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W. E. Upjohn Institute for Employment Research, Kalamazoo, Mich. >
Upjohn Institute Working Papers, W. E. Upjohn Institute for Employment Research >
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http://hdl.handle.net/10419/64389
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| Title: | | Temporary help service firms' use of employer tax credits: Implications for disadvantaged workers' labor market outcomes  |
| Authors: | | Hamersma, Sarah Heinrich, Carolyn |
| Issue Date: | | 2007 |
| Series/Report no.: | | Upjohn Institute Working Paper 07-135 |
| Abstract: | | Temporary help services (THS) firms are increasing their hiring of disadvantaged individuals and claiming more 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 using administrative and survey data. Results indicate that WOTC/WtW-certified THS workers have higher earnings than WOTC-eligible but uncertified THS workers. However, these workers have shorter job tenure and lower earnings than WOTC/WtW-certified workers in non-THS industries. Panel estimates suggest that these effects do not persist over time. |
| JEL: | | H2 I3 J3 J4 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Upjohn Institute Working Papers, W. E. Upjohn Institute for Employment Research
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