The (Displacement) Effects of Spatially Targeted Enterprise Initiatives: Evidence from UK LEGI
Einiö, Elias; Overman, Henry (2016-03-07)
Einiö, Elias
Overman, Henry
Valtion taloudellinen tutkimuskeskus VATT
07.03.2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2018042618620
https://urn.fi/URN:NBN:fi-fe2018042618620
Tiivistelmä
We investigate the impacts of a significant area-based intervention (LEGI) that aimed to increase employment and entrepreneurial activity in 30 disadvantaged areas across England. We examine the spatial pattern of effects at a fine spatial scale using panel data for small geographic units and a regression discontinuity design that exploits the programme eligibility rule. The results indicate considerable local displacement effects. Employment increases in treated areas close to the treatment area boundary at the cost of significant employment losses in untreated localities just across the boundary. These differences vanish quickly when moving away from the boundary and do not persist after the programme is abolished. These findings support the view that area-based interventions may have considerable negative displacement effects on untreated parts of the economy. This displacement can substantially reduce (or in this case eliminate) any net benefits.
Tutkimusteema
Economic growth, Taloudellinen kasvu, Labour market, Työmarkkinat, Local public economics, Kunnallistalous, Regional development, Aluekehitys, Labor market and policies promoting economic growth, Työmarkkinat ja kasvua tukeva politiikka
JEL
H250 - Business Taxes and Subsidies including sales and value-added (VAT), J200 - Time Allocation; Work Behavior; Employment Determination and Creation; Human Capital, O400 - Economic Growth and Aggregate Productivity: General (includes data sources), R110 - Regional Economic Activity: Growth, Development, and Changes
Avainsanat
Place-based policy, Programme evaluation, Displacement, Employment
Kokoelmat
- VATT Working Papers [164]