IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v22y1985i2p163-177.html
   My bibliography  Save this article

Estimating the Benefits of Job Creation from Local Investment Subsidies

Author

Listed:
  • K.G. Willis

    (Department of Town & Country Planning at the University of Newcastle upon Tyne)

Abstract

This paper reviews the application of project appraisal techniques to analysing the cost-effectiveness of local investment subsidies (advance factory building). Cost per job measures are shown to be dependent upon the method of assessing the number of jobs created, and the assumptions used in evaluating Exchequer as well as social costs and benefits. If realistic probabilities are adopted about the likelihood of previously unemployed persons obtaining a job other than in the advance factories, then such local investment subsidies are not economically viable in Exchequer terms. Local investment subsidies may be justified on cost-benefit grounds, but even by this criterion, the number of subsidy-created relative to subsidy-diverted jobs is crucial to the decision.

Suggested Citation

  • K.G. Willis, 1985. "Estimating the Benefits of Job Creation from Local Investment Subsidies," Urban Studies, Urban Studies Journal Limited, vol. 22(2), pages 163-177, April.
    • Handle: RePEc:sae:urbstu:v:22:y:1985:i:2:p:163-177
    DOI: 10.1080/00420988520080241
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420988520080241
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420988520080241?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rosewell, Bridget & Robinson, Derek, 1980. "The Reliability of Vacancy Statistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(1), pages 1-16, February.
    2. Hodge, Ian & Whitby, Martin, 1979. "NEW JOBS IN THE EASTERN BORDERS An Economic Evaluation of the Development Commission Factory Programme," Department of Agricultural Economics Archive 272897, University of Newcastle upon Tyne.
    3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    5. Willis, K. G., 1984. "Local authority employment planning: An ex post case study of some policy instruments," Socio-Economic Planning Sciences, Elsevier, vol. 18(2), pages 127-133.
    6. Sugden, Robert & Williams, Alan, 1978. "The Principles of Practical Cost-Benefit Analysis," OUP Catalogue, Oxford University Press, number 9780198770411.
    7. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5.
    8. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
    9. A. R. Prest & R. Turvey, 1966. "Cost-Benefit Analysis: A Survey," Palgrave Macmillan Books,, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. D.J. Storey, 1990. "Evaluation of Policies and Measures to Create Local Employment," Urban Studies, Urban Studies Journal Limited, vol. 27(5), pages 669-684, October.
    2. Othmani, Abdelhafidh & Ben Yedder, Nadia & Bakari, Sayef, 2023. "The Cointegration Relationship between Patent, Domestic Investment and Economic Growth in United States of America," MPRA Paper 118245, University Library of Munich, Germany.
    3. Ted K. Bradshaw, 2002. "The Contribution of Small Business Loan Guarantees to Economic Development," Economic Development Quarterly, , vol. 16(4), pages 360-369, November.
    4. Ivan Turok, 1989. "Evaluation and Understanding in Local Economic Policy," Urban Studies, Urban Studies Journal Limited, vol. 26(6), pages 587-606, December.
    5. Paul Coomes & Dennis Olson & John Merchant, 1991. "Using a Metropolitan-area Econometric Model to Analyse Economic Development Proposals," Urban Studies, Urban Studies Journal Limited, vol. 28(3), pages 369-382, June.
    6. Ian C. Thomas & P.J. Drudy, 1987. "The Impact of Factory Development on 'Growth Town' Employment in Mid-Wales," Urban Studies, Urban Studies Journal Limited, vol. 24(5), pages 361-378, October.
    7. Ian C. Thomas & P.J. Drudy, 1988. "Growth Town Employment in Mid-Wales Re-Visited: A Reply," Urban Studies, Urban Studies Journal Limited, vol. 25(6), pages 532-537, December.
    8. K.G. Willis, 1988. "The Impact of Factory Development on 'Growth Town' Employment in Mid-Wales : A Comment," Urban Studies, Urban Studies Journal Limited, vol. 25(6), pages 527-531, December.
    9. Paul Foley, 1992. "Local Economic Policy and Job Creation: A Review of Evaluation Studies," Urban Studies, Urban Studies Journal Limited, vol. 29(3-4), pages 557-598, May.
    10. Tony Bovaird, 1992. "Local Economic Development and the City," Urban Studies, Urban Studies Journal Limited, vol. 29(3-4), pages 343-368, May.
    11. Robert W. Wassmer, 1994. "Can Local Incentives Alter a Metropolitan City's Economic Development?," Urban Studies, Urban Studies Journal Limited, vol. 31(8), pages 1251-1278, October.
    12. Lorenz Blume, 2006. "Local economic policies as determinants of the local business climate: Empirical results from a cross-section analysis among East German municipalities," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 321-333.
    13. Steve Martin, 1989. "New Jobs in the Inner City: The Employment Impacts of Projects Assisted Under the Urban Development Grant Programme," Urban Studies, Urban Studies Journal Limited, vol. 26(6), pages 627-638, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joaquin Turmo-Garuz & M.-Teresa Bartual-Figueras & Francisco-Javier Sierra-Martinez, 2019. "Factors Associated with Overeducation Among Recent Graduates During Labour Market Integration: The Case of Catalonia (Spain)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1273-1301, August.
    2. Parla Onuk & Yılmaz Aydin, 2024. "Gender gap and the labour market structure: A neoclassical approach for the case of Turkiye," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(5), pages 4627-4640, October.
    3. El-Shal, Amira & Cubi-Molla, Patricia & Jofre-Bonet, Mireia, 2021. "Are user fees in health care always evil? Evidence from family planning, maternal, and child health services," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 506-529.
    4. Xinxin Ma & Ichiro Iwasaki, 2021. "Return to schooling in China: a large meta-analysis," Education Economics, Taylor & Francis Journals, vol. 29(4), pages 379-410, July.
    5. Daniele Checchi, 2001. "Education, Inequality and Income Inequality," STICERD - Distributional Analysis Research Programme Papers 52, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    6. Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    7. Hans‐Peter Y. Qvist & Anders Holm & Martin D. Munk, 2021. "Demand and Supply Effects and Returns to College Education: Evidence from a Natural Experiment with Engineers in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 676-704, April.
    8. Tanima Banerjee, 2024. "Maginalised population concentration and employment gap in non-elementary occupations in India: a regional level study," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(2), pages 370-395, August.
    9. Christiansen, Charlotte & Joensen, Juanna Schroter & Nielsen, Helena Skyt, 2007. "The risk-return trade-off in human capital investment," Labour Economics, Elsevier, vol. 14(6), pages 971-986, December.
    10. Alessia Amighini & Weidi Fang & Martin Zagler, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Papers wuwp351, Vienna University of Economics and Business, Department of Economics.
    11. Barry R. Chiswick, 2024. "Estimating returns to schooling and experience: a history of thought," Education Economics, Taylor & Francis Journals, vol. 32(5), pages 566-580, September.
    12. HORIE, Norio & IWASAKI, Ichiro & KUPETS, Olga & MA, Xinxin & MIZOBATA, Satoshi & SATOGAMI, Mihoko, 2023. "Wage Functions in China and Eastern Europe : A Large-Scale Comparative Meta Analysis," CEI Working Paper Series 2022-08, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    13. Hans Heijke & Christoph Meng & Ger Ramaekers, 2003. "An investigation into the role of human capital competences and their pay‐off," International Journal of Manpower, Emerald Group Publishing Limited, vol. 24(7), pages 750-773, November.
    14. Yubilianto, 2020. "Return to education and financial value of investment in higher education in Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-28, December.
    15. Youssef Lakrari & Ahmed Lemgadar & Abdelkarim Elfatimi & Abdellah Abaida, 2023. "Being laureate of a Moroccan University, what professional future? A multinomial analysis on a sample of laureates from Hassan 1 st University of Settat [Etre lauréat d'une Université marocaine, qu," Post-Print hal-03995212, HAL.
    16. Janzen, Katrin & Panitz, Robert & Glückler, Johannes, 2022. "Education premium and the compound impact of universities on their regional economy," Research Policy, Elsevier, vol. 51(1).
    17. Adriaan Kalwij, 2000. "Estimating the economic return to schooling on the basis of panel data," Applied Economics, Taylor & Francis Journals, vol. 32(1), pages 61-71.
    18. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-17.
    19. Henrik Hansen & S. Kanay De & John Rand & Neda Trifković, 2023. "Wage returns to workplace training in Myanmar," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    20. Samad Sarminah, 2020. "Achieving innovative firm performance through human capital and the effect of social capital," Management & Marketing, Sciendo, vol. 15(2), pages 326-344, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:22:y:1985:i:2:p:163-177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.