Download or read book Policies to Encourage Job Creation written by David Neumark (Econoom.) and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Great Recession has spurred interest in policy efforts to spur job creation. This article surveys existing research on two 'direct' job creation policies: subsidies to employers to hire workers ('hiring credits'); and subsidies to individuals to enter the labor market ('worker subsidies'). The research suggests that in the short-term, when recovery from the recession is a priority, hiring credits are likely a more effective policy response. First, hiring credits are likely more cost effective, as long as they focus on the recently unemployed and create incentives for new job creation. Second, in general, worker subsidies better target benefits to low-income families and especially single mothers. At this juncture, however, because the recession fell so heavily on men, a hiring credit focused on the unemployed may target low-income families well, and the usual distributional concern with low-income female-headed households may be less paramount. And third, employment subsidies may not be as effective when there is high cyclical unemployment. In the longer-term, however, when the labor market has recovered more from the recession and the focus can shift to longer-standing employment problems and distributional concerns, greater reliance on worker subsidies may do more to increase employment while shifting the distribution of benefits more toward lower-income households -- National Bureau of Economic Research web site.