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Investment grants: Curse or blessing for employment?

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  • Dettmann, Eva

Abstract

In this study, establishment-level employment effects of investment grants in Germany are estimated. In addition to the quantitative effects, I provide empirical evidence of funding effects on different aspects of employment quality (earnings, qualifications, and job security) for the period 2004 to 2020. The database combines project-level treatment data, establishment-level information on firm characteristics and employee structure, and regional information at the district-level. For the estimations, I combine the difference-in-differences approach of Callaway and Sant'Anna (2021) with ties matching at the cohort level. The estimations yield positive effects on the number of employees, but point to contradicting effects of investment grants on different aspects of employment quality.

Suggested Citation

  • Dettmann, Eva, 2025. "Investment grants: Curse or blessing for employment?," IWH Discussion Papers 12/2025, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:319915
    DOI: 10.18717/dpkn9k-r952
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    More about this item

    Keywords

    causal inference; employment quality; place-based policy; staggered treatment adoption;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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