What is the Impact of Opportunity Zones on Employment?
23 Pages Posted: 26 Aug 2020 Last revised: 29 Apr 2021
Date Written: April 28, 2021
We use a large database of online job vacancies from January 2015 to December 2020 to study the effect of Opportunity Zones (OZs) on vacancies. The OZs program grants tax-breaks for investment in distressed communities and was implemented throughout 2018. Governors of each state nominated OZs based on a variety of factors. We use propensity score matching to account for those factors and a difference-in-differences model over the matched sample to estimate the effect of the program. We find weak evidence of an increase in job vacancies after two years, although stronger effects appear in some low-income communities.
Keywords: Opportunity Zones, Employment, Wages, Job Postings
JEL Classification: J18, J21, J31
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