The effect of firm‐based subsidies on workplace and resident employment

Do firm‐specific subsidies create local jobs, and do those jobs go to local residents? Linking Good Jobs First subsidy records to Longitudinal Employer‐Household Dynamics Origin‐Destination Employment Statistics employment data, we estimate stacked event studies using geocoded census‐tract awards in six states and national county‐level mega‐deals exceeding $100 million. At the tract level, workplace employment rises only for large awards, with gains concentrated in the subsidized tract and not offset nearby. At the county level, mega‐deals raise workplace but not resident employment; origin‐destination flows show gains accrue primarily to out‐of‐county commuters. Back‐of‐the‐envelope announced subsidy costs range from $18,233 to $69,749 per job.