The Impact of Enterprise Zones on Job Creation in Mississippi

Abstract

The designation of enterprise zones has been touted as an effective tool in efforts to reduce poverty, but scant evidence exists to support this. In 1983, Mississippi passed legislation authorizing the creation of enterprise zones in the most distressed counties of the state as a way of directing new jobs toward those areas. This study examines the effect of enterprise zone designation on the creation of jobs in new or expanding manufacturing establishments. Using a model estimated from panel data, the study found that qual(fying as an enterprise zone had a positive effect on a county's rate of job creation. (JEL 0180, H710)