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The build-up and duration of subsidy-induced employment evidence from U.K. regional policy

Lookup NU author(s): Professor Colin Wren


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The paper takes microlevel data on U.K. regional policy instruments and other financial assistance payments to industry to examine the time profile of assisted employment up to five years after the date of assistance. The theoretical analysis indicates factors bearing on the employment effect of industrial assistance and highlights the possibly key role played by the firm's access to private funds. The results from the regression analysis indicate that both the build-up and duration of subsidy-induced jobs vary between assistance form and firm, and that assistance is generally ineffective in large firms. Elsewhere, assisted jobs accumulate over a period of three years, but then are lost to policy at high rates.

Publication metadata

Author(s): Wren C

Publication type: Article

Publication status: Published

Journal: Journal of Regional Science

Year: 1994

Volume: 34

Issue: 3

Pages: 387-410

Print publication date: 01/08/1994

ISSN (print): 0022-4146

ISSN (electronic): 1467-9787

Publisher: Wiley


DOI: 10.1111/j.1467-9787.1994.tb00873.x


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