Do Some Enterprise Zones Create Jobs?

48 Pages Posted: 11 Aug 2009 Last revised: 29 Oct 2014

See all articles by Jed Kolko

Jed Kolko

Public Policy Institute of California

David Neumark

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

Date Written: August 2009

Abstract

We study how the employment effects of enterprise zones vary with their location, implementation, and administration, based on evidence from California. We use new establishment-level data and geographic mapping methods, coupled with a survey of enterprise zone administrators. Overall, the evidence indicates that enterprise zones do not increase employment. However, the evidence also suggests that the enterprise zone program has a more favorable effect on employment in zones that have a lower share of manufacturing and in zones where managers report doing more marketing and outreach activities. On the other hand, devoting more effort to helping firms get hiring tax credits reduces or eliminates any positive employment effects, which may be attributable to idiosyncrasies of California's enterprise zone program during the period we study.

Suggested Citation

Kolko, Jed and Neumark, David, Do Some Enterprise Zones Create Jobs? (August 2009). NBER Working Paper No. w15206, Available at SSRN: https://ssrn.com/abstract=1444708

Jed Kolko

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David Neumark (Contact Author)

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