IDEAS home Printed from
   My bibliography  Save this paper

Evaluating the Employment Impact of Business Incentive Programs in EU Disadvantaged Areas. A case from Northern Italy


  • Bondonio, Daniele



Business incentive programs have been increasingly popular within the EU as regional economic development tools to promote employment growth in areas with severely distressed and/or declining socio-economic conditions. Reliable evidenced on the effective net employment impact of such initiatives are greatly needed to help refining future intervention as, to these days, European policy makers' decisions can mostly be supported only by monitoring and survey analyses. This paper proposes a method of analysis to assess the employment impact of the business incentive initiatives implemented in the EU areas with declining industrial production (EU 'Objective 2' areas). The proposed method is a comparison-group evaluation approach that uses panels of employment data aggregated by geographic areas (similarly to the evaluation approach successfully adopted by recent studies of the US Enterprise Zone Programs). Details of the proposed method of analysis are illustrated through an empirical application: the evaluation of the business incentive program co-funded by the European Regional Development Fund in the 'Objective 2' areas of the Piedmont region (Italy). Results from such application prove the effectiveness and the robustness of the proposed method for impact evaluation analyses with longitudinal data, and highlight how the Piedmont's business incentive program did not significantly affect employment in the 'Objective 2 areas'.

Suggested Citation

  • Bondonio, Daniele, 2002. "Evaluating the Employment Impact of Business Incentive Programs in EU Disadvantaged Areas. A case from Northern Italy," POLIS Working Papers 27, Institute of Public Policy and Public Choice - POLIS.
  • Handle: RePEc:uca:ucapdv:27

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:uca:ucapdv:27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucia Padovani). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.