Einiö, Elias and Overman, Henry G. ORCID: 0000-0002-3525-7629 (2020) The effects of supporting local business: evidence from the UK. Regional Science and Urban Economics, 83. ISSN 0166-0462
Text (The effects of supporting local business)
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Abstract
This paper assesses the effects of a significant place-based intervention that targeted local businesses in deprived areas in the UK. To gain identification, we use data at a fine spatial scale and a regression discontinuity design exploiting the eligibility deprivation rank rule based on a pre-determined deprivation index. We detect no overall effects on employment in treated areas but find a significant displacement of employment from nearby untreated areas, corresponding to around 10% of local employment. The results suggest that indirect displacement effects may substantially weaken the ability of local support programmes targeting the non-tradable sector to reduce economic inequality.
Item Type: | Article |
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Official URL: | https://www.journals.elsevier.com/regional-science... |
Additional Information: | © 2020 The Authors |
Divisions: | Geography & Environment |
Subjects: | H Social Sciences > HD Industries. Land use. Labor |
JEL classification: | R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J20 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General |
Date Deposited: | 17 Dec 2019 13:15 |
Last Modified: | 17 Oct 2024 17:29 |
URI: | http://eprints.lse.ac.uk/id/eprint/102935 |
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