Who Benefits from Place-based Policies? Evidence from Matched Employer-Employee Data
Philipp Grunau, Florian Hoffmann, Thomas Lemieux, Mirko Titze
IWH Discussion Papers,
Nr. 11,
2024
Abstract
We study the wage and employment effects of a German place-based policy using a research design that exploits conditionally exogenous EU-wide rules governing the program parameters at the regional level. The place-based program subsidizes investments to create jobs with a subsidy rate that varies across labor market regions. The analysis uses matched data on the universe of establishments and their employees, establishment-level panel data on program participation, and regional scores that generate spatial discontinuities in program eligibility and generosity. These rich data enable us to study the incidence of the place-based program on different groups of individuals. We find that the program helps establishments create jobs that disproportionately benefit younger and less-educated workers. Funded establishments increase their wages but, unlike employment, wage gains do not persist in the long run. Employment effects estimated at the local area level are slightly larger than establishment-level estimates, suggesting limited spillover effects. Using subsidy rates as an instrumental variable for actual subsidies indicates that it costs approximately EUR 25,000 to create a new job in the economically disadvantaged areas targeted by the program.
Artikel Lesen
The Promise and Peril of Entrepreneurship
Robert W. Fairlie, Zachary Kroff, Javier Miranda, Nikolas Zolas
MIT Press,
2023
Abstract
Startups create jobs and power economic growth. That's an article of faith in the United States—but, as The Promise and Peril of Entrepreneurship reveals, our faith may be built on shaky ground. Economists Robert Fairlie, Zachary Kroff, Javier Miranda, and Nikolas Zolas—working with Census Bureau microdata—have developed a new data set, the Comprehensive Startup Panel, that tracks job creation and the survival of every startup in the country. In doing so, they recalibrate our understanding of how startups behave in the US economy. Specifically, their work seeks to answer three critical questions: How many jobs does each entrepreneur create? Do those jobs disappear quickly? And how long do entrepreneurial enterprises survive?
Artikel Lesen
Micro Data on Robots from the IAB Establishment Panel
Verena Plümpe, Jens Stegmaier
Jahrbücher für Nationalökonomie und Statistik,
Nr. 3,
2023
Abstract
Micro-data on robots have been very sparse in Germany so far. Consequently, a dedicated section has been introduced in the IAB Establishment Panel 2019 that includes questions on the number and type of robots used. This article describes the background and development of the survey questions, provides information on the quality of the data, possible checks and steps of data preparation. The resulting data is aggregated on industry level and compared with the frequently used robot data by the International Federation of Robotics (IFR) which contains robot supplier information on aggregate robot stocks and deliveries.
Artikel Lesen
Household Indebtedness, Financial Frictions and the Transmission of Monetary Policy to Consumption: Evidence from China
Michael Funke, Xiang Li, Doudou Zhong
Emerging Markets Review,
June
2023
Abstract
This paper studies the impact of household indebtedness on the transmission of monetary policy to consumption using the Chinese household-level survey data. We employ a panel smooth transition regression model to investigate the non-linear role of indebtedness. We find that housing-related indebtedness weakens the monetary policy transmission, and this effect is non-linear as there is a much larger counteraction of consumption in response to monetary policy shocks when household indebtedness increases from a low level rather than from a high level. Moreover, the weakened monetary policy transmission from indebtedness is stronger in urban households than in rural households. This can be explained by the investment good characteristic of real estate in China.
Artikel Lesen
IWH-Insolvenzforschung
IWH-Insolvenzforschung Die IWH-Insolvenzforschungsstelle bündelt die...
Zur Seite
IWH-FDI-Mikrodatenbank
IWH-FDI-Mikrodatenbank Die IWH-FDI-Mikrodatenbank (FDI = Foreign Direct Investment)...
Zur Seite
Weigt
Who Buffers Income Losses after Job Displacement? The Role of Alternative Income Sources, the Family, and the State ...
Zur Seite
Arbeitspapiere
Macroeconomic Effects from Sovereign Risk vs. Knightian Uncertainty ...
Zur Seite
Bank Failures, Local Business Dynamics, and Government Policy
Salvador Contreras, Manthos D. Delis, Amit Ghosh, Iftekhar Hasan
Small Business Economics,
Nr. 4,
2022
Abstract
Using MSA-level data over 1994–2014, we study the effect of bank failures on local business dynamics, in the form of net business formation and net job creation. We find that at least one bank failure in the metropolitan statistical area (MSA) with the mean population prevents approximately 475 net businesses from forming in that area, compared with MSAs that experience no bank failures, ceteris paribus. The equivalent effect on net job creation is 16,433 net job losses. Our results are even stronger for small businesses, which are usually more dependent on bank-firm relationships. These effects point to significant welfare losses stemming from bank failures, highlighting an important role for government intervention. We show that the Troubled Asset Relief Program (TARP) is effective in reducing the negative effects of bank failures on local business dynamics. This positive effect of TARP is quite uniform across small and large firms.
Artikel Lesen