Abstract
Enterprise zones are place-based policies whose purpose is to help people who live in deprived neighborhoods. They can affect equilibria on both the labor and housing markets. Using the French case, the paper proposes results on the impact of enterprise zone programs for residents, focusing on displacement and social composition effects that have not been much studied. The paper first shows that the unemployment rate of French EZ residents has decreased significantly as a result of the program and that it is due, in part, to the fact that some exemptions were made conditional on local hiring. In the long run, some composition effects occurred in the targeted areas and the decrease of unemployment was partly due to an increase in the share of high-skilled residents.
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