Enterprise Zones and Employment: Evidence from New Jersey

Boarnet, Marlon G.; Bogart, William T.

doi:10.1006/juec.1996.0029

Cited by 148 publications

(165 citation statements)

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“…4 There is a literature that examines the effect of U.S. state-level geographically targeted incentive programs that we would also describe as finding mixed results. Several studies find positive effects including Papke (1994), O'Keefe (2004), andBillings (2008), and others finding small or no net effects including Boarnet and Bogart (1996), Bondonio and Engberg (2000), Greenbaum and Engberg (2004), Bondonio and Greenbaum (2007), Elvery (2009), andNeumark andKolko (2010). See Buss (2001) for a comprehensive review of this literature.…”

Section: Discussionmentioning

confidence: 99%

Do spatially targeted redevelopment programs spillover?

Hanson

Rohlin

2013

Regional Science and Urban Economics

119

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This paper estimates spillover effects from a spatially-targeted redevelopment program, the Federal Empowerment Zone (EZ), on neighboring and economically similar areas. EZs are a set of generous tax incentives and grants aimed at small, economically depressed areas of large U.S. cities. We find areas that border or are economically similar to EZ locations experience a decline in the number of establishments and employment compared to areas that border or are similar to rejected EZ applicants. We also demonstrate that using spillover prone areas to estimate program effects causes upward bias when the spillover is negative. We find that for many of our estimates, spillovers more than offset positive program effects, although there are instances when the net effect is small and positive.

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Section: Discussionmentioning

confidence: 99%

Do spatially targeted redevelopment programs spillover?

Hanson

Rohlin

2013

Regional Science and Urban Economics

119

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“…This means that municipalities chosen to include an enterprise zone are also those where it is easier for unemployed workers to …nd a job holding constant the characteristics that explain the treatment. This is a standard result in the evaluation literature where governments often intervene to "pick winners" (Boarnet and Bogart, 1996).…”

Section: [Insert T Able 2]mentioning

confidence: 95%

“…5 The key measure was that …rms needed to hire at least 20% of their labor force locally (after the third worker hired) in order to be exempted from wage taxes (i.e to be relieved from employers' contributions to the national health insurance and pension system). This is a signi…cant exemption that represents around 30% of the gross wage.…”

Section: Enterprise Zones In Francementioning

confidence: 99%

“…The formula of the synthetic indicator for a given area is the product of the …rst four criteria computed at the area level divided by the …fth criterium computed for the municipality where the area is located (see DIV, 2004). 5 Exemptions concern the speci…c following taxes: taxe professionnelle (business rate), impôt sur les béné…ces zoned for urban revitalization projects became designated as enterprise zones (moving from the second to the third tier of the zoning system of distressed areas). Using di¤erence in di¤erences techniques, they …nd that enterprise zones had only a modest e¤ect on the creation of establishments and salaried jobs.…”

Section: Enterprise Zones In Francementioning

confidence: 99%

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Do unemployed workers benefit from enterprise zones? The French experience

Gobillon

Magnac

Selod

2012

Journal of Public Economics

109

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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

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“…She finds that unemployment claims at offices within the zone declined by 19 percent, a decline of 1,500 claims per year at the mean. Boarnet and Bogart (1996) examine the effect of the New Jersey Enterprise Zone program and find that Enterprise Zone status had no effect on employment or property values at the municipal level. O'Keefe (2004) finds that the Enterprise Zone program in California increased employment growth by 3.1 percent relative to comparison areas in the first 6 years followed by a decrease in employment growth of 3.2 percent in years 7 to 13.…”

Section: Previous Studies Of Geographically-targeted Tax Incentivesmentioning

confidence: 99%

Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach

Hanson

2009

Regional Science and Urban Economics

128

143

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Abstract:The federal Empowerment Zone (EZ) program is a set of tax incentives targeted to areas of select cities. I estimate the effect of the EZ program on employment, poverty, and property values by comparing areas that received an EZ to areas that applied (and qualified), but were rejected. Because of endogeneity concerns, I use political representation to instrument for EZ designation. OLS results show a positive and statistically significant effect of the program on employment and poverty. IV estimates suggest the program had no effect on employment and poverty, and instead had a large statistically significant effect on property values. JEL Classification: H25; H53; H43; R5; J38 Keywords: Empowerment zone; Regional policy; Wage subsidy; Poverty reduction I would like to thank Stacy Dickert-Conlin, Pete Wilcoxen, John Yinger, Jeff Kubik, Jeff Clemens, Geoffrey Turnbull, Daniel McMillen, and an anonymous referee for helpful comments and suggestions. I would also like to thank administrators at the Department of Housing and Urban Development for assistance with data collection.2

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Enterprise Zones and Employment: Evidence from New Jersey

Cited by 148 publications

References 0 publications

Do spatially targeted redevelopment programs spillover?

Do spatially targeted redevelopment programs spillover?

Do unemployed workers benefit from enterprise zones? The French experience

Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach

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