Seminar in Economics | Thomas Lemieux
Welcome to this Higher Seminar in Economics organised by the Department of Economics, SSE. The seminar speaker is Thomas Lemieux, University of British Columbia, presenting "Who Benefits from Place-Based Policies? Evidence from Matched Employer-Employee Data".
We study the effect of a large German place-based policy on workers’ outcomes using a spatial discontinuity research design induced by EU-wide rules governing the program parameters. The place-based program subsidizes investments aimed at creating jobs, where the subsidy rate varies across labor market regions. The analysis is conducted using 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 funded establishments create jobs, but that most of the employment increase is driven by commuters living in different municipalities. A sizable share of new hires are individuals who were previously unemployed or marginally employed. There is little evidence of funded establishments poaching workers from other local firms. Employment in these other establishments remain stable, suggesting that subsidizing some establishments does not have spillover effects (positive or negative) on other local establishments. While the place-based policy has some positive employment effects on the targeted local area, its impact is diluted because many of the new jobs are held by commuters, and limited by the lack of positive spillover effects.
Thomas Lemieux is a Professor at the Vancouver School of Economics at the University of British Columbia. Most of his recent research revolves around the issue of earnings inequality in Canada and other countries. He is also interested in econometric methods used to analyze the earnings distribution and regression discontinuity designs.
More about the Speaker
This seminar takes place at Stockholm School of Economics, Sveavägen 65, in room 750.
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