Document Type

Working Paper

Publication Date

6-23-2026

College/Unit

Regional Research Institute

Document Number

Working Paper Number 2026-02

Department/Program/Center

Regional Research Institute

Abstract

Recent legislation for place-based investments has illustrated a growing debate among U.S. policymakers over strategically targeting specific areas to stimulate economic development. Although the literature on placebased policies is mixed, there is evidence that the benefits of local job-creation programs are most significant in areas with the greatest economic distress. However, most place-based spending in the U.S. comes from state and local business tax incentives that generally do not target distressed places, thus limiting research on existing customized business service and job-training programs for distressed places. This paper aims to fill this gap in the literature by using matching methods to analyze the impact of place-based jobs policies administered and funded by the Appalachian Regional Commission on employment, wages, and establishment counts in distressed counties. Results from this study indicate that grants administered by the ARC have a modest but statistically significant impact on county annual average wages and employment, with the effects being most pronounced in the region’s most economically distressed areas. There is some indication of crowding out of establishments following the receipt of a grant, possibly because grants are targeted at better-performing, already established firms.

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