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Bondonio, D., Fernandes, T. F. & Mamede, R. P. (2022). The impact on job-quality of firm-level support to innovation: Evidence from natural experiment conditions and linked employer-employee data in Portugal. Evaluation Review. 46 (5), 626-651
D. Bondonio et al., "The impact on job-quality of firm-level support to innovation: Evidence from natural experiment conditions and linked employer-employee data in Portugal", in Evaluation Review, vol. 46, no. 5, pp. 626-651, 2022
@article{bondonio2022_1731459702546, author = "Bondonio, D. and Fernandes, T. F. and Mamede, R. P.", title = "The impact on job-quality of firm-level support to innovation: Evidence from natural experiment conditions and linked employer-employee data in Portugal", journal = "Evaluation Review", year = "2022", volume = "46", number = "5", doi = "10.1177/0193841X221074765", pages = "626-651", url = "https://doi.org/10.1177/0193841X221074765" }
TY - JOUR TI - The impact on job-quality of firm-level support to innovation: Evidence from natural experiment conditions and linked employer-employee data in Portugal T2 - Evaluation Review VL - 46 IS - 5 AU - Bondonio, D. AU - Fernandes, T. F. AU - Mamede, R. P. PY - 2022 SP - 626-651 SN - 0193-841X DO - 10.1177/0193841X221074765 UR - https://doi.org/10.1177/0193841X221074765 AB - 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. ER -