2023-09-28 14:46:10 +00:00
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abstract: 'Federal and state governments spend well over a billion dollars a year
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on programs that encourage employment development in disadvantaged labor
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markets through the use of subsidies and tax credits. In this paper we
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use an estimation approach that is valid under relatively weak
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assumptions to measure the impact of State Enterprise Zones (ENTZs),
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Federal Empowerment Zones (EMPZs), and Federal Enterprise Community
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(ENTC) programs on local labor markets. We find that all three programs
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have positive, statistically significant, impacts on local labor markets
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in terms of the unemployment rate, the poverty rate, the fraction with
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wage and salary income, and employment. Further, the effects of EMPZ and
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ENTC designation are considerably larger than the impact of ENTZ
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designation. We find that our estimates are robust to allowing for a
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regression to the mean effect. We also find that there are positive, but
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statistically insignificant, spillover effects to neighboring Census
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tracts of each of these programs. Thus our positive estimates of these
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program impacts do not simply represent a transfer from the nearest
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non-treated Census tract to the treated Census tract. Our results are
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noteworthy for several reasons. First, our study is the first to jointly
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look at these three programs, thus allowing policy makers to compare the
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impacts of these programs. Second, our paper, along with a concurrent
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study by Neumark and Kolko (2008), is the first to carry out the
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estimation accounting for overlap between the programs. Third, our
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estimation strategy is valid under weaker assumptions than those made in
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many previous studies; we consider three comparison groups and let the
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data determine the appropriate group. Fourth, in spite of our
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conservative estimation strategy, by looking at national effects with
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disaggregated data, we show that ENTZ designation generally has a
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positive effect on the local labor market, while most previous research
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on ENTZs, much of which used more geographically aggregated data to look
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at state-specific effects, did not find any significant impacts. Fifth,
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we note that there is little or no previous work on ENTCs. Overall, our
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results strongly support the efficacy of these labor market
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interventions. (C) 2010 Elsevier B.V. All rights reserved.'
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affiliation: 'Ham, JC (Corresponding Author), Univ Maryland, IZA \& IRP UW Madison,
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College Pk, MD 20742 USA.
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Ham, John C., Univ Maryland, IZA \& IRP UW Madison, College Pk, MD 20742 USA.
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Swenson, Charles; Imrohoroglu, Ayse, Univ So Calif, Marshall Sch Business, Los Angeles,
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CA 90089 USA.'
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author: Ham, John C. and Swenson, Charles and Imrohoroglu, Ayse and Song, Heonjae
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author-email: john.ham.at.maryland.economics@gmail.com
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author_list:
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- family: Ham
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given: John C.
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- family: Swenson
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given: Charles
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- family: Imrohoroglu
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given: Ayse
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- family: Song
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given: Heonjae
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da: '2023-09-28'
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doi: 10.1016/j.jpubeco.2010.11.027
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files: []
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issn: 0047-2727
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journal: JOURNAL OF PUBLIC ECONOMICS
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keywords: 'Enterprise zones; Empowerment zones; Enterprise communities; Program
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evaluation; Disadvantaged labor markets'
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keywords-plus: 'INSTRUMENTAL VARIABLES; TRAINING-PROGRAMS; PROPENSITY SCORE; JOB
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CREATION; IMPACT; EMPLOYMENT; CALIFORNIA; POLICIES'
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language: English
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month: AUG
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number: 7-8
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number-of-cited-references: '39'
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pages: 779-797
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papis_id: a91a44da3eda1a8c64793457e32e8de4
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ref: Ham2011governmentprograms
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times-cited: '111'
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title: 'Government programs can improve local labor markets: Evidence from State Enterprise
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Zones, Federal Empowerment Zones and Federal Enterprise Community'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000291289800025
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usage-count-last-180-days: '5'
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usage-count-since-2013: '50'
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volume: '95'
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web-of-science-categories: Economics
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year: '2011'
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