Do unemployed workers benefit from enterprise zones? The French experience

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACT Do Unemployed Workers Benefit from Enterprise Zones? The French ExperienceThis paper presents an impact evaluation of the French enterprise zone program which was initiated in 1997 to help unemployed workers find employment by granting a significant wagetax exemption (about one third of total labor costs) to firms hiring at least 20% of their labor force locally. Drawing from a unique geo-referenced dataset of unemployment spells in the Paris region over an extensive period of time (1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003), we are able to measure the direct effect of the program on unemployment duration, distinguishing between short-and mediumterm effects. This is done by implementing an original two-stage empirical strategy using individual data in the first stage and aggregate data and conditional linear matching techniques in the second stage. We show that although the enterprise zones program tended to "pick winners", it is likely to be cost-ineffective. It had a small but significant effect on the rate at which unemployed workers find a job (which is increased by a modest 3 percent). This effect is localized and significant only in the short run (i.e. at best during the 3 years that follow the start of the policy).JEL Classification: C21, J60, J68, R58

A long-term evaluation of the first generation of French urban enterprise zones

“…This so-called local employment stipulation ("clause d'emploi local" in French) was already in effect between 1997 and 2001, but evidence has been made that it was not strictly enforced (see Appendix A). This is consistent with the fact that Gobillon, Magnac, and Selod (2010) find a very small impact on local unemployment of EZ first wave. Real or supposed difficulties to hire adequately skilled workers amongst the population of the area may have discouraged the location of new firms.…”

“…These results are in line with Gobillon, Magnac, and Selod (2010). In a study on EZ in Paris region, they find no impact of first phase of the initiative on local unemployment rates in Paris metropolitan region.…”

Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls

“…In particular, enterprise and empowerment zone programs have received a renewed interest over recent years (see for instance, Busso, Gregory and Kline, 2012, Ham, Swenson, Imrohoroglu and Song, 2012, Gobillon, Magnac and Selod, 2012. Those programs consist in a variety of locally targeted subsidies aiming primarily at boosting local employment or the employment of residents.…”

Urban renewal after the Berlin Wall: a place-based policy evaluation

“…Ahlfeldt & Maennig, 2010;Autor, Palmer, & Pathak, 2014;Ellen, Schill, Susin, & Schwartz, 2001;Helms, 2012;Ioannides, 2002;Koster & Van Ommeren, 2013;Rossi-Hansberg et al, 2010;Schwartz, Ellen, Voicu, & Schill, 2006), we contribute to a literature that has assessed the impact of various local public policies via capitalization effects (e.g. Ahlfeldt & Kavetsos, 2014;Cellini, Ferreira, & Rothstein, 2010;Dachis, Duranton, & Turner, 2012;Dehring, Depken, & Ward, 2008;Eriksen & Rosenthal, 2010;Gibbons & Machin, 2005;Oates, 1969;Santiago, Galster, & Tatian, 2001) and economic effects of spatially targeted policies more generally (Baum-Snow & Marion, 2009;Boarnet & Bogart, 1996;Busso, Gregory, & Kline, 2013;Freedman, 2012Freedman, , 2014Freedman & Owens, 2011;Gobillon, Magnac, & Selod, 2012;Ham, Swenson, İmrohoroğlu, & Song, 2011;Kline, 2010;Kline & Moretti, 2013, 2014aMurray, 1999;Neumark & Kolko, 2010;Sinai & Waldfogel, 2005). 6 Our analysis also connects to a more general research strand in urban economics that examines the amenity value of cities (e.g.…”