Financial incentives are often used by policymakers to attract big businesses to locate in a place and deliver jobs and growth.
But do they actually make any difference?
Economic development and incentives expert Tim Bartik joins Andrew Carter to debunk the biggest assumptions made by policymakers in this field, revealing that 75% of the time, the same number of jobs would have been created without any incentives at all.
Tim and Andrew cover recent high-profile cases such as Amazon’s much-criticised plans for the location of its second headquarters in Virginia and New York City and Wisconsin’s $4 billion state and local tax incentives to Foxxconn in the promise of 13,000 new jobs that never materialised.
Tim reveals the opportunity costs, spillovers and leakages that offering a high cash-per-job price tag create, and instead sets out a better way to achieve inclusive local economic growth and good jobs for all.
Background reading:
City Talks: Tim Leunig
City Talks: Can we address the housebuilding crisis by building on the ‘grey belt’?
City Talks: Sharing the benefits of a high-tech economy
City Talks: The UK’s towns tsar
City Minutes: Key races in the 2024 Metro mayor elections
City Minutes: Why mayoral elections matter
City Minutes: The geography of charitable giving in the UK
City Minutes: The latest data on economic performance across the UK
City Minutes: How places have fared since 2010
City Talks: Are we seeing the arrival of the post-retail High Street?
City Leaders: Cllr Huw Thomas, Leader of Cardiff City Council
City Leaders: Cllr Mike Ross, Leader of Hull City Council
City Talks: Will the North rise again?
City Leaders: Cllr Jane Mudd, leader of Newport City Council
City Leaders: John Stevenson MP, Chair of the Northern Research Group
City Minutes: Should more people use public transport to get to work in UK cities?
City Leaders: Mayor Marvin Rees
City Leaders: Mayor Steve Rotheram
City Minutes: What should the next phase of devolution look like?
City Minutes: Why Glasgow should implement bus franchising
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