Temporary Help Service Firms' Use of Employer Tax Credits: Implications for Disadvantaged Workers' Labor Market Outcomes.

Temporary help services (THS) firms are increasing their hiring of disadvantaged individuals while also increasing their use of employment subsidies for doing so. Do these subsidies-the Work Opportunity Tax Credit (WOTC) and Welfare-to-Work Tax Credit (WtW)-create incentives that improve employment...

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Publicado en:Southern Economic Journal Vol. 74; no. 4; pp. 1123 - 1149
Autores principales: Hamersma, Sarah, Heinricht, Carolyn
Formato: Artículo
Publicado: Wiley-Blackwell Apr2008
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Apr2008
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        10.1002/j.2325-8012.2008.tb00884.x
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        atl: Temporary Help Service Firms' Use of Employer Tax Credits: Implications for Disadvantaged Workers' Labor Market Outcomes.
      aug:
        au:
          Hamersma, Sarah
          Heinricht, Carolyn
        affil:
          Department of Economics, University of Florida, P.O. Box 117140, Gainesville, FL 32611-7140, USA
          LaFollette School of Public Affairs and Institute for Research on Poverty, University of Wisconsin-Madison, 1225 Observatory Drive, Madison, WI 53706, USA
      su:
        Taxation
        Public spending
        Government spending policy
        Subsidies
        Tax expenditures
        Tax incentives
        Transfer payments
        Tax credits
        Tax deductions
      sug:
        subj:
          Taxation
          Public spending
          Government spending policy
          Subsidies
          Public Finance Activities
          Tax expenditures
          Tax incentives
          Transfer payments
          Tax credits
          Tax deductions
      ab: Temporary help services (THS) firms are increasing their hiring of disadvantaged individuals while also increasing their use of employment subsidies for doing so. Do these subsidies-the Work Opportunity Tax Credit (WOTC) and Welfare-to-Work Tax Credit (WtW)-create incentives that improve employment outcomes for THS workers? We examine the distinct effects of THS employment and WOTC/WtW subsidies on earnings and job duration using new survey and administrative data. We find that, even controlling for a broad range of worker and firm characteristics, some important differences persist between THS workers, WOTCIWtW- certified workers, and those who are both THS and WOTC/WtW certified. THS workers who are WOTC certified have similar job duration to eligible unsubsidized workers but much higher quarterly earnings. Among WOTC-certified workers, those in THS firms have similar quarterly earnings to those in other industries but much shorter average job duration. Panel estimates suggest that these effects do not persist over time.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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