Articlegreen2015

Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience

Anthony Briant · Miren Lafourcade · Benoît Schmutz

148 citations0/0 files storedAmerican Economic Journal Economic Policy

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Economic Zones and Regional Development Urban, Neighborhood, and Segregation Studies Regional Economics and Spatial Analysis

Abstract

This paper shows that urban geography matters to the effectiveness of place-based policies, using the French enterprise zone program as a case study. Whereas this program created more jobs in spatially integrated neighborhoods, its impact on local wages was only visible in the more isolated ones. In addition, a focus on the average impact of the program would lead to the conclusion that it mostly succeeded in displacing preexisting firms, but a lower level of spatial isolation was a clear determinant of the decision to create new firms from scratch. (JEL H25, H32, L52, R32, R38)

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References

2012The economic impact of Special Economic Zones: Evidence from Chinese municipalities 2013Assessing the Incidence and Efficiency of a Prominent Place Based Policy 2010Do enterprise zones create jobs? Evidence from California’s enterprise zone program 2010Government programs can improve local labor markets: Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Community 2006Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies 2000Enterprise zones and local employment: evidence from the states’ programs 2003Job creation in California's enterprise zones: a comparison using a propensity score matching model 2012Place-based tax exemptions and displacement effects: An evaluation of the Zones Franches Urbaines program

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2017How Local Are Labor Markets? Evidence from a Spatial Job Search Model 2020Place-based policies, state-led industrialisation, and regional development: Evidence from China's Great Western Development Programme 2020Does EU regional policy promote local TFP growth? Evidence from the Italian Mezzogiorno 2015The impact of Urban Enterprise Zones on establishment location decisions and labor market outcomes: evidence from France

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