I estimate a structural model of employer recruitment choice using data from the Multi-City Study of Urban Inequality (MCSUI), a 1992-1995 cross-sectional survey of employers and households in four metropolitan areas of the United States. I then conduct policy simulations to predict the effects of “information” policies such as the Workforce Investment Act of 1998 and “hiring incentive” policies such as the Welfare-to-Work and Work Opportunity tax credits. I find that the tax credits are superior to the information policy, both in improving placement rates for the low-skilled worker groups they target, and in increasing the starting wage distribution for these workers.
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Paper provided by EconWPA in its series Labor and Demography with number
0508006.
Length: Date of creation: 08 Aug 2005 Date of revision: Handle: RePEc:wpa:wuwpla:0508006
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