Advanced Search
MyIDEAS: Login to save this paper or follow this series

The impact of French Zones Franches Urbaines on employment and business creation

Contents:

Author Info

  • R. RATHELOT

    (Insee)

  • P. SILLARD

    (Insee)

Abstract

In 2004, 41 Zones Franches Urbaines (ZFU) have replaced less generous Zones de Redynamisation Urbaine (ZRU). ZFUs are particularly generous Enterprise Zones schemes in which establishments are exempted from all taxes and social contributions for 5 years. A first wave of ZFUs was zoned in 1997, followed by a second one in 2004 and a third one in 2006. In spite of the cost of such policies (the net cost of the second-wave ZFUs was around 125 million euros in 2005), the impact has never been assessed by econometricians. In this study, we aim to evaluate the net effect of the ZFU policy on both employment and business creations, using the transformation of less generous ZRUs into ZFUs in 2004. We use micro data on establishments and jobs at an infra-municipal scale. Differences-in-differences as well as standard propensity score matching are used to try to take selection bias into account. We finally identify a significantly positive effect on both business creations and employment. Yet, these effects are weak especially when compared to the magnitude of the costs.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.insee.fr/fr/publications-et-services/docs_doc_travail/G2007-11.pdf
File Function: Document de travail de la DESE numéro G2007-11
Download Restriction: no

Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2007-11.

as in new window
Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:crs:wpdeee:g2007-11

Contact details of provider:
Postal: 15 Boulevard Gabriel Peri 92244 Malakoff Cedex
Phone: 01 41 17 50 50
Email:
Web page: http://www.insee.fr
More information through EDIRC

Related research

Keywords: local employment; local policies; enterprise zones; evaluation;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:crs:wpdeee:g2007-11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D3E).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.