Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience

Anthony Briant (), Miren Lafourcade and Benoit Schmutz
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Anthony Briant: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper shows that urban geography matters to the effectiveness of place-based policies, using the French enterprise zone program as a case study. Whereas this program created more jobs in spatially integrated neighborhoods, its impact on local wages was only visible in the more isolated ones. In addition, a focus on the average impact of the program would lead to the conclusion that it mostly succeeded in displacing preexisting firms, but a lower level of spatial isolation was a clear determinant of the decision to create new firms from scratch.

Keywords: Business; Taxes (search for similar items in EconPapers)
Date: 2015-05
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Citations: View citations in EconPapers (63)

Published in American Economic Journal: Economic Policy, 2015, 7 (2), pp.88-124. ⟨10.1257/pol.20120137⟩

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Related works:
Journal Article: Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience (2015)
Working Paper: Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience (2015)
Working Paper: Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience (2013)
Working Paper: Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience (2012)
Working Paper: Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01156460

DOI: 10.1257/pol.20120137

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