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Enterprise Zones and Individual Welfare: A Case Study of California

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  • Raphael W. Bostic
  • Allen C. Prohofsky

Abstract

. This research examines the benefits to individual workers hired under California's enterprise zone (EZ) program. The analysis reveals that EZ program participation has a positive impact on both wages and adjusted gross income of EZ participants, and the benefits appear to be greater for taxpayers with very low initial income. It is unclear whether the income boost from EZ participation is permanent or transitory. We also find that participation in the EZ program increases the likelihood that an individual will file a tax return. Because this is a case study, we caution that additional analysis is needed to fully determine the extent to which these results can be generalized.

Suggested Citation

  • 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, May.
  • Handle: RePEc:bla:jregsc:v:46:y:2006:i:2:p:175-203
    DOI: 10.1111/j.0022-4146.2006.00438.x
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    Cited by:

    1. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2012. "Do unemployed workers benefit from enterprise zones? The French experience," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 881-892.
    2. Sumei Zhang, 2019. "Rethinking U.S. enterprise zones: The role of research design in program evaluation," Local Economy, London South Bank University, vol. 34(6), pages 545-571, September.
    3. Margaret Dewar, 2013. "Paying Employers to Hire Local Workers in Distressed Places," Economic Development Quarterly, , vol. 27(4), pages 284-300, November.
    4. Gobillon, Laurent & Magnac, Thierry & Selod, Haris, 2012. "L’effet des Zones Franches Urbaines sur le Retour à l’Emploi," CEPREMAP Working Papers (Docweb) 1209, CEPREMAP.
    5. Sumei Zhang, 2015. "Impacts of Enterprise Zone Policy on Industry Growth," Economic Development Quarterly, , vol. 29(4), pages 347-362, November.
    6. 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.
    7. Sumei Zhang, 2020. "Do Research Methods Matter in Enterprise Zone Outcome Evaluations?," Economic Development Quarterly, , vol. 34(3), pages 299-309, August.

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