Social and Behavioral Sciences Commons^™

Making Sense Of Incentives: Taming Business Incentives To Promote Prosperity, Timothy J. Bartik

Timothy J. Bartik

In evaluating incentives, everything depends on the details: how much in incentives it takes to truly cause a firm to locate or expand, the multiplier effects, the effects of jobs on employment rates, how jobs affect tax revenue versus public spending needs. Do benefits of incentives exceed costs? This depends on the details. This book is about those details. What magnitudes of incentive effects are plausible? How do benefits and costs vary with incentive designs? What advice can be given to evaluators? What is an ideal incentive policy? Answering these questions about incentives depends on a model of incentive effects, …

Better Incentives Data Can Inform Both Research And Policy, Timothy J. Bartik

Timothy J. Bartik

No abstract provided.

Labor-Demand-Side Economic Development Incentives And Urban Opportunity, Timothy J. Bartik

Timothy J. Bartik

No abstract provided.

Benefits Vs. Costs Of Business Incentives, Timothy J. Bartik

Timothy J. Bartik

No abstract provided.

How Effects Of Local Labor Demand Shocks Vary With The Initial Local Unemployment Rate, Timothy J. Bartik

Timothy J. Bartik

The Effects Of Metropolitan Job Growth On The Size Distribution Of Family Income, Timothy J. Bartik

Timothy J. Bartik

This paper examines how a metropolitan area's job growth affects its income distribution. The research uses annual Current Population Survey data on the income distribution in different metropolitan areas from 1979 through 1988. Faster metropolitan job growth increases real family income in the lowest income quintile by a significantly greater percentage than for the average family. Metropolitan job growth also increases the value of property owned by upper income quintiles, but property value effects are not large enough to offset the progressive effects of growth on labor income. Simulations indicate that economic development programs to increase metropolitan job growth will …

The Future Of State And Local Economic Development Policy: What Research Is Needed, Timothy Bartik

Timothy J. Bartik

No abstract provided.

An Analysis Of The Employment Effects Of The Washington High Technology Business And Occupation (B&O) Tax Credit: Technical Report, Timothy J. Bartik, Kevin Hollenbeck

Timothy J. Bartik

This paper estimates the effects of an R&D tax credit in the state of Washington on job creation. The research uses micro-data on the job creation and tax credits received by individual firms in the state of Washington from 2004 to 2009. We correct for the endogeneity of R&D tax credits received by individual firms by using instrumental variables based in part on national industry factor shares for R&D. We estimate that this tax credit created jobs, but at a high cost. The cost per job-year created is estimated to be between $40,000 and $50,000. The credit was so high …

Analysis Of Washington High Tech Tax Credit, Kevin Hollenbeck, Timothy Bartik

Timothy J. Bartik

The State of Washington has a credit provision in its Business & Operations tax intended to incentivize research and development expenditures in high tech industries. The indirect goal of the incentive is to generate employment in the state. Upjohn Institute staff members analyzed administrative data from the state to estimate the employment and earnings generating effect of the R & D credit. The administrative data included tax return information merged with quarterly earnings and employment records. Potential endogeneity of the credits and employment were controlled through instrumental variables.

How Do The Effects Of Local Growth On Employment Rates Vary With Initial Labor Market Conditions?, Timothy J. Bartik

Timothy J. Bartik

This paper examines how the effects of increased employment growth on a metropolitan area’s employment to population ratio varies with the initial tightness of the metropolitan area’s labor market. This examination is relevant to evaluating the benefits of local economic development policies in different metropolitan areas. Much of the benefits of such policies are in higher employment rates. The empirical estimates suggest that the effectiveness of employment growth in increasing the employment to population ratio is lower in metropolitan areas with “tight” labor markets. In addition, some estimates suggest that growth has the greatest long-run effects on the employment to …

How Effects Of Local Labor Demand Shocks Vary With Local Labor Market Conditions, Timothy J. Bartik

Timothy J. Bartik

This paper estimates how effects of shocks to local labor demand on local labor market outcomes vary with initial local economic conditions. The data are on U.S. metro areas from 1979 to 2011. The paper finds that demand shocks to local job growth have greater effects in reducing local unemployment rates if the local economy is initially depressed than if the local economy is booming. Demand shocks have greater effects on local wage rates if the local unemployment rate is initially low, but lesser effects if local job growth is initially high. These different effects of local demand shocks imply …

Employment Effects Of The Washington High Technology Business And Occupation Tax Credit, Timothy J. Bartik, Kevin Hollenbeck

Timothy J. Bartik

No abstract provided.

Economic Development And Black Economic Success, Timothy J. Bartik

Timothy J. Bartik

No abstract provided.

Solving The Many Problems With Inner City Jobs, Timothy J. Bartik

Timothy J. Bartik

Inner-city business development is often proposed as a solution to inner-city poverty. However, research evidence suggests that creating new jobs in the inner city is unlikely by itself to significantly increase the employment or earnings of the inner city poor. Public subsidies for inner city business development may be justified by greater environmental, congestion, and fiscal benefits of inner city vs. suburban business location decisions. The research evidence suggests that some boost in inner city business development may be provided by a combination of economic development incentives with enhanced public services. A different set of policies must be used to …

The Effects Of Local Labor Demand On Individual Labor Market Outcomes For Different Demographic Groups And The Poor, Timothy J. Bartik

Timothy J. Bartik

The contribution of this paper is to use panel data on individuals (specifically, data from the Panel Survey on Income Dynamics) to examine how local demand conditions affect the economic well-being of disadvantaged groups and the poor. Previous research on local labor demand conditions uses data from a single cross-section of local economies, or a time-series of cross-sections of regions. With such data, estimated effects of local labor demand conditions on average labor market outcomes might be attributable to changes in local population composition, as we would expect local demand conditions to change in- and out-migration patterns. Because panel data …

The Distributional Effects Of Local Labor Demand And Industrial Mix: Estimates Using Individual Panel Data, Timothy Bartik

Timothy J. Bartik

No abstract provided.

How Do The Effects Of Local Growth On Employment Rates Vary With Initial Labor Market Conditions?, Timothy Bartik

Timothy J. Bartik

This paper examines how the effects of increased employment growth on a metropolitan area's employment to population ratio varies with the initial tightness of the metropolitan area's labor market. This examination is relevant to evaluating the benefits of local economic development policies in different metropolitan areas. Much of the benefits of such policies are in higher employment rates. The empirical estimates suggest that the effectiveness of employment growth in increasing the employment to population ratio is lower in metropolitan areas with "tight" labor markets. In addition, some estimates suggest that growth has the greatest long-run effects on the employment to …

The Market Failure Approach To Regional Economic Development Policy, Timothy Bartik

Timothy J. Bartik

No abstract provided.

The Effects Of Metropolitan Job Growth On The Size Distribution Of Family Income, Timothy Bartik

Timothy J. Bartik

No abstract provided.