Professor Li Zhou's paper was recently presented at the NBER Public Economics conference "Behavioral Responses to Taxation: Research Using Administrative Tax Data." She and her coauthor examine the impact of Empowerment Zone and Renewal Community employment tax credits. These tax credits are designed to promote economic development in disadvantaged areas by providing firms with a tax benefit if their business locates and employs residents within the designated zone. They find strong evidence that the tax credit improves employment outcomes for residents of the zone, and also for non-residents that are employed by firms that utilize the tax incentive. For more on this research, see the full study: "The Impact of Place-Based Employment Tax Credits on Local Labor: Evidence from Tax Data."
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