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Do Unemployed Workers Benefit from Enterprise Zones ? The French Experience

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  • Laurent Gobillon

    (Crest)

  • Thierry Magnac

    (Crest)

  • Harris Selod

    (Crest)

Abstract

This paper is a statistical evaluation of the 1997 enterprise zone program in France. Weinvestigate whether the program increased the pace at which unemployed workers residing intargeted municipalities and surrounding areas ?nd employment. The work relies on a two-stage analysis of unemployment spells drawn from an exhaustive dataset over the 1993-2003period in the Paris region. We ?rst estimate a duration model strati?ed by municipalities inorder to recover semester-speci?c municipality e¤ects net of individual observed heterogene-ity. These e¤ects are estimated both before and after the implementation of the program,allowing us to construct variants of di¤erence-in-di¤erence estimators of the impact of theprogram at the municipality level. Following extensive robustness checks, we conclude thatenterprise zones have a very small but signi?cant e¤ect on the rate at which unemployedworkers ?nd a job. The e¤ect remains localized and is shown to be signi?cant only in theshort run.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2010-45.

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Length: 66
Date of creation: 2010
Date of revision:
Handle: RePEc:crs:wpaper:2010-45

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  1. GOBILLON Laurent & MAGNAC Thierry & SELOD Harris, 2007. "The effect of location on finding a job in the Paris region," Research Unit Working Papers 0703, Laboratoire d'Economie Appliquee, INRA.
  2. Alan Manning & Jörn-Steffen Pischke, 2006. "Comprehensive Versus Selective Schooling in England and Wales: What Do We Know?," CEE Discussion Papers 0066, Centre for the Economics of Education, LSE.
  3. Raphael W. Bostic & Allen C. Prohofsky, 2006. "Enterprise Zones and Individual Welfare: A Case Study of California," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 175-203.
  4. James J. Heckman, 1989. "Choosing Among Alternative Nonexperimental Methods for Estimating the Impact of Social Programs: The Case of Manpower Training," NBER Working Papers 2861, National Bureau of Economic Research, Inc.
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  6. O'Keefe, Suzanne, 2004. "Job creation in California's enterprise zones: a comparison using a propensity score matching model," Journal of Urban Economics, Elsevier, vol. 55(1), pages 131-150, January.
  7. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2010. "Do unemployed workers benefit from enterprise zones? The French experience," TSE Working Papers 10-201, Toulouse School of Economics (TSE).
  8. Patrick Sillard & Roland Rathelot, 2008. "Zones Franches Urbaines : quels effets sur l'emploi salarié et les créations d'établissements ?," Économie et Statistique, Programme National Persée, vol. 415(1), pages 81-96.
  9. Cynthia L. Rogers & Jill L. Tao, 2004. "Quasi-Experimental Analysis of Targeted Economic Development Programs: Lessons from Florida," Economic Development Quarterly, , vol. 18(3), pages 269-285, August.
  10. Mauer, David C. & Ott, Steven H., 1999. "On the Optimal Structure of Government Subsidies for Enterprise Zones and Other Locational Development Programs," Journal of Urban Economics, Elsevier, vol. 45(3), pages 421-450, May.
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  12. Hanson, Andrew, 2009. "Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 721-731, November.
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  16. Bondonio, Daniele & Greenbaum, Robert T., 2007. "Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 121-136, January.
  17. Peter S. Fisher, 1997. "Tax and spending incentives and enterprise zones," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 109-138.
  18. Ridder, Geert & Tunali, Insan, 1999. "Stratified partial likelihood estimation," Journal of Econometrics, Elsevier, vol. 92(2), pages 193-232, October.
  19. Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, vol. 68(1), pages 1-19, July.
  20. Sylvie Blasco & François Fontaine, 2010. "Étudier le non-recours à l'assurance chômage," Revue économique, Presses de Sciences-Po, vol. 0(5), pages 933-943.
  21. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
  22. Leslie E. Papke, 1991. "Tax Policy and Urban Development: Evidence From The Indiana Enterprise Zone Program," NBER Working Papers 3945, National Bureau of Economic Research, Inc.
  23. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  24. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
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