UCI News

Study finds state program ineffective at creating jobs

A new study co-authored by UC Irvine economics professor David Neumark (pictured), finds that California's Enterprise Zone Program has no…

January 5, 2009

A new study co-authored by UC Irvine economics professor David Neumark (pictured), finds that California’s Enterprise Zone Program has no measurable effect on new job creation for businesses located within zone boundaries. The state created the program in 1984 with the goal of stimulating business investment in depressed areas and creating jobs. Critics of the program say it costs the state nearly $330 million in lost tax revenue each year, while proponents tout its success at decreasing poverty and unemployment rates. “If this fairly expensive program doesn’t appear to be achieving its main objective, it’s important that its continuation be reevaluated,” Neumark said. Findings from the study are available as a working paper on the National Bureau of Economics Research’s website.