Seminar in Macroeconomics - Future versus Present Labor Markets: the Trade-off of Place-based Policies
Time
Monday, 15. May 2023
12:00 - 13:15
Location
F428
Organizer
Speaker:
Max Brès (European University Institute)
Future versus Present Labor Markets: the Trade-off of Place-based Policies
(with Philipp Kircher and David Koll)
Abstract: In western economies, the structural decline of manufacturing sectors left formerly flourishing regions in distress. Despite significant resources allocated to place-based policies, local labor market conditions persist over time. Making use of a French policy which re-allocated subsidies across sectors, we provide evidence that policy makers could face a trade-off between subsidising low-growth sectors with large short-term employment benefits or subsidising high-growth sectors with initially smaller but persistent labor market improvements.