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dc.contributor.authorKoski, Helien_US
dc.contributor.authorPajarinen, Mikaen_US
dc.description.abstractWe use data from 15508 Finnish companies with 10 or more employees for the years 2003-2008 to explore the relationship between employment growth and three endogenously determined business subsidy types (i.e. employment subsidy, R&D subsidy and other business subsidies). We find a positive contemporary relationship between all business subsidy types and employment growth. Our findings suggest that R&D subsidies further contribute to the firms' employment for one year after and employment and other subsidies for three years after the reception of subsidies. After that, the differences between the subsidized and non-subsidized firms vanish. We further find, in line with the empirical studies of Harrison et al. (2008) and Hall et al. (2008), that both product innovation and sales growth from a firm's old products contribute to the firm's employment growth. Process innovation, instead, does not seem to have any significant effect on employment.en_US
dc.publisherElinkeinoelämän Tutkimuslaitos Helsinkien_US
dc.relation.ispartofseriesETLA discussion paper 1235en_US
dc.subject.keywordpublic subsidiesen_US
dc.subject.keywordtechnology policyen_US
dc.subject.keywordemployment growthen_US
dc.titleDo business subsidies facilitate employment growth?en_US
dc.typeWorking Paperen_US
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

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