Subsidized labour (ETI) and firms

By Isaac Marcelin & Malokele Nanivazo

Combining information from comparative case studies, this study will examine causal impact of Employment Tax Incentive (ETI) on a variety of firm level outcomes including productivity, operating income, trade, investment, and debt ratio. It will exploit the fact that many firms took up the wage subsidy while others rejected it as an exogenous event to constructs synthetic control groups to derive the counterfactual of the cases studied. To evaluate whether the effect is not driven by firm’s resource intensities and geography, the analysis will be performed across types of endowments, industries, and regions.