THE IMPACT OF STATE URBAN ENTERPRISE ZONES ON BUSINESS OUTCOMES*
December 1998
Working Paper Number:
CES-98-20
Abstract
Since the early 1980s, a vast majority of states have implemented enterprise zones. This paper examines the impact of zone programs in the urban areas of six states on business outcomes, the main target of zone incentives. The primary source of outcome data is the U.S. Bureau of Census' Longitudinal Research Database (LRD), which tracks manufacturing establishments over time. Matched sample and geographic comparison groups are created to measure of the impact of zone policy on employment, establishment, shipment, payroll, and capital spending outcomes. Consistent with previous research findings, the difference in difference estimates indicate that zones appears to have little impact on average. However, by exploiting the establishment-level data, the paper finds that zones have a positive impact on the outcomes of new establishments and a negative impact on the outcomes of previously existing establishments.
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:
econometric,
enterprise,
sector,
business owners,
state,
establishment,
metropolitan,
area,
impact,
geographically,
gdp,
city,
indian,
district,
neighborhood,
suburb
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Metropolitan Statistical Area,
Annual Survey of Manufactures,
Standard Statistical Establishment List,
Standard Industrial Classification,
Longitudinal Research Database,
Center for Economic Studies,
County Business Patterns,
Housing and Urban Development,
Consolidated Metropolitan Statistical Areas,
Department of Housing and Urban Development,
Geographic Information Systems,
Council of Economic Advisers
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