Affiliation:
1. Stuart Handler Department of Real Estate University of Illinois at Chicago Chicago Illinois USA
2. Department of Economics Kent State University Kent Ohio USA
Abstract
AbstractThis paper provides estimates of local employment multipliers from large, publicly subsidized firms. We use a synthetic control weighted difference‐in‐difference estimation procedure that matches treated areas with comparison areas to generate local employment multiplier estimates. We show that local employment multiplier estimates have a high degree of uncertainty, with a wide range of point estimates (both positive and negative) and varying degrees of statistical significance. There is a concentration of positive employment multipliers from manufacturing facilities, but little correlation between estimated multipliers and subsidy value. We demonstrate that our approach produces drastically different results than a traditional difference‐in‐difference approach.
Subject
Environmental Science (miscellaneous),Development