Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64389
Authors: 
Hamersma, Sarah
Heinrich, Carolyn
Year of Publication: 
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

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