Do Unemployed Workers Benefit from Enterprise Zones? The French Experience

68 Pages Posted: 29 Nov 2010

See all articles by Laurent Gobillon

Laurent Gobillon

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); National Institute of Demographic Studies (INED)

Thierry Magnac

Toulouse School of Economics; University of Toulouse 1 - Industrial Economic Institute (IDEI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Harris Selod

National Institute for Agricultural Research (INRA); National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); The World Bank; Paris School of Economics (PSE); World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2010

Abstract

This paper is a statistical evaluation of the 1997 enterprise zone program in France. We investigate whether the program increased the pace at which unemployed workers residing in targeted municipalities and surrounding areas find employment. The work relies on a two-stage analysis of unemployment spells drawn from an exhaustive dataset over the 1993-2003 period in the Paris region. We first estimate a duration model stratified by municipalities in order to recover semester-specific municipality effects net of individual observed heterogeneity. These effects are estimated both before and after the implementation of the program, allowing us to construct variants of difference-in-difference estimators of the impact of the program at the municipality level. Following extensive robustness checks, we conclude that enterprise zones have a very small but significant effect on the rate at which unemployed workers find a job. The effect remains localized and is shown to be significant only in the short run.

Keywords: enterprise zones, stratified duration model, unemployment

JEL Classification: H25, H71, J64

Suggested Citation

Gobillon, Laurent and Magnac, Thierry and Selod, Harris, Do Unemployed Workers Benefit from Enterprise Zones? The French Experience (October 2010). CEPR Discussion Paper No. DP8084, Available at SSRN: https://ssrn.com/abstract=1714856

Laurent Gobillon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

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Thierry Magnac

Toulouse School of Economics ( email )

Manufacture des Tabacs
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Toulouse, 31000
France

University of Toulouse 1 - Industrial Economic Institute (IDEI) ( email )

Manufacture des Tabacs
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Toulouse Cedex, F-31000
France

IZA Institute of Labor Economics ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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Harris Selod

National Institute for Agricultural Research (INRA) ( email )

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National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

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Malakoff Cedex, 1 92245
France

The World Bank ( email )

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