Does the Targeted Jobs Tax Credit Create Jobs at Subsidized Firms?
Bishop, John H.; Montgomery, Mark
This paper uses the results of a survey of more than 3500 private employers to determine whether use of the Targeted Jobs Tax Credit (TJTC) alters the level of a fIrm's employment and/or whom the fInn hires. We estimate that each subsidized hire generates between .13 and .3 new jobs at a participating fIrm. Use of the program also appears to induce employers to hire more young workers (age 25 and under). Our results suggest, however, that at least 70% of the tax credits granted employers are payments for workers who would have been hired even without the subsidy. Such payments represent mere transfers to employers.
CAHRS; ILR; center; human resource; job; worker; advanced; labor market; satisfaction; employee; work; manage; management; training; tax credit; subsidized firms; TJTC; induce; employer; payment; school; role; student