New Article: Richard J. Smith, Empowerment for Whom? The Impact of Community Renewal Tax Incentives on Businesses in Minority and Immigrant Neighborhoods, SSRN, May 23, 2011. Abstract below:
In the 1990s, the Clinton Administration took a place based approach to address poverty and unemployment in inner cities. By 2001, HUD designated over 120 areas as Renewal Communities, Empowerment Zones or Enterprise Communities (RC/EZ/EC) to receive employment credits, regulatory relief or grants. Did these programs increase jobs and businesses? Because immigration rates vary in these areas, cases are drawn from California, (high), and Tennessee, (low). Data showed a 25% job increase for businesses with five or fewer employees. Minority businesses in Tennessee increased, but those in California experienced a 15% reduction in job growth. Policy recommendations end the article.
Poverty Law 