Full Citation

Title: Did the Work Opportunity Tax Credit Cause Subsidized Worker Substitution

Citation Type: Journal Article

Publication Year: 2012

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This article questions whether the implementation of the Work Opportunity Tax Credit (WOTC) created an incentive for employers to substitute subsidized workers for incumbent workers. To see if this substitution occurs, the author uses a differences-in-differences methodology to test whether the implementation of the WOTC caused both an increase in employment from a representative target group and a decrease in employment of a group that is a close substitute for members of the target group. The author finds no evidence that subsidized worker substitution occurred in the period after the WOTC was implemented. There is evidence that the WOTC is effective in increasing the employment rates of long-term welfare recipients.

User Submitted?: No

Authors: Ajilore, Olugbenga

Periodical (Full): Economic Development Quarterly

Issue: 3

Volume: 26

Pages: 231-237

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Poverty and Welfare

Countries: