Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience.
Authors
Publication date
- BRIANT Anthony
- LAFOURCADE Miren
- SCHMUTZ Benoit
2015
Publication type
Journal Article
Summary
This paper shows that urban geography matters to the effectiveness of place-based policies, using the French enterprise zone program as a case study. Whereas this program created more jobs in spatially integrated neighborhoods, its impact on local wages was only visible in the more isolated ones. In addition, a focus on the average impact of the program would lead to the conclusion that it mostly succeeded in displacing preexisting firms, but a lower level of spatial isolation was a clear determinant of the decision to create new firms from scratch.
Publisher
American Economic Association
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