Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172485 
Year of Publication: 
2017
Series/Report no.: 
IWH Discussion Papers No. 27/2017
Publisher: 
Leibniz-Institut für Wirtschaftsforschung Halle (IWH), Halle (Saale)
Abstract: 
The paper estimates the plant level employment effects of investment subsidies in one of the most strongly subsidized German Federal States. We analyze the treated plants as a whole, as well as the influence of heterogeneity in plant characteristics and the economic environment. Modifying the standard matching and difference-in-difference approach, we develop a new procedure that is particularly useful for the evaluation of funding programs with individual treatment phases within the funding period. Our data base combines treatment, employment and regional information from different sources. So, we can relate the absolute effects to the amount of the subsidy paid. The results suggest that investment subsidies have a positive influence on the employment development in absolute and standardized figures - with considerable effect heterogeneity.
Subjects: 
evaluation
industrial policy
matching
difference-in-difference
JEL: 
A11
D61
H20
Z0
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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