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An Evaluation of California's Enterprise Zone Programs

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  • David E. Dowall

    (University of California, Berkeley)

Abstract

In 1984, California joined the growing list of states adopting enterprise zone legislation in an attempt to stimulate targeted business development and employment growth within economically distressed areas. This article reports on a first-ever assessment of whether California's two enterprise zone programs have stimulated employment. The existing Enterprise Zone and Economic Incentive Area programs (referred to in the article collectively as enterprise zone programs) have produced very modest economic benefits, and there is little evidence to suggest that they have strengthened the economic advantages of California's zones. Shift-share analysis indicates that employment growth was lower than predicted in 11 of 13 areas. A survey of businesses indicates that in only 23 cases did zone program incentives influence plant location or expansion decisions. In and of themselves, zone incentives and resources have apparently done little to boost job creation and business investment.

Suggested Citation

  • David E. Dowall, 1996. "An Evaluation of California's Enterprise Zone Programs," Economic Development Quarterly, , vol. 10(4), pages 352-368, November.
    • Handle: RePEc:sae:ecdequ:v:10:y:1996:i:4:p:352-368
    DOI: 10.1177/089124249601000405
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    Cited by:

    1. Rachel Meltzer & Jenny Schuetz, 2010. "Bodegas or Bagel Shops? Neighborhood Differences in Retail & Household Services," Working Paper 33, USC Lusk Center for Real Estate.
    2. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    3. Kala Seetharam Sridhar, 2005. "Benefits and Costs of Regional Development: Evidence from Ohio’s Enterprise Zone Programme," Palgrave Macmillan Books, in: Incentives for Regional Development, chapter 5, pages 87-114, Palgrave Macmillan.
    4. Pender, John & Reeder, Richard, 2011. "Impacts of Regional Approaches to Rural Development: Initial Evidence on the Delta Regional Authority," Economic Research Report 262240, United States Department of Agriculture, Economic Research Service.
    5. Hooton, Christopher Alex, 2019. "The application of micro-geographic economic analysis in urban policy evaluation," Evaluation and Program Planning, Elsevier, vol. 72(C), pages 125-135.
    6. Robert T Greenbaum & John B Engberg, 1998. "The Impact Of State Urban Enterprise Zones On Business Outcomes," Working Papers 98-20, Center for Economic Studies, U.S. Census Bureau.
    7. O'Keefe, Suzanne, 2004. "Job creation in California's enterprise zones: a comparison using a propensity score matching model," Journal of Urban Economics, Elsevier, vol. 55(1), pages 131-150, January.
    8. Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, vol. 68(1), pages 1-19, July.
    9. Timothy Bates, 2006. "Alleviating the lagging performance of economically depressed communities and regions," Proceedings: Community Affairs Dept. Conferences, Federal Reserve Bank of Kansas City, issue Jul, pages 1-16.

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