University of Wisconsin - Madison Institute for Research on Poverty
نویسندگان
چکیده
Due to persistent high unemployment, inflationary pressures, the costs associated with public sector jobs, and a desire to limit the size of government, contemporary labor market strategy has focused on stimulating employment opportunities for the economically disadvantaged by reducing the costs of labor through wage bill subsidies to private employees. The WIN and Targeted Jobs Tax Credit programs exemplify this approach. Our study indicates that these targeted wage bill subsidy programs have been underutilized. Since this approach is based upon the incentive of minimizing the employer's operating costs, it was curious that these programs have not worked as anticipated. To resolve this issue we examine four potential problem areas: lack of knowledge about the programs; poor attitudes toward them; improper program design; and inefficient program administration. Our findings suggest (1) that both employers and government agency staff members feel that their knowledge of such programs·is inadequate; (2) that while employers generally possess positive attitudes toward these programs, they retain deep suspicions regarding government assistance for disadvantaged persons; (3) that agency staff are positive about this approach yet remain somewhat ambivalent, given that they consider it as competing for resources with the equally attractive objective of improving human capital; (4) that design issues do not appear to influence program underutilization; and (5) that there is wide variation in the efforts of local agencies to sell these programs and to administer them efficiently. Our evidence indicates that with the proper packaging and selling of such subsidies, they could become an effective tool in assisting the economically disadvantaged. The outlines of future research efforts to test that hypothesis are described. i
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