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Title:Mediating incentive use: A time-series assessment of economic development deals in North Carolina PDF Logo
Authors:Lester, T. William
Lowe, Nichola
Freyer, Allan
Issue Date:2012
Series/Report no.:Upjohn Institute Working Paper 12-184
Abstract:State incentive granting for the purpose of firm retention or recruitment remains highly controversial and is often portrayed as antithetical to long-range economic development planning. This paper uses quasi-experimental methods to measure the impact of state-level economic development incentives on employment growth at the establishment level in North Carolina. Using North Carolina's rich history of strategic planning and sector-based economic development as a backdrop, we develop a theory of sectoral mediation. This enables us to compare the effectiveness of incentives offered in mediated and nonmediated industries and show that when incentives are coupled with sectoral economic development efforts they generate substantially stronger employment effects than at establishments with limited sector-based institutional support.
Subjects:incentives
mediation
employment impacts
firm retention
recruitment
JEL:O20
O25
O43
R58
Document Type:Working Paper
Appears in Collections:Upjohn Institute Working Papers, W. E. Upjohn Institute for Employment Research

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