IDEAS home Printed from https://ideas.repec.org/p/uca/ucapdv/92.html
   My bibliography  Save this paper

The Employment Impact of Business Incentive Policies: a Comparative Evaluation of Different Forms of Assistance

Author

Listed:
  • Bondonio, Daniele

    ()

Abstract

Business incentive policies, over the past decades, have become popular tools to boost local economic development, employment and firm innovation outcomes, both in Italy and in the EU. Despite the increasing importance of these policies, as of today, a small body of empirical evidence is available on their actual employment impact, retrieved against a credible counterfactual estimate. This paper exploits a firm-level data base of unusual richness, formed by merging longitudinal employment and firm demographic information with the firm-level archives of all incentive payments performed by each of the many different (national, regional and EU co-sponsored) business incentive programs assisting firms located in a large Northern Italian region. The analysis developed in the paper yield the employment impacts of the policies under plausible identification assumptions, disentangling the employment impacts of different values of both the economic intensities of the program assistance and different forms of assistance (the latter distinguishing between capital grants and below-market interest rate/revolving loans).

Suggested Citation

  • Bondonio, Daniele, 2007. "The Employment Impact of Business Incentive Policies: a Comparative Evaluation of Different Forms of Assistance," POLIS Working Papers 92, Institute of Public Policy and Public Choice - POLIS.
  • Handle: RePEc:uca:ucapdv:92
    as

    Download full text from publisher

    File URL: http://polis.unipmn.it/pubbl/RePEc/uca/ucapdv/bondonio101.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    2. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
    3. Wei Fan & Frederick Treyz & George Treyz, 2000. "An Evolutionary New Economic Geography Model," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 671-695.
    4. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
    5. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(03), pages 199-236, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:uca:ucapdv:92. 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: http://polis.unipmn.it .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.