Cashing in on culture: local employment effects from art and cultural district designation

Abstract

U.S. state-designated cultural districts are modern place-based policies that leverage local arts and culture to foster economic growth. While their use is increasing, with more than 375 extant in eighteen states, large-scale evaluations of their efficacy are scarce or non-existent. This study, which relies on geocoded establishment data, finds a modest but persistent increase in employment for some in-district establishments relative to same-industry establishments located beyond district boundaries. The most effective district-implemented incentives for expanding employment appear to be direct grants to establishments, while sales tax credits also show potential benefits.