Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper provides new empirical assessment on the efficiency of locally-targeted 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-difference 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. Terms of use: Documents inKeywords: Enterprise Zones, Local Employment, Propensity Score Matching, Evaluation. JEL: C23, H71, R5 * We thank participants of INSEE and CREST seminars as well as French Applied Microeconomics Conference (Souse, 2011, June) and Conference on Public Policies, Labour and Regional economics (Metz, 2011, June). We thank more specifically Didier Blanchet, Anthony Briant, Xavier D'Haulfoeuille and Laurent Gobillon for useful comments and discussions. Any opinions expressed in this paper are those of the author and not of any institution.† INSEE-CREST, pauline.givord@insee.fr ‡ DARES, simon.quantin@travail.gouv.fr § INSEE-SciencesPo.-CREST, corentin.trevien@insee.fr 1 Titre français: Des incitations fiscales attractives : une évaluation de long terme de la première génération des Zones Franches Urbaines Abstract Cette étude propose de nouvelles estimations empiriques de l'efficacité des incitations fiscales ciblées pour revitaliser des territoires désavantagés. Nous nous concentrons sur la première génération des ZFU, mise en place en 1997 en France métropolitaine. Nous utilisons un panel de données géolocalisées au niveau entreprise sur une période de 12 ans. Le mode de désignation des zones suggère deux straté-gies empiriques : une méthode de différences de différences avec une classification sur le score de propension et des régressions sur discontinuités. Les deux méthodes donnent des résultats proc...

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 7808 December 2013 ABSTRACT Replacing Churches and Mason Lodges? Tax Exemptions and Rural Development *This paper uses regression discontinuity design to provide quasi-experimental estimates of the impact of a tax credit program targeted at rural areas in France, including corporate and payroll tax exemptions. We find no impact of the program on total employment or the number of businesses, and no impact of the different program components on targeted subsets of firms. Comparison with a contemporaneous urban scheme suggests ways the incentives of the rural program could be targeted more effectively. Governments across the world issue tax credits and subsidies to disadvantaged labor markets in an effort to reduce spatial inequalities. Examples of these schemes include socalled"EZ programs"like the state-level Enterprise Zone or the federal Empowerment Zone programs in the US. However, evidence on the effectiveness of EZs is mixed; moreover, these programs remain ...

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