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Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program

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  • Busso, Matias

    (U of Michigan)

  • Kline, Patrick

    (Yale U)

Abstract

This paper evaluates the impact of Round I of the federal urban Empowerment Zone (EZ) program on neighborhood level labor and housing market outcomes over the period 1994-2000. Using four decades of Census data in conjunction with information on the proposed boundaries of rejected EZs, we find that neighborhoods receiving EZ designation experienced substantial improvements in labor market conditions and moderate increases in rents relative to rejected and future zones. These effects were accompanied by small changes in the demographic composition of the neighborhoods, though evidence from disaggregate Census tabulations suggests that these changes account for little of the observed improvements.

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File URL: http://economics.yale.edu/sites/default/files/files/Working-Papers/wp000/ddp0036.pdf
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Bibliographic Info

Paper provided by Yale University, Department of Economics in its series Working Papers with number 36.

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Date of creation: Feb 2008
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Handle: RePEc:ecl:yaleco:36

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