Wage and Skills’ Spillover Effects of Million Dollar Projects

Grant description:

This project will explore the effect of large-scale business openings subsidized with tax and related incentives to estimate the effect of these public investments on labor markets—not just on wages, but also on the skills demanded by employers post-opening. The author will use data on government subsidized projects from 2013–2019, including manufacturing, distribution centers, headquarters and data centers, as well as runner-up locations for these projects, to help identify the causal effect of the “million-dollar projects.” This research will provide new insights on the spillover effects of public investments when designing place-based policy.