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Employment rates and average wage of Targeted Jobs Tax Credit participants in Florida compared to selected Job Training Partnership Act participants by target groups

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Date Issued:
1993
Summary:
Purpose. The purpose of this study was to examine the third quarter 1992 employment rates and average wages of individuals who were Targeted Jobs Tax Credit (TJTC) certified in Florida during the third quarter of 1987. The employment rates and average wages were compared to a select group of individuals who were released for employment in Florida by the Jobs Training Partnership Act (JTPA) during the same time period. The primary research question concerned the effectiveness of the TJTC program, a tax expenditure program, compared to the direct budget program JTPA. Problem. The social goal of both programs was to encourage firms to hire those individuals who traditionally experience high unemployment rates. The TJTC approach was intended to increase employment incentives to employers to recruit, hire, and train members of specific target groups. In general, JTPA provides training then releases the individual for employment. Critics of TJTC have claimed that the employers have hired individuals who they would have hired anyway (windfalls) or that they have laid off non-target group members (substitutions). Employers have also been criticized for not providing the necessary training to provide for long term employment. Methodology. The study examined the employment records of four sets of individuals: (1) individuals who were TJTC vouchered but not certified, (2) individuals who were TJTC certified, (3) individuals who completed JTPA training and were not TJTC eligible, and (4) individuals who completed JTPA training, were TJTC eligible but not vouchered. This study included five target groups: disadvantaged youth; disadvantaged ex-convicts; AFDC recipients; disadvantaged Vietnam veterans; and vocational rehabilitation referrals. The economic status was identified as employment rates and mean wages. Both chi-square and log-linear analysis were used to compare the employment rates for each target group and each race, for both TJTC and JTPA one program was more effective in increasing the probability of future employment. Variance analysis was used to determine if one program was more effective in increasing future compensation for members of a target group. Findings. TJTC served many more individuals than JTPA across of the five target groups. JTPA may increase the probability of employment for AFDC recipients and Whites. The mean wage was found to be independent of both TJTC and JTPA. The disadvantaged Vietnam Veterans had the highest mean wage and the AFDC recipient the lowest. The mean wage for Blacks was found to be lower than that of other races.
Title: Employment rates and average wage of Targeted Jobs Tax Credit participants in Florida compared to selected Job Training Partnership Act participants by target groups.
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Name(s): Gnage, David Charles
Florida Atlantic University, Degree Grantor
Thai, Khi V., Thesis Advisor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Issued: 1993
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 207 p.
Language(s): English
Summary: Purpose. The purpose of this study was to examine the third quarter 1992 employment rates and average wages of individuals who were Targeted Jobs Tax Credit (TJTC) certified in Florida during the third quarter of 1987. The employment rates and average wages were compared to a select group of individuals who were released for employment in Florida by the Jobs Training Partnership Act (JTPA) during the same time period. The primary research question concerned the effectiveness of the TJTC program, a tax expenditure program, compared to the direct budget program JTPA. Problem. The social goal of both programs was to encourage firms to hire those individuals who traditionally experience high unemployment rates. The TJTC approach was intended to increase employment incentives to employers to recruit, hire, and train members of specific target groups. In general, JTPA provides training then releases the individual for employment. Critics of TJTC have claimed that the employers have hired individuals who they would have hired anyway (windfalls) or that they have laid off non-target group members (substitutions). Employers have also been criticized for not providing the necessary training to provide for long term employment. Methodology. The study examined the employment records of four sets of individuals: (1) individuals who were TJTC vouchered but not certified, (2) individuals who were TJTC certified, (3) individuals who completed JTPA training and were not TJTC eligible, and (4) individuals who completed JTPA training, were TJTC eligible but not vouchered. This study included five target groups: disadvantaged youth; disadvantaged ex-convicts; AFDC recipients; disadvantaged Vietnam veterans; and vocational rehabilitation referrals. The economic status was identified as employment rates and mean wages. Both chi-square and log-linear analysis were used to compare the employment rates for each target group and each race, for both TJTC and JTPA one program was more effective in increasing the probability of future employment. Variance analysis was used to determine if one program was more effective in increasing future compensation for members of a target group. Findings. TJTC served many more individuals than JTPA across of the five target groups. JTPA may increase the probability of employment for AFDC recipients and Whites. The mean wage was found to be independent of both TJTC and JTPA. The disadvantaged Vietnam Veterans had the highest mean wage and the AFDC recipient the lowest. The mean wage for Blacks was found to be lower than that of other races.
Identifier: 12356 (digitool), FADT12356 (IID), fau:9257 (fedora)
Note(s): Thesis (Ph.D.)--Florida Atlantic University, 1993.
Subject(s): New jobs tax credit--United States
Occupational retraining--Law and legislation--United States
Employees--Training of
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/12356
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.