Business Incentives and Employment: What Incentives Work and Where?

摘要: State governments offer tax and location-based incentives to entice firms locate or expand operations in their state. We evaluate the effect of these on employment using a panel data Kentucky counties. These are unique because they contain information actual received rather than offered, an important distinction majority offered never claimed. Because offers incentive plans similar other states, results applicable states. Training have strong, positive economic activity, whereas more modest effect. effects differ with location county, almost no impact interior counties much larger, significant impacts along state borders. There few if any spillover adjacent