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Employment effects of investment grants and firm heterogeneity: Evidence from a staggered adoption approach

Author

Listed:
  • Dettmann, Eva
  • Titze, Mirko
  • Weyh, Antje

Abstract

This study estimates the establishment-level employment effects of investment grants in Germany. In addition to the average treatment effect for the treated, we focus on discrimination in the funding rules as potential source of effect heterogeneity. We combine the difference-in-differences approach of Callaway and Sant'Anna (2021) that explicitly models variation in treatment timing with a ties matching at the cohort level. We observe a positive effect of investment grants on employment development in the full sample. The subsample analysis yields strong evidence for effect heterogeneity due to firm characteristics and the economic environment.

Suggested Citation

  • Dettmann, Eva & Titze, Mirko & Weyh, Antje, 2023. "Employment effects of investment grants and firm heterogeneity: Evidence from a staggered adoption approach," IWH Discussion Papers 6/2023, Halle Institute for Economic Research (IWH), revised 2023.
    • Handle: RePEc:zbw:iwhdps:62023
    as

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    File URL: https://www.econstor.eu/bitstream/10419/280283/1/iwh-dp2023-06rev.pdf
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    References listed on IDEAS

    as
    1. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
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    More about this item

    Keywords

    causal inference; heterogeneous effects; place-based policy; staggered adoption design; variation in treatment timing;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Z0 - Other Special Topics - - General

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