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Stimulating Local Public Employment: Do General Grants Work?
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Institute for Housing and Urban Research. Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2014 (English)In: American Economic Journal: Economic Policy, ISSN 1945-7731, E-ISSN 1945-774X, Vol. 6, no 1, 167-192 p.Article in journal (Refereed) Published
Abstract [en]

We apply the regression kink design to the Swedish grant system and estimate causal effects of intergovernmental grants on local public employment. Our robust conclusion is that grants do not stimulate local public employment. We find no statistically significant effects on total local public employment, and we can exclude even moderate effects. When disaggregating the total effect by sector, we find that personnel in the traditional welfare sectors are unaffected, a conclusion which applies to both publicly and privately employed in these sectors. The only positive and statistically significant effect of grants is that on administrative personnel.

Place, publisher, year, edition, pages
2014. Vol. 6, no 1, 167-192 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-247820DOI: 10.1257/pol.6.1.167ISI: 000331195800007OAI: oai:DiVA.org:uu-247820DiVA: diva2:797566
Available from: 2015-03-24 Created: 2015-03-24 Last updated: 2017-12-04Bibliographically approved

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Dahlberg, Matz

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