【摘要】In this paper, we examine how government policy affects the sorting of industries acrossjurisdictions using the New Markets Tax Credit (NMTC) program. When estimating the impact ofthe tax credit on business activity, there are likely to be unobservable local characteristics that arecorrelated with business location decisions that would cause OLS estimates to be biased. To control forthis endogenous selection, we use a plausibly exogenous eligibility cutoff and compare census tractsthat are just eligible for the NMTC program to those that are just ineligible. Using data from the Dunand Bradstreet MarketPlace Files, we find that eligibility for the NMTC program caused industriesto sort across eligible and noneligible tracts. In particular, we find that there is an increase in retailemployment, both among new businesses and existing businesses, and an increase in manufacturingemployment at existing businesses in tracts that were eligible for the program. However, we findnegative effects on employment at new firms in the wholesale and transportation industries, anddecreases in the number of new firms in FIRE and services. Policy makers should be cognizant of theseresults, as the implications of the sorting across industries on local areas must be considered to designeffective policy.

【文献来源】Harger K;Ross A.Journal of Regional Science.2016（5）