Based on the data of 276 cities in China from 2004 to 2019,this paper explores the impact of pilot FTZs on em-ployment by using the Differences in Differences with Multiple Time Periods method.The findings show that pilot FTZs signifi-cantly increase the employment of the cities in which they are located,by about 10.6%on average,compared with cities with-out implementing this policy.In terms of results by region,the effect of inland pilot FTZs on the employment is more pronounced compared to coastal ones.In terms of the results by time,the first pilot FTZs play a more prominent role in promoting employ-ment,and their impact on employment gradually diminishes as time passes.The results of the mechanism analysis show that pi-lot FTZs improve the local employment through two dimensions:increasing the inflow of foreign direct investment and upgrading the industrial structure.
pilot free trade zoneemploymentinflow of foreign investmentupgrading of the industrial structure