Though limited, local authorities possess a number of powers by which they can attempt to increase employment. A direct labour subsidy to a small competitive industry can never destroy jobs absolutely. However the same measure may create or destroy jobs relative to the effect of an indirect subsidy to a particular type of property. Different indirect subsidies may create or destroy jobs absolutely or relatively. Hence empirical research must precede policy formulation.
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References
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Allen, R.G.D. (1938). Mathematical Analysis for Economists. Macmillan, London.
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Botham, R. (1984). "Employment Subsidies: A New Direction for Local Government Initiatives". Regional Studies, Vol. 18: 84-88.
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Cross, C.A. (1973). The Local Government Act 1972. Sweet and Maxwell, London.