A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones

Des incitations fiscales attractives: une évaluation de long terme de la première génération des Zones Franches Urbaines

Pauline Givord (), Simon Quantin and Corentin Trevien ()
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Pauline Givord: INSEE - Institut national de la statistique et des études économiques (INSEE), CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique
Corentin Trevien: INSEE - Institut national de la statistique et des études économiques (INSEE)

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Abstract: This paper provides new empirical assessment evidence on the efficiency of locallytargeted tax incentives in revitalizing distressed areas. We focus on the first generation of the French "Enterprise Zone" intiative, implemented in 1997 in continental France. We use new georeferenced panel data at the firm level over a twelve-year period. The zone designation process suggests two empirical strategies: difference-in-differences regressions with subclassification on the propensity score and regression discontinuity design. Both methods yield similar results. We highlight a strong positive impact of the Entreprise Zone policy on employment and business location during the first years of the policy. However, this favourable assessment has to be moderated because it seems mostly due to firms that are less prone to stimulate either local employment or economic activities. In addition, after some years, the early positive results are reduced as the increase in business locations is partially offset by more frequent business discontinuations.

Keywords: Propensity Score Matching; Evaluation; Local Employment; Enterprise Zones; Zones Franches Urbaines; Emploi Local; Matching sur le score de propension; Évaluation (search for similar items in EconPapers)
Date: 2012-02
Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05474268v1
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Related works:
Journal Article: A long-term evaluation of the first generation of French urban enterprise zones (2018)
Working Paper: A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones (2014)
Working Paper: A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones (2012)
Working Paper: A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones (2012)
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