Does the Targeted Jobs Tax Credit Create Jobs at Subsidized Firms?

This paper uses the results of a survey of more than 3,500 private employers to determine whether use of the Targeted Jobs Tax Credit (TJTC) alters the level of a firm\u27s employment and/or whom the firm 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 percent 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

Enrollment, Attendance and Engagement → Achievement: Successful Strategies for Motivating Students - Evidence of Effectiveness from Comparisons of 50 States and 45 Nations

The purpose of the educational enterprise is LEARNING. Engagement is essential to achieving this purpose. How do we increase the proportion of our young people who enroll in and attend school while simultaneously setting high standards and inducing them to become engaged and effective learners? This paper proposes an agenda of reform to achieve these two goals. Each of proposal has a research literature behind it that makes a good case that the policy simultaneously raises the achievement of existing students and encourages them to stay in school or alternatively achieves one of these goals without sacrificing the other. Strategy # 1 says “Do a better job of convincing adolescents that learning and schooling pays off big time.” Strategy # 2 proposes a variety of ways of making secondary schools both more attractive and more effective. Expand the offerings of and access to career-technical education. Stop building large high schools. Create a new set of small high quality schools of choice: KIPP Academies and Career Academies. In Strategy # 3 I propose that end-of-course exams [not minimum competency exams or standards based exams] be the primary mechanism (along with teacher grades) for signaling student achievements to colleges and employers and for holding high schools accountable.High quality end-of-course exams that reliably measure achievement over the entire A to F range would need to be developed. Exam grades would appear on the student’s transcript, be part of the final grade in the course and be factored into college admissions and placement decisions. The exam would be a spur for everyone in the class to try harder, not just those who are struggling to pass the course. This strategy brings the interests of students, parents and teachers into alignment, encourages a pro-learning culture in the classroom and makes it easier for teachers to be rigorous and demanding. Universal curriculum-based external exam systems—as they are called--work remarkably well in Europe, Canada, North Carolina and New York and there is every reason to expect them to be equally successful when implemented in other SREB states

Employer Training and Skill Shortages: A Review of the State of Knowledge With Recommendations for Future Research by the Department of Labor

This report proposes that the Department of Labor undertake a program of research designed to inform the policy debate related to skill shortages and the role of employer training in ameliorating them. The paper reviews the currently available evidence and then proposes new research on seven questions

Is it Wise to Try to Force Employers to Pay All the Costs of Training at the Workplace?

[Excerpt] This article explores the effects that these regulations have on: (a) the form of labor contracts and on training outcomes such as: (b) who pays for work place training of non-exempt employees, (c) whether training is obtained at schools or firms, (d) how much training non-exempt employees get? The evidence on who gets and who pays for training is consistent with the proposition that these regulations are having the effects that economists would predict for them. Many other explanations fit the data just as well, however, so causal connections between these regulations and training outcomes cannot be proved beyond a reasonable doubt

The Effect of National Standard and Curriculum-Based Exams on Achievement

[Excerpt] Two presidents, the National Governors Association and numerous blue ribbon panels have called for the development of state or national content standards for core subjects and examinations that assess the achievement of these standards. The Competitiveness Policy Council, for example, advocates that external assessments be given to individual students at the secondary level and that the results should be a major but not exclusive factor qualifying for college and better jobs at better wages (1993, p. 30). It is claimed that curriculum-based external exit exam systems (CBEEEs) based on world class content standards will improve teaching and learning of core subjects. What evidence is there for this claim? Outside the United States such systems are the rule, not the exception. What impacts have such systems had on school policies, teaching and student learning

The Skills Shortage and the Payoff to Vocational Education

[Excerpt] Skill demands also appear to be rising within occupations. Increasing numbers of manufacturing workers are working in production cells in which every member of the team is expected to learn every job. Production workers are being given responsibilities--quality checking, statistical process control (SPC) record keeping, resetting machines shown by SPC to be straying from target dimensions, redesigning the layout of the machines in the production cell--that used to be the sole province of supervisors, specialized technicians and industrial engineers. What implications do these changes in skill demands have for the payoff to high school vocational education? Are workers who develop the technical skills taught in trade and technical programs, in fact, more productive when they get a job in the field? Are the skills taught in these programs still valued by the labor market? Has the payoff to high school vocational training increased along with the payoff to other skills? What changes in the way vocational education is delivered are implied by the tight labor markets for highly skilled workers? This paper attempts to answer these questions by examining four different kinds of evidence on the economic payoffs to occupationally specific training in high school

Is An Oversupply of College Graduates Coming?

