The effectiveness of job creation tax credits

Shiferaw Gurmu, David L. Sjoquist and Laura Wheeler

Regional Science and Urban Economics, 2021, vol. 90, issue C

Abstract: We estimate the causal effects of job creation tax credits on employment using the exogenous spatial and time variations in the value of the credits across Georgia's 159 counties over a 15-year period. We employ three empirical approaches: regression discontinuity design models making use of the sharp discontinuity in eligibility for credits of different value; difference-in-differences models using inter temporal and inter and intra-county changes in credit value; and employment differences in bordering census tracts that qualify for different valued credits. We obtain mixed results, but in general they provide little evidence for the proposition that job creation tax credits create additional employment.

Keywords: Job creation tax credits; State employment growth; State economic development (search for similar items in EconPapers)
JEL-codes: H25 H32 H71 R51 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:90:y:2021:i:c:s0166046221000818

DOI: 10.1016/j.regsciurbeco.2021.103721

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