IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v30y2016i1p62-74.html
   My bibliography  Save this article

Do Incentive Programs Cause Growth? The Case of the Oklahoma Quality Jobs Program and Community-Level Economic Growth

Author

Listed:
  • Brian E. Whitacre
  • David Shideler
  • Randi Williams

Abstract

The academic literature on economic development incentive programs has generated mixed results, though most studies conclude that incentives do not lead to economic growth. Oklahoma has received high praise for its innovative Quality Jobs program, because it provides cash payments (not tax incentives) and emphasizes jobs with high wages and benefits. However, few evaluations of the program’s success in growing the state’s economy have been made. This study employs multivariate regression and mixed-pair analysis techniques and concludes that the economic growth between 1990 and 2005 was not statistically different between Oklahoma communities with businesses participating in the Quality Jobs program and those that were not participating. There was, however, a statistical difference in median household income growth when Oklahoma communities with participating businesses were compared with similar Kansas communities.

Suggested Citation

  • Brian E. Whitacre & David Shideler & Randi Williams, 2016. "Do Incentive Programs Cause Growth? The Case of the Oklahoma Quality Jobs Program and Community-Level Economic Growth," Economic Development Quarterly, , vol. 30(1), pages 62-74, February.
    • Handle: RePEc:sae:ecdequ:v:30:y:2016:i:1:p:62-74
    DOI: 10.1177/0891242415614641
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242415614641
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242415614641?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    2. Crandall, Mindy S. & Weber, Bruce A., 2004. "Local Social And Economic Conditions, Spatial Concentrations Of Poverty, And Poverty Dynamics," Working Papers 18916, Oregon State University, Rural Poverty Research Center (RPRC).
    3. Richard Voith, 1999. "The Suburban Housing Market: Effects of City and Suburban Employment Growth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(4), pages 621-648, December.
    4. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March.
    5. Laura A. Reese & Minting Ye, 2011. "Policy Versus Place Luck: Achieving Local Economic Prosperity," Economic Development Quarterly, , vol. 25(3), pages 221-236, August.
    6. Davis, Elizabeth E. & Weber, Bruce A., 2002. "How Much Does Local Job Growth Improve Employment Outcomes of the Rural Working Poor?