1. Publications
  2. IWH Discussion Papers, 6/2023
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Employment Effects of Investment Grants and Firm Heterogeneity – Evidence from a Staggered Adoption Approach

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.

02. February 2023

Authors Eva Dettmann Mirko Titze Antje Weyh

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Keywords

staggered adoption design heterogeneous effects causal inference location policy variation in treatment timing

JEL Classification

A11 D61 H20 Z00

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Dr Eva Dettmann
Dr Eva Dettmann
Economist

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