Enterprise zones and local employment: evidence from the states’ programs

Bondonio, Daniele; Engberg, John

doi:10.1016/s0166-0462(00)00042-9

“…Such a selection process lends itself quite naturally to a fuzzy regression discontinuity design analysis. In this setting, we find robust evidence against large employment effects, in line with recent findings in other contexts by Neumark and Kolko (2010), Bondonio and Engberg (2000), and Bondonio and Greenbaum (2007).…”

Section: Abstract Replacing Churches and Mason Lodges? Tax Exemptionssupporting

confidence: 90%

“…Our second contribution is to provide such a perspective, using comparisons within the ZRR program (between firms that benefit from different incentives) and comparisons across programs (between the ZRR program and its urban counterpart). Just like Bondonio and Engberg (2000), we find that no version of the ZRR program had a significant impact.…”

mentioning

confidence: 79%

“…Interestingly, there are also recent evaluations which find positive impacts -in particular Busso and Kline (2008); Busso et al (2013), Ham et al (2011), and, in France, Givord et al (2013) and Givord et al (2012). As illustrated by Bondonio and Engberg (2000), a comparative perspective is needed to draw more general lessons on how to design the incentives. Our second contribution is to provide such a perspective, using comparisons within the ZRR program (between firms that benefit from different incentives) and comparisons across programs (between the ZRR program and its urban counterpart).…”

mentioning

confidence: 99%

See 1 more Smart Citation

Replacing churches and mason lodges? Tax exemptions and rural development

Behaghel

¹

,

Lorenceau

²

,

Quantin

³

2015

Journal of Public Economics

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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. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 7808 December 2013 ABSTRACT Replacing Churches and Mason Lodges? Tax Exemptions and Rural Development *This paper uses regression discontinuity design to provide quasi-experimental estimates of the impact of a tax credit program targeted at rural areas in France, including corporate and payroll tax exemptions. We find no impact of the program on total employment or the number of businesses, and no impact of the different program components on targeted subsets of firms. Comparison with a contemporaneous urban scheme suggests ways the incentives of the rural program could be targeted more effectively. Governments across the world issue tax credits and subsidies to disadvantaged labor markets in an effort to reduce spatial inequalities. Examples of these schemes include socalled"EZ programs"like the state-level Enterprise Zone or the federal Empowerment Zone programs in the US. However, evidence on the effectiveness of EZs is mixed; moreover, these programs remain ...

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“…7 This period includes the implementation date of the enterprise zone program (January 1, 1997) and allows us to study the e¤ect of enterprise zones not only in the short run but also in the medium run. These unemployment spells may end when the unemployed …nd a job, drop out of the labor force, leave unemployment for an unknown reason or when the spell is right censored.…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

“…In addition, the mobility of unemployed does not seem to be a key issue as discussed in Gobillon et al (2011). 7 We arti…cially censored the few spells which lasted longer than four years. This is because the assumptions underlying our duration model described below are unlikely to be satis…ed for very long spells.…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

Do unemployed workers benefit from enterprise zones? The French experience

Gobillon

¹

,

Magnac

²

,

Selod

³

2012

Journal of Public Economics

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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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