详情
The Effect of Government Subsidies on Employment: Evidence from China’s Listed
This study develops an intertemporal model to investigate the causal relationship between government subsidies and employment and employs firm-level panel data to procure an estimation of the elasticities of
government subsidies concerning employment, which is approximately 0.7 percent. To address endogeneity issues, we construct a novel Bartik shift-share instrumental variable for government subsidies. In heterogeneity analysis, our study discloses that government subsidies create a plethora of jobs, most predominately for individuals with advanced degrees, such as masters or doctorate. Additionally, our article identifies the top five industries that are most influenced by the effects of government subsidies.