The Effect of Location-Based Tax Incentives on Establishment Location and Employment across Industry Sectors

Hanson, Andrew; Rohlin, Shawn M.

doi:10.1177/1091142110389602

Cited by 55 publications

(55 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…5 In terms of establishment re-location, Hanson and Rohlin (2011a) find that the EZ is responsible for attracting new establishments to the area, and the effect is quite large for establishments in the retail (about 40 new establishments) and service (about 5 new establishments) sectors. In addition, Hanson and Rohlin (2011b) find that the EZ is responsible for industry level churning of establishments in the EZ area-with retail and service establishments gaining share at the expense of other sectors.…”

Section: Why Use the Federal Empowerment Zone To Examine Spillovers?mentioning

confidence: 99%

“…Previous work (Hanson and Rohlin, 2011b) finds the Empowerment Zone tax incentives are most effective at attracting new establishments in the retail and service industries. Given the success of the program at attracting new retail and service establishments, we test for spillovers in adjacent areas in these industries separately.…”

Section: Spillovers In the Retail And Service Industrymentioning

confidence: 99%

See 1 more Smart Citation

Do spatially targeted redevelopment programs spillover?

Hanson

Rohlin

2013

Regional Science and Urban Economics

Self Cite

120

View full text Add to dashboard Cite

This paper estimates spillover effects from a spatially-targeted redevelopment program, the Federal Empowerment Zone (EZ), on neighboring and economically similar areas. EZs are a set of generous tax incentives and grants aimed at small, economically depressed areas of large U.S. cities. We find areas that border or are economically similar to EZ locations experience a decline in the number of establishments and employment compared to areas that border or are similar to rejected EZ applicants. We also demonstrate that using spillover prone areas to estimate program effects causes upward bias when the spillover is negative. We find that for many of our estimates, spillovers more than offset positive program effects, although there are instances when the net effect is small and positive.

show abstract

Section: Why Use the Federal Empowerment Zone To Examine Spillovers?mentioning

confidence: 99%

Section: Spillovers In the Retail And Service Industrymentioning

confidence: 99%

Do spatially targeted redevelopment programs spillover?

Hanson

Rohlin

2013

Regional Science and Urban Economics

Self Cite

120

View full text Add to dashboard Cite

show abstract

“…The optimal EZ schema is therefore difficult to determine, as it depends on the needs of diverse firms: for instance, a labor-intensive firm would be more responsive to a labor tax reduction than would a capital-intensive one. Recent papers emphasize strong discrepancies in the effectiveness of Enterprise Zones: these discrepancies may depend on the variety of tax cuts and services provided (Bondonio and Greenbaum 2007), the manner in which the zone is managed (Kolko and Neumark 2010), or even on the age of the firm (Bondonio and Greenbaum 2007) or the sector of activity in which the firm is involved (Hanson and Rohlin 2011). Similarly, the EZ's impact on local employment, which is usually regarded as a key indicator, also varies with the tax cuts proposed (Lynch and Zax 2008).…”

Section: Introductionmentioning

confidence: 99%

A long-term evaluation of the first generation of French urban enterprise zones

Givord

Quantin

Trevien

2018

Journal of Urban Economics

View full text Add to dashboard Cite

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...

show abstract

“…Tax breaks -although Polish counties do have some instruments to reduce the total cost of tax burdens they are not as effective as in the USA. For example Detroit competes by giving tax breaks, packaging land together to meet businesses space needs, and figuring out the land needs to promise infrastructure of businesses to be able to do what they want to do (Hanson, Rohlin, 2011, 2013. Below are presented some examples of the situation in US counties (including urban areas), which bear strong similarity to the situation in Poland:…”

Section: Building Ic In Counties: the Us Perspectivementioning

confidence: 99%