The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Enterprise Zones

  • Leslie E. Papke
Reference work entry


Enterprise zones are geographically targeted economic development incentives used in the United States by individual states since the early 1980s and the federal government since 1993. Research on state zone programmes that accounts for the endogeneity of zone designation finds little improvement in the employment and incomes of zone residents, but some evidence that firms respond to tax incentives for capital. In contrast, the federal empowerment zone programme combines tax incentives with local initiatives and access to large federal grants. Recent research on round one of the federal programme finds mixed evidence on zone resident employment.


Enterprise Zones Investment Subsidies Labour Subsidies Tax Competition Tax Credits Tax Incentives 

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Leslie E. Papke
    • 1
  1. 1.