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Job creation policies and the Great Recession

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  • David Neumark

Abstract

The adverse labor market effects of the Great Recession have intensified interest in policy efforts to spur job creation. The two most direct job creation policies are subsidies that go to workers and hiring credits that go to employers. Evidence indicates that worker subsidies are generally more effective at creating jobs. However, the unique circumstances of recovery from the Great Recession, especially the weak demand for labor, make hiring credits more effective in the short term.

Suggested Citation

  • David Neumark, 2012. "Job creation policies and the Great Recession," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue mar19.
    • Handle: RePEc:fip:fedfel:y:2012:i:mar19:n:2012-08
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    References listed on IDEAS

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    1. Kenneth A. Couch & Douglas J. Besharov & David Neumark, 2013. "Spurring Job Creation in Response to Severe Recessions: Reconsidering Hiring Credits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(1), pages 142-171, January.
    2. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304.
    3. Timothy J. Bartik, 2001. "Jobs for the Poor: Can Labor Demand Policies Help?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tjb2001, November.
    4. Perloff, Jeffrey M & Wachter, Michael L, 1979. "The New Jobs Tax Credit: An Evaluation of the 1977-78 Wage Subsidy Program," American Economic Review, American Economic Association, vol. 69(2), pages 173-179, May.
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    Cited by:

    1. Antal, Miklós, 2014. "Green goals and full employment: Are they compatible?," Ecological Economics, Elsevier, vol. 107(C), pages 276-286.
    2. Ismail Baydur, 2017. "Worker Selection, Hiring, and Vacancies," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 88-127, January.

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    Keywords

    Public policy; Labor market;

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