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EU Cohesion Policy Funds and Job Quality: A Counterfactual Impact Evaluation with Linked Employer-Employee Data
Daniele bondonio, Teresa Farinha-Fernandes, Ricardo Mamede

Last modified: 2015-09-05

Abstract


In this paper we used linked employer-employee micro-data from Portuguese firms over the years 2000s to estimate the impact on job quality of the direct support to firms investement projects provided through the EU cohesion policy funds. The job quality outcomes investigated in the paper are: jobs with standard working hours; higher education jobs; skilled jobs; security of jobs; and hourly compensation. The analysis exploits the existance of non-treated applicants that can be used as comparison group. Impact estimates are retrieved through an exact matching specification (our preferred estimation model) and a propensity score matching procedure (included for sensitivity analysis). Both specifications are implemented dynamically for successive cohorts of supported firms based on the exact dates of implementation of their supported projects. Our results indicate that the policy schemes funded by the EU cohesion policy fund appear to have contributed to improve different dimensions of job quality, compared to the counterfactual scenario of no public support

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