This article examines the ability of these incentives to promote employment. Using establishment-level data from the state of Kansas as well as original firm-level survey data, I evaluate the effectiveness of financial incentives in creating jobs through recipient firms. My findings from the establishment-level data indicate that incentive programmes have no discernable impact on firm expansion, measured by job creation. In addition, the survey data suggest that incentive recipients highly recommend this programme to other firms, but few firms actually increased their employment in Kansas because of these incentives; similarly, very few firms would have left the state if they had not benefited from this programme. Thus, incentives have little impact on the relocation or expansion decisions of firms.

Suggested Citation

  • Jensen, Nathan M., 2017. "Job creation and firm-specific location incentives," Journal of Public Policy, Cambridge University Press, vol. 37(1), pages 85-112, March.
    • Handle: RePEc:cup:jnlpup:v:37:y:2017:i:01:p:85-112_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0143814X16000039/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Calcagno & Frank Hefner, 2018. "Targeted Economic Incentives: An Analysis of State Fiscal Policy and Regulatory Conditions," The Review of Regional Studies, Southern Regional Science Association, vol. 48(1), pages 71-91, Spring.
    2. Jacob Bundrick & Weici Yuan, 2019. "Do Targeted Business Subsidies Improve Income and Reduce Poverty? A Synthetic Control Approach," Economic Development Quarterly, , vol. 33(4), pages 351-375, November.
    3. Donghyuk Kim, 2023. "Interjurisdictional Competition and Coordination: Evidence from Kansas City," NBER Chapters, in: Policy Responses to Tax Competition, National Bureau of Economic Research, Inc.
    4. Sarah Bauerle Danzman & Alexander Slaski, 2022. "Incentivizing embedded investment: Evidence from patterns of foreign direct investment in Latin America," The Review of International Organizations, Springer, vol. 17(1), pages 63-87, January.
    5. Duan, Huiqiong & Rogers, Cynthia & Wang, Jia & Yuan, Weici, 2024. "Do big shifts in economic development incentives attract people?," Economics Letters, Elsevier, vol. 234(C).
    6. Mikhail Ivonchyk, 2022. "Local Economic Development Policies and Business Activity: Dynamic Panel Data Analysis of All County Governments in the State of Georgia," Economic Development Quarterly, , vol. 36(2), pages 92-107, May.
    7. Nathan M. Jensen, 2018. "Bargaining and the effectiveness of economic development incentives: an evaluation of the Texas chapter 313 program," Public Choice, Springer, vol. 177(1), pages 29-51, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jnlpup:v:37:y:2017:i:01:p:85-112_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/pup .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.