ERIC Number: ED241618
Record Type: Non-Journal
Publication Date: 1982-Sep
Reference Count: N/A
Can Employer or Worker Subsidies Raise Youth Employment? An Evaluation of Two Financial Incentive Programs for Disadvantaged Youth. Final Report.
Rivera-Casale, Cecilia; And Others
In order to test the effects of financial subsidies on employment for disadvantaged youth, two experimental situations were set up: (1) a worker subsidy operating in Cambridge, Massachusetts, and (2) an employer subsidy operating in Wilkes-Barre, Pennsylvania. The first project, the Cambridge Job Factory Voucher Experiment, tested a voucher payment directly to youth combined with a job search assistance program. In order to separate the effects of these two treatments, two experimental groups (full-treatment and voucher only) and a control group were used. The second project, the Wilkes-Barre Job Search Voucher Experiment, tested the impact of making wage vouchers or tax subsidies available to employers hiring disadvantaged youth. To distinguish the new experimental vouchers from the Target Job Tax Credit (TJTC) already available to firms hiring 18-24 year olds, the new voucher was given only to firms hiring 16-17 year olds. The experimental design was set up in such a way that the new voucher could be compared with TJTC. The findings from the study suggest that employee wage subsidies do raise the employment prospects of disadvantaged youth. Wage subsidies paid directly to youth are more effective than wage subsidies combined with other services such as job search assistance. The study finds no evidence to support the policy of employer-based wage subsidies for hiring disadvantaged youth, either in the form of vouchers or TJTC. (Author/CMG)
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: Employment and Training Administration (DOL), Washington, DC. Office of Youth Programs.
Authoring Institution: Brandeis Univ., Waltham, MA. Florence Heller Graduate School for Advanced Studies in Social Welfare.