The Labor Market Effects of Place-Based Policies: Evidence from England’s Neighbourhood Renewal Fund

Robert Calvert Jump and Adam Scavette

No 22-02, Working Paper from Federal Reserve Bank of Richmond

Abstract: Neighborhood renewal programs are a type of place-based policy that aim to revive underperforming localities. The literature on place-based policies has found mixed results regarding their effects on local labor market outcomes, but there are relatively few studies of policies that aim to improve local labor supply. In this paper, we examine the labor market effects of the Neighbourhood Renewal Fund, which targeted eighty-eight of the most deprived areas in England during the early 2000s as part of the Labour Government's National Strategy for Neighbourhood Renewal. The fund disbursed almost £3 billion for spending on community safety, education, health care and worklessness, with supply-side interventions making up the bulk of the program's spending on worklessness. Using a difference-in-differences approach, we find statistically significant impacts on local employment and out-of-work benefit claimants. Our results suggest that policy interventions to improve local labor supply can be a successful strategy for neighborhood renewal.

Keywords: Place-Based Policies; Urban Economics; Labor Supply; Employment (search for similar items in EconPapers)
JEL-codes: J21 J22 J48 R10 R58 (search for similar items in EconPapers)
Pages: 20
Date: 2022-03-23
New Economics Papers: this item is included in nep-geo, nep-hea and nep-ure
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DOI: 10.21144/wp22-02

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