Journal Articles

Job creation and firm-specific location incentives

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Government economic development programmes provide opportunities for firms to leverage financial incentives for business expansion and relocation. This article examines the ability of these incentives to promote employment. Using establishment-level data from the state of Kansas as well as original firm-level survey data, I evaluate the effectiveness of financial incentives in creating jobs through recipient firms. My findings from the establishment-level data indicate that incentive programmes have no discernable impact on firm expansion, measured by job creation. In addition, the survey data suggest that incentive recipients highly recommend this programme to other firms, but few firms actually increased their employment in Kansas because of these incentives; similarly, very few firms would have left the state if they had not benefited from this programme. Thus, incentives have little impact on the relocation or expansion decisions of firms.

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Detail Information

Series Title

Journal of Public Policy

Call Number

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Publisher

New York : Cambridge University Press., 2017

Collation

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Language

English

ISBN/ISSN

0141814X

Classification

NONE

Content Type

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Media Type

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Carrier Type

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Edition

Volume 14, Number 1, March 2018, p. 85-112

Subject(s)

Public policy
incentives
Local economic development
job creation

Specific Detail Info

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Statement of Responsibility

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