The Impacts of Opportunity Zones on Zone Residents

27 Pages Posted: 22 Mar 2021 Last revised: 29 Jul 2021

See all articles by Matthew Freedman

Matthew Freedman

University of California, Irvine - Department of Economics

Shantanu Khanna

University of California, Irvine

David Neumark

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

Date Written: March 2021

Abstract

Created by the Tax Cuts and Jobs Act in 2017, the Opportunity Zone program was designed to encourage investment in distressed communities across the U.S. We examine the early impacts of the Opportunity Zone program on residents of targeted areas. We leverage restricted-access microdata from the American Community Survey and employ difference-in-differences and matching approaches to estimate causal reduced-form effects of the program. Our results point to modest, if any, positive effects of the Opportunity Zone program on the employment, earnings, or poverty of zone residents.

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Suggested Citation

Freedman, Matthew and Khanna, Shantanu and Neumark, David, The Impacts of Opportunity Zones on Zone Residents (March 2021). NBER Working Paper No. w28573, Available at SSRN: https://ssrn.com/abstract=3809536

Matthew Freedman (Contact Author)

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

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Shantanu Khanna

University of California, Irvine ( email )

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David Neumark

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

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