Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
Government Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitieses1John c. HamUniversity of Maryland, IZA and IRP (UW-Madison) Charles SwensonMarshall School of Business, University of Southern California Ayạe imrohorogluMarshall School of Business, University of Southern CaliforniaHeonjae Song Korea Institute of Public FinanceNovember 20008Revised October 20101 Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities Ham is corresponding author (john.ham.econ@gmail.com).This paper was previously circulated under the title "Do Enterprise Zones Work" (mimeo 2006. 20Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
07). Ham's work was supported by NSF grant SBS0627934. We are grateful for helpful comments from Fernando Alvarez. Tony Braun. Duke Bristow. Peter HinGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitieszo Quadrini, Geert Ridder, Jacqueline Smith. Jeff Smith, Karl Scholz, Martin Weidner and participants at Maryland. Kentucky, UNLV, use and the Institute for Research on Poverty Summer Workshop. We received especially helpful comments from two anonymous referees and a Co-Editor. Any opinions, finding Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiess, and conclusions or recommendations in this material are those of the authors and do not necessarily reflect the views of the National Science FoundGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
ation, the Federal Reserve Bank of San Francisco or the Federal Reserve System. We are responsible for any errors.ABSTRACTFederal and state governmentGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitieses and tax credits. In this paper we use an estimation approach that is valid under relatively weak assumptions to measure the impact of state Enterprise Zones (ENTZs), Federal Empowerment Zones (EMPZs), and Federal Enterprise Community (ENTC) programs on local labor markets. We find that all three Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesprograms have positive, statistically significant, impacts on local labor markets in terms of the unemployment rate, the poverty rate, the fraction wiGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
th wage and salary income, and employment. Further, the effects of EMPZ and ENTC designation are considerably larger than the impact of ENTZ designatiGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesignificant, spillover effects to neighboring Census tracts of each of these programs. Thus our positive estimates of these program impacts do not simply represent a transfer from the nearest non-treated Census tract to the treated Census tract.Our results are noteworthy for several reasons. First, o Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesur study is the first to jointly look at these three programs, thus allowing policy makers to compare the impacts of these programs. Second, our paperGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
, along with a concurrent study by Neumark and Kolko (2008), is the first to carry out the estimation accounting for overlap between the programs. ThiGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiese data determine the appropriate group. Fourth, in spite of our conservative estimation strategy, by looking at national effects with disaggregated data, we show that ENTZ designation generally has a positive effect on the local labor market, while most previous research on ENTZs, much of which used Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities more geographically aggregated data to look at state-specific effects, did not find any significant impacts. Fifth, we note that there is little or nGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
o previous work on ENTCs. Overall, our results strongly support the efficacy of these labor market interventions.1. IntroductionGovernments often inteGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities States have been creating these zones in distressed areas since the 1980s, although the programs differ widely across states. Enterprise Zone programs often involve substantial expenditures — for example California reports an estimate of $290 million in tax credits in 2008 for such activities in ec Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesonomically depressed areas.7 Further, the Federal government introduced its Empowerment Zone (EMPZ) and Enterprise Community (ENTC) programs in the miGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
d 1990s; again these were aimed at improving conditions in disadvantaged neighborhoods? The resources involved in these federal programs are quite subGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesgy to evaluate the labor market impact of each of these programs.There is substantial interest in the efficacy of these programs, both because of the resources involved, and because they offer an alternative to programs aimed at low -income labor markets such as Job Corps, which are estimated to hav Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiese had modest success at best (LaLonde, 1995). Of course, the crucial issue in the evaluation of ENTZ, EMPZ and ENTC programs is the need to assess howGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
the affected labor markets would have performed in the absence of these programs; i.e. one must construct the appropriate counter-factual. However, tGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesate comparison areas? Second, one faces a tradeoff between the level of geographic aggregation and the frequency of data collection. Labor market data is freely available annually for counties or Zip codes, but an ENTZ often only covers a small portion of a county or Zip code, which 2 * * 52 See the Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities California Legislative Analyst's Report at hnp://www.lao.ca.qov/handouts/Econ/2008/Tax Expend 04 07_08.pdf .2 Our analysis ignores a third Federal prGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
ogram. Renewal Communities, that were established after 2000 and thus are outside of the scope of our study* Projected Tax Expenditures Budget, 2004-2Government Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesaper, there is still substantial debate on the efficacy of nonexperimental evaluation of such programs.3makes defining impacts problematic. This suggests the need to work at a finer level of geographical aggregation, which in turn generally requires using Census data.6Much of the literature suggests Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities that ENTZ designation does not have a positive impact on the affected labor market. While Papke (1994) finds a positive impact of ENTZs in Indiana whGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
en she looks at labor markets at the level of an unemployment insurance office, she could not find a positive impact on labor markets using Census bloGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiescode data on statespecific ENTZ programs and find little or no positive labor market effects.7 Interestingly, in a paper written concurrently with an earlier draft of this paper, Neumark and Kolko (2008) use firm level data on employment (available in interval form) to study the impact of ENTZs in C Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesalifornia on employment, but find no significant effect.6Two papers on EMPZs introduced in the mid-1990s, by Oakley and Tsao (2006) and Busso and KlinGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
e (2007) draw opposite conclusions from their research, in spite of the fact that both studies use propensity score matching and Census tract data. SpGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise CommunitiesMPZs on local labor markets. However we argue below that there may be an identification issue that significantly reduces the appropriateness of using propensity score matching here, since it requires relatively precise estimates of a propensity score specification rich enough to achieve the Conditio Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesnal Independence Assumption, but their estimation is based only on the eight urban EMPZs introduced in 1994.® As noted below, Neumark and Kolko (2008)Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
provide a method for measuring employment (one of the five labor market measures we analyze) at the ENTZ level on an annual basis, albeit with potentGovernment Programs Can Improve Local Labor Markets: Evidence from state Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitie Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiessed cities as long as they were not severely depressed. Some of these papers use data on enterprises and find disaggregated effects - see the discussion below.s As noted below, we also find that ENTZ designation in California has no significant effect on employment, but we do find that it improves l Government Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communitiesocal labor markets by having a significant effect of the unemployment rate, the poverty rate and the fraction of individuals with wage and salary incoGovernment Programs Can Improve Local Labor Markets Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Communities
me.4In this paper we extend the literature on these important programs in several ways. First, we evaluate the impacts of all three programs: ENTZ desGọi ngay
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