Arbeitspapier

Can Placement of Governmental Sector Jobs Spur Private Sector Employment and Performance?

We analyse the impact of establishment of governmental sector jobs on private sector employment based on Norwegian population-wide administrative-register data. Based on precise geographical information on the location of jobs, differential treatment intensities yield identification of causal effects. The results suggest that governmental employment has positive effects on private sector employment in the close proximity of the stimulus area. In the same area, we also observe positive short-term effects on wage growth and on firms' sales. Over time, only employment effects prevail. Two different types of placebo tests give support to the causal interpretation of the main results.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 13993

Classification
Wirtschaft
Geographic Labor Mobility; Immigrant Workers
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Subject
regional labour markets
central government jobs
job creation

Event
Geistige Schöpfung
(who)
Dale-Olsen, Harald
Schone, Pal
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2020

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dale-Olsen, Harald
  • Schone, Pal
  • Institute of Labor Economics (IZA)

Time of origin

  • 2020

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