[Excerpt] Demand for college graduates workers was strong during the 1980s (Blackburn, Bloom and Freeman 1989; Katz and Murphy 1990; Kosters 1989; Freeman 1991). The relative wage of college graduate workers rose and college attendance rose in response. Have the demand and technology shocks that produced this result run their course? Is the supply response large enough to stop and/or reverse the 1980s escalation of the relative wages of college graduates? Read superficially, Bureau of Labor Statistics projections appear to suggest that the answers to these questions are YES. In the latest BLS report, the growing supply of college graduates was projected to outstrip growth of demand by 300,000 annually (Shelley 1996). Even larger gaps between supply and demand were projected in 1992 and 1994 (Shelley 1992, 1994). Looking at these projections, some in the press have reported that the college graduate labor market is about to go bust. New York Times reporter, Louis Uchitelle, for example, led off an article titled Surplus of College Graduates Dims Job Outlook for Others with the following

Occupational Training in High School: When Does it Pay Off?

[Excerpt] About half of all youth either do not complete high school or end their formal education with the high school diploma. Even higher proportions of minority, disadvantaged and handicapped youth do not enter postsecondary education. Should public schools offer these youth occupationally specific education and training? If so, what form should this education take? Should the goal of the occupational component of high school vocational education be occupationally specific skills, career awareness, basic skills or something else? What should be the relationship between programs providing occupationally specific training and the employers who hire their graduates

Employment in Construction and Distribution Industries: The Impact of the New Jobs Tax Credit

Excerpt] The New Jobs Tax Credit (NJTC) offers a tax credit of fifty percent of the first $4200 of wages per employee for increases in employment of more than two percent over the previous year. Economic theory predicts that such a tax credit should stimulate employment, decrease hours worked per week, and reduce product prices of the subsidized industries. A time series analysis of the construction, retailing, and wholesaling industries finds strong support for these hypotheses. Our results suggest that the NJTC was responsible for 150,000-670,000 of the more than 1-million increase in employment that occurred between mid-1977 and mid-1978 in the construction and retailing industries. Similar analysis indicates that by June 1978, NJTC had produced roughly a 1 percentage point reduction in the margin between retail and wholesale prices of commodities that saved consumers$1.9-$3.6 billion over the course of the previous year

Underinvestment in on-the Job Training?

[Excerpt] A growing number of commentators are pointing to employer sponsored training (OJT)as a critical ingredient in a nation\u27s competitiveness. American employers appear to devote less time and resources to the training of entry level blue collar, clerical and service employees than employers in Germany and Japan (Limprecht and Hayes 1982, Mincer and Higuchi 1988, Koike 1984, Noll et al 1984, Wiederhold-Fritz 1985). In the United States, only 33 percent of workers with 1 to 5 years of tenure report having received skill improvement training from their current employer (Hollenbeck and Wilkie 1985). Analyzing 1982 NLS-Youth data, Parsons (1985) reports that only 34 to 40 percent of the young workers in clerical, operative, service and laborer jobs reported that it was very true that the skills [I am] learning would be valuable in getting a better job. The payoffs to getting jobs which offer training appear to be very high, however. In Parson\u27s study, having a high learning job rather than a no learning job in 1979 increased a male youth\u27s 1982 wage rate by 13.7 percent. While the 1980 job had no such effect, the 1981 job raised wages by 7.2 percent when it was a high learning job rather than a no learning job