The Effectiveness of Job Creation Tax Credits

50 Pages Posted: 13 Oct 2020

See all articles by Clayton Crooks

Clayton Crooks

affiliation not provided to SSRN

Shiferaw Gurmu

Georgia State University - Department of Economics

David L. Sjoquist

Georgia State University

Laura A. Wheeler

Georgia State University - Fiscal Research Center

Date Written: October 8, 2020

Abstract

We estimate the causal effects of job creation tax credits on employment using the exogenous spatial and time variations in the value of the credits across Georgia’s 159 counties over a 15-year period. We employ three empirical approaches: regression discontinuity design models making use of the sharp discontinuity in eligibility for credits of different value; difference-indifferences models using inter temporal and inter and intra-county changes in credit value, and; employment differences in bordering census tracts that qualify for different valued credits. We obtain mixed results, but in general they provide little evidence for the proposition that job creation tax credits create additional employment.

Suggested Citation

Crooks, Clayton and Gurmu, Shiferaw and Sjoquist, David L. and Wheeler, Laura A., The Effectiveness of Job Creation Tax Credits (October 8, 2020). Andrew Young School of Policy Studies Research Paper Series No. 20-03, Available at SSRN: https://ssrn.com/abstract=3707775 or http://dx.doi.org/10.2139/ssrn.3707775

Clayton Crooks

affiliation not provided to SSRN

Shiferaw Gurmu

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

David L. Sjoquist (Contact Author)

Georgia State University ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-413-0246 (Phone)

HOME PAGE: http://frp.aysps.gsu.edu/sjoquist/index.html

Laura A. Wheeler

Georgia State University - Fiscal Research Center ( email )

33 Gilmer Street, SE Unit 2
Atlanta, GA 30303-3082
United States
(404) 651-3519 (Phone)
(404) 651-0416 (Fax)

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