Event Details

How do firms distribute resources internally, and does this result in spillovers far from headquarters? We describe French Multiple Establishment firm structure and show subsidies induce firms to hire new workers, mainly in new establishments and often in new commuting zones, with little evidence of reallocation. The most hiring responsive occupations are techies and support workers in line with R&D targeting. We estimate an employment spillover elasticity of .12 at the commuting zone level w

How do firms distribute resources internally, and does this result in spillovers far from headquarters? We describe French Multiple Establishment firm structure and show subsidies induce firms to hire new workers, mainly in new establishments and often in new commuting zones, with little evidence of reallocation. The most hiring responsive occupations are techies and support workers in line with R&D targeting. We estimate an employment spillover elasticity of .12 at the commuting zone level within industry and spillovers on the number of establishments, but weak effects in the commuting zone. Dispersed industries have half this elasticity and concentrated industries twice this elasticity. While subsidies may be given to headquarters in high-skill advanced areas, firms redistribute employment and spillovers more broadly.