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• W4288049196 abstract "Public support to firm-level investments in innovation is one of the main mechanisms through which the European Union promotes socioeconomic convergence among regions and the creation of quality jobs is considered a necessary condition for the convergence of disadvantaged regional economies. This paper exploits the availability of natural experiment conditions and linked employer-employee microdata in Portugal to offer empirical evidence on the impact on relevant job-quality outcomes of a large EU-cohesion-policy program to support SMEs’ innovation investments. The analysis is implemented by means of stratification/coarsened exact matching model, combined with a difference in difference scheme, suitable to the specific impact identification conditions. Our results indicate that the policy intervention in Portugal had a positive impact on job-quality outcomes, with each supported firm generating an average of 4.9 additional standard-working-time jobs, +2.9 skilled jobs, and +2.0 permanent-contract jobs, compared to a counterfactual scenario of no public support. These impacts were at a cost of about 16,100€, 27,100€ and 39,400€ in public subsidies per additional job, respectively. We also estimate that the program impact was responsible for a 2.20€ (+17.8%) increase of the per-hour remuneration. These findings are robust to sensitivity analysis, in terms of alternative matching procedures and comparison groups, and they highlight the fact that increasing job-quality is a policy goal that can be pursued, at a reasonable cost, also by means of cohesion-policy support to innovation aimed at enhancing the competitiveness of SMEs. JEL classification: O1; R5; C23" @default.
• W4288049196 created "2022-07-27" @default.
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• W4288049196 date "2022-03-21" @default.
• W4288049196 modified "2023-10-18" @default.
• W4288049196 title "The Impact on Job-Quality of Firm-Level Support to Innovation: Evidence from Natural Experiment Conditions and Linked Employer-Employee Data in Portugal" @default.
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• W4288049196 doi "https://doi.org/10.1177/0193841x221074765" @default.
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