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The Impact of Urban Enterprise Zones on Establishments

 

Notice

Type:   Article
 
Titre:   The Impact of Urban Enterprise Zones on Establishments
 
Auteur(s):   Mayer, Thierry - Département d'économie (Auteur)
Mayneris, Florian - Institut de recherches économiques et sociales (Auteur)
Py, Loriane - Banque de France (Auteur)
 
In:   Journal of Economic Geography
 
Date de publication:   2015-10
 
Éditeur:   ROYAUME-UNI  :  Oxford University Press
 
Volume:   lbv035
 
Pages:   1-44  p.
 
ISSN:   14682702
 
DOI:   https://doi.org/10.1093/jeg/lbv035
 
Mots-clés:   [en] Firm location, Enterprise zones, Employment, Wages, Spatial differencing
 
JEL:   R12,  R38,  R58
 
Résumé:   [en] In this article, we study the impact of a French enterprise zone program—the ‘Zones Franches Urbaines’ (ZFUs) policy—on establishment location decisions and on labor market outcomes. Our main identification strategy, which combines spatial and time differencing, shows that conditional on locating in a municipality that hosts a ZFU, the policy has a positive and sizable impact on the probability to locate in the ZFU part rather than in the non-ZFU part of municipalities. However, the impact is highly heterogeneous across zones, industries and firms. We also show that this positive effect is entirely due to within-municipality diversion effects. Regarding labor market outcomes, the policy has a positive effect on employment, especially for low-wage workers. As for wages, the effect is null for low-wage workers, and negative for high-wage ones.
 
 

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