What is the Impact of Opportunity Zones on Employment?

23 Pages Posted: 26 Aug 2020 Last revised: 29 Apr 2021

See all articles by Rachel M. B. Atkins

Rachel M. B. Atkins

New York University (NYU) - Department of Management and Organizational Behavior

Pablo Hernandez-Lagos

New York University, Abu Dhabi

Cristian Jara-Figueroa

Massachusetts Institute of Technology (MIT)

Robert Seamans

New York University (NYU) - Leonard N. Stern School of Business

Date Written: April 28, 2021

Abstract

We use a large database of online job vacancies from January 2015 to December 2020 to study the effect of Opportunity Zones (OZs) on vacancies. The OZs program grants tax-breaks for investment in distressed communities and was implemented throughout 2018. Governors of each state 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 weak evidence of an increase in job vacancies after two years, although stronger effects appear in some low-income communities.

Keywords: Opportunity Zones, Employment, Wages, Job Postings

JEL Classification: J18, J21, J31

Suggested Citation

Atkins, Rachel and Hernandez-Lagos, Pablo and Jara-Figueroa, Cristian and Seamans, Robert, What is the Impact of Opportunity Zones on Employment? (April 28, 2021). NYU Stern School of Business, Available at SSRN: https://ssrn.com/abstract=3673986 or http://dx.doi.org/10.2139/ssrn.3673986

Rachel Atkins

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

Pablo Hernandez-Lagos

New York University, Abu Dhabi ( email )

PO Box 903
NYC, NY 10276-0903
United States

HOME PAGE: http://pablohernandez-lagos.com

Cristian Jara-Figueroa

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Robert Seamans (Contact Author)

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

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