Excerpt] The New Jobs Tax Credit (NJTC) offers a tax credit of fifty percent of the first 4200ofwagesperemployeeforincreasesinemploymentofmorethantwopercentoverthepreviousyear.Economictheorypredictsthatsuchataxcreditshouldstimulateemployment,decreasehoursworkedperweek,andreduceproductpricesofthesubsidizedindustries.Atimeseriesanalysisoftheconstruction,retailing,andwholesalingindustriesfindsstrongsupportforthesehypotheses.OurresultssuggestthattheNJTCwasresponsiblefor150,000−670,000ofthemorethan1−millionincreaseinemploymentthatoccurredbetweenmid−1977andmid−1978intheconstructionandretailingindustries.SimilaranalysisindicatesthatbyJune1978,NJTChadproducedroughlya1percentagepointreductioninthemarginbetweenretailandwholesalepricesofcommoditiesthatsavedconsumers1.9-$3.6 billion over the course of the previous year