Nadine Levratto, Denis Carré and Luc Tessier examine whether local aspects (the qualification of the workforce, the importance of the manufacturing industry, factors impacting the business climate, among others) influence employment changes at the establishment level. Exploiting data for a panel of French establishments operating in the manufacturing industry between 2003 and 2010 and various measurements regarding the local context, they are able to determine whether local factors exert a positive or negative effect on establishment growth. Their results suggest that more attention should be paid to locally defined policy tools and objectives.
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