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The Labor Market Effects of Place-Based Policies: Evidence from England’s Neighbourhood Renewal Fund

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Abstract

Neighborhood renewal programs are a type of place-based policy that aim to revive underperforming localities. The literature on place-based policies has found mixed results regarding their effects on local labor market outcomes, but there are relatively few studies of policies that aim to improve local labor supply. In this paper, we examine the labor market effects of the Neighbourhood Renewal Fund, which targeted eighty-eight of the most deprived areas in England during the early 2000s as part of the Labour Government's National Strategy for Neighbourhood Renewal. The fund disbursed almost £3 billion for spending on community safety, education, health care and worklessness, with supply-side interventions making up the bulk of the program's spending on worklessness. Using a difference-in-differences approach, we find statistically significant impacts on local employment and out-of-work benefit claimants. Our results suggest that policy interventions to improve local labor supply can be a successful strategy for neighborhood renewal.

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  • Robert Calvert Jump & Adam Scavette, 2022. "The Labor Market Effects of Place-Based Policies: Evidence from England’s Neighbourhood Renewal Fund," Working Paper 22-02, Federal Reserve Bank of Richmond.
    • Handle: RePEc:fip:fedrwp:94248
    DOI: 10.21144/wp22-02
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    More about this item

    Keywords

    Place-Based Policies; Urban Economics; Labor Supply; Employment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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