Working Paper: NBER ID: w27545
Authors: David Neumark; Timothy Young
Abstract: We take up two questions that have not been explored in research on enterprise zones. First, does a considerably longer-run perspective on the effects of state enterprise zones lead to different answers? And second, are there heterogeneous effects of enterprise zones that depend on the set of incentives these programs offer, which can vary widely? Our results indicate that whether we look at state enterprise zone programs through a longer-term lens, or through the lens of program heterogeneity, we generally do not find any consistent indication of beneficial effects of state enterprise zone programs, and if anything the longer-run effects are negative. The lack of positive effects is consistent with most of the prior evidence that focuses on effects that are short-term and homogeneous.
Keywords: Enterprise Zones; Economic Development; Job Creation; Poverty Reduction
JEL Codes: H25; J23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| state enterprise zones (R38) | unemployment rates (J64) |
| state enterprise zones (R38) | poverty levels (I32) |
| state enterprise zones (R38) | fraction of households with wage and salary income (J31) |
| state enterprise zones (R38) | average wages (J31) |
| state enterprise zones (R38) | employment rates (J68) |
| state enterprise zones (R38) | short-run improvements in unemployment rates (J65) |
| program features (hiring credits) (J68) | job creation (J68) |
| program features (C88) | effectiveness (C52) |