Employment Tax Credits: Evidence From the States

Publication Date


Grant Type

Policy research grant


Employment tax credits (ETC’s) have received much attention as an innovative solution targeted directly at the unemployment problem. Although 24 states have enacted ETC’s, there has been little experience with this policy tool at the national level. This study explores these state-level experiences with ETC’s, examining the policy design, impact of ETC’s on employment in the adopting state, budgetary effects, and whether increases in employment due to ETC’s are temporary or permanent. The study uses panel datasets from the 48 contiguous U.S. states that will contain detailed data describing the design and economic magnitude of ETC’s, as well as data on employment and control variables.

Grant Product

Job Creation Tax Credits: Still Worth Consideration?,
with Daniel J.Wilson Employment Research Newsletter 21(3)(2014): 4-6

Job Creation Tax Credits and Job Growth: Evidence from U.S. States
Federal Reserve Bank of San Francisco Working Paper 2010-25