Do Enterprise Zones Create Jobs? Evidence from California's Enterprise Zone Program

53 Pages Posted: 9 Dec 2008 Last revised: 29 Oct 2014

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Jed Kolko

Public Policy Institute of California

Date Written: December 2008

Abstract

We use new establishment-level data and geographic mapping methods to improve upon evaluations of the effectiveness of state enterprise zones, focusing on California's program. Because zone boundaries do not follow census tracts or zip codes, we created digitized maps of original zone boundaries and later expansions. We combine these maps with geocoded observations on most businesses located in California. The evidence indicates that enterprise zones do not increase employment. We also find no shift of employment toward the lower-wage workers targeted by enterprise zone incentives. We conclude that the program is ineffective in achieving its primary goals.

Suggested Citation

Neumark, David and Kolko, Jed, Do Enterprise Zones Create Jobs? Evidence from California's Enterprise Zone Program (December 2008). NBER Working Paper No. w14530, Available at SSRN: https://ssrn.com/abstract=1312625

David Neumark (Contact Author)

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-824-8496 (Phone)
949-824-2182 (Fax)

HOME PAGE: http://www.socsci.uci.edu/~dneumark/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jed Kolko

Public Policy Institute of California ( email )

500 Washington Street
Suite 800
San Francisco, CA 94111
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
56
Abstract Views
1,190
rank
409,145
PlumX Metrics