Do Enterprise Zones Create Jobs? Evidence from California's Enterprise Zone Program

David Neumark and Jed Kolko

No 14530, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use new establishment-level data and geographic mapping methods to improve upon evaluations of the effectiveness of state enterprise zones, focusing on California's program. Because zone boundaries do not follow census tracts or zip codes, we created digitized maps of original zone boundaries and later expansions. We combine these maps with geocoded observations on most businesses located in California. The evidence indicates that enterprise zones do not increase employment. We also find no shift of employment toward the lower-wage workers targeted by enterprise zone incentives. We conclude that the program is ineffective in achieving its primary goals.

JEL-codes: H25 H73 J23 R12 (search for similar items in EconPapers)
Date: 2008-12
New Economics Papers: this item is included in nep-ent, nep-lab and nep-ure
Note: LS PE
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Citations: View citations in EconPapers (14)

Published as Jed Kolko & David Neumark, 2010. "Do some enterprise zones create jobs?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 5-38.
Published as 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.

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