Can We Build More Effective Place-Based Policies? Theory and Evidence

Amid renewed policy interest, the academic literature on place-based programs has expanded dramatically in recent years. In this essay, we review recent theoretical and empirical work in an effort to assess when and why place-based job creation policies succeed or fail. Drawing on theory, we describe key dimensions on which place-based programs vary and discuss evidence on the consequences of different design choices. We conclude with several lessons for the next generation of place-based programs.