JUE Insight: What is the impact of opportunity zones on job postings?

Abstract

We study the effect of Opportunity Zones (OZs) on job postings using data comprising the near-universe of U.S. online job postings. The OZs program grants tax breaks for investment in designated distressed communities, nominated by each state’s governor based on multiple factors. We use propensity score matching to account for those factors and a difference-in-differences model over the matched sample to estimate the effect of the program. We find limited evidence of any effect of OZs on job postings on average, although we do find small positive effects in urban areas, in areas with above median Black population, and in some states.