IDEAS home Printed from https://ideas.repec.org/p/zbw/iwhdps/62023.html
   My bibliography  Save this paper

Employment effects of investment grants and firm heterogeneity: Evidence from a staggered adoption approach

Author

Listed:
  • Dettmann, Eva
  • Titze, Mirko
  • Weyh, Antje

Abstract

This study estimates the firm-level employment effects of investment grants in Germany. In addition to the average treatment effect on the treated, we examine discrimination in the funding rules as potential source of effect heterogeneity. We combine a staggered difference-in-differences approach that explicitly models variations in treatment timing with a matching procedure at the cohort level. The findings reveal a positive effect of investment grants on employment development in the full sample. The subsample analysis yields strong evidence for heterogeneous effects based on firm characteristics and the economic environment. This can help to improve the future design of the program.

Suggested Citation

  • Dettmann, Eva & Titze, Mirko & Weyh, Antje, 2024. "Employment effects of investment grants and firm heterogeneity: Evidence from a staggered adoption approach," IWH Discussion Papers 6/2023, Halle Institute for Economic Research (IWH), revised 2024.
    • Handle: RePEc:zbw:iwhdps:62023
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/304380/1/iwh-dp2023-06rev.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
    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. Brachert, Matthias & Dettmann, Eva & Schneider, Lutz & Titze, Mirko, 2024. ""Evaluation der Gemeinschaftsaufgabe 'Verbesserung der regionalen Wirtschaftsstruktur' (GRW)" durch einzelbetriebliche Erfolgskontrolle: Evaluationsbericht," IWH Studies 3/2024, Halle Institute for Economic Research (IWH).
    2. Andres, Raphaela & Niebel, Thomas & Viete, Steffen, 2024. "Do capital incentive policies support today’s digitization needs?," Telecommunications Policy, Elsevier, vol. 48(1).

    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. Dettmann, Eva & Becker, Claudia & Schmeißer, Christian, 2010. "Is there a Superior Distance Function for Matching in Small Samples?," IWH Discussion Papers 3/2010, Halle Institute for Economic Research (IWH).
    2. Lechner Michael & Miquel Ruth & Wunsch Conny, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, De Gruyter, vol. 8(4), pages 468-509, December.
    3. Vincenzo Caponi & Miana Plesca, 2009. "Post-secondary education in Canada: can ability bias explain the earnings gap between college and university graduates?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1100-1131, August.
    4. Markus Frölich, 2004. "Programme Evaluation with Multiple Treatments," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 181-224, April.
    5. Dettmann, Eva & Giebler, Alexander & Weyh, Antje, 2019. "flexpaneldid: A Stata command for causal analysis with varying treatment time and duration," IWH Discussion Papers 5/2019, Halle Institute for Economic Research (IWH).
    6. Aderonke Osikominu, 2013. "Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(1), pages 313-342.
    7. Bernd Fitzenberger & Stefan Speckesser, 2007. "Employment effects of the provision of specific professional skills and techniques in Germany," Empirical Economics, Springer, vol. 32(2), pages 529-573, May.
    8. Alic BÎRCA, 2023. "Workforce Participation in Active Labour Market Policies: A Comparative Analysis in EU Member States," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(2), pages 173-187, May.
    9. Blasco, Sylvie & Crépon, Bruno & Kamionka, Thierry, 2012. "The Effects of On-the-job and Out-of-Employment Training Programmes on Labor Market Histories," CEPREMAP Working Papers (Docweb) 1210, CEPREMAP.
    10. Kris Aerts & Kornelius Kraft & Julia Lang, 2015. "Profit sharing and innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(6), pages 1377-1392.
    11. Bergemann, Annette & Pohlan, Laura & Uhlendorff, Arne, 2016. "Job Creation Schemes in Turbulent Times," IZA Discussion Papers 10369, Institute of Labor Economics (IZA).
    12. Wunder, Christoph & Schwarze, Johannes & Krug, Gerhard & Herzog, Bodo, 2008. "Welfare effects of the euro cash changeover," European Journal of Political Economy, Elsevier, vol. 24(3), pages 571-586, September.
    13. Arranz, José María & García-Serrano, Carlos, 2024. "You'll never seek alone: The impact of active labour market policies on finding a job," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-20.
    14. Franz Buscha & Arnaud Maurel & Lionel Page & Stefan Speckesser, 2007. "The Effect of High School Employment on Educational Attainment : A Conditional Difference-in-Differences Approach," Working Papers 2007-40, Center for Research in Economics and Statistics.
    15. Eggert, Wolfgang & Krieger, Tim & Meier, Volker, 2010. "Education, unemployment and migration," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 354-362, June.
    16. Michael Lechner & Ruth Miquel, 2010. "Identification of the effects of dynamic treatments by sequential conditional independence assumptions," Empirical Economics, Springer, vol. 39(1), pages 111-137, August.
    17. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    18. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
    19. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," RWI Discussion Papers 41, RWI - Leibniz-Institut für Wirtschaftsforschung.
    20. Kugler Franziska & Schwerdt Guido & Wößmann Ludger, 2014. "Ökonometrische Methoden zur Evaluierung kausaler Effekte der Wirtschaftspolitik," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 105-132, June.

    More about this item

    Keywords

    causal inference; heterogeneous effects; place-based policy; staggered difference-in-differences; variation in treatment timing;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Z0 - Other Special Topics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:iwhdps:62023. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

    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.