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French enterprise zone program : did it help the residents of deprived neighborhoods ?

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  • Pauline Charnoz

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Abstract

This paper evaluates the effect of the French enterprise zone program on residents of these deprived neighborhoods. A second contribution is the evaluation of the composition effects in the zones and of externalities on the neighbors of the enterprise zones. The third contribution is the evaluation of a specific feature : the local hiring condition. It shows that there are a significant decreasing effect of the program on unemployment of residents and some small negative externalities on neighboring areas. There is also evidence of composition effects. There is thus two channels for the effect of the program on residents~: residents already there before designation (or that would have been there in absence of the program) got more jobs but the program also helps to attract or retain residents with better labor market outcomes. Moreover, the results suggest that the local hiring condition is working.

Suggested Citation

  • Pauline Charnoz, 2014. "French enterprise zone program : did it help the residents of deprived neighborhoods ?," ERSA conference papers ersa14p1465, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa14p1465
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    References listed on IDEAS

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    1. Mayer, Thierry & Mayneris, Florian & Py, Loriane, 2012. "The Impact of Urban Enterprise Zones on Establishments' Location Decisions: Evidence from French ZFUs," CEPR Discussion Papers 9074, C.E.P.R. Discussion Papers.
    2. 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.
    3. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    4. Corentin Trevien & Pauline Givord & Simon Quantin, 2012. "A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones," ERSA conference papers ersa12p776, European Regional Science Association.
    5. Givord, Pauline & Rathelot, Roland & Sillard, Patrick, 2013. "Place-based tax exemptions and displacement effects: An evaluation of the Zones Franches Urbaines program," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 151-163.
    6. Anthony Briant & Miren Lafourcade & Benoît Schmutz, 2015. "Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 88-124, May.
    7. Roland Rathelot & Patrick Sillard, 2008. "The Importance of Local Corporate Taxes in Business Location Decisions: Evidence From French Micro Data," Economic Journal, Royal Economic Society, vol. 118(527), pages 499-514, March.
    8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    9. Matthew Freedman, 2013. "Targeted Business Incentives and Local Labor Markets," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 311-344.
    10. 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.
    11. Ham, John C. & Swenson, Charles & İmrohoroğlu, Ayşe & Song, Heonjae, 2011. "Government programs can improve local labor markets: Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Community," Journal of Public Economics, Elsevier, vol. 95(7), pages 779-797.
    12. Sylvie Charlot & Claire Dujardin & Florence Goffette-Nagot & Nathalie Havet & Modibo Sidibé, 2012. "Accès à l'emploi dans les territoires de la politique de la ville : un appariement entre emplois et populations," Working Papers halshs-00956905, HAL.
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    More about this item

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • J00 - Labor and Demographic Economics - - General - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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