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.

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