What is the Impact of Opportunity Zones on Employment?

Abstract

We study the effect of Opportunity Zones (OZs) on job postings using data comprising the
near-universe of US online job postings. The OZs program grants tax breaks for investment in
distressed communities. Each state’s governor nominated OZs based on a variety of factors. We
use propensity score matching to account for those factors and a difference-in-differences model
over the matched sample to estimate the effect of the program. We find no evidence of an increase
in job postings overall, although we do find positive effects in urban areas, in areas with above
median Black population, and in some states.

Keywords: Opportunity Zones, Employment, Wages, Job Postings

JEL Classification: J18, J21, J31