Incidence, Optimal Use and Rationale of Place-Based Job Creation Programs

First, this paper empirically evaluates the incidence of the Japanese place-based job creation program, which has been rarely studied in Japan. The program increases employment, especially in the agricultural, retail trade and service sectors that most treated cities promote. Second, this paper explores the cities that the program most affects. Those with large aging populations and those with small working age population decrease the effects of the program. Third, this paper assesses the rationale of this program and does not observe a strong reduction in sales, workers or establishments in the neighboring cities of the treated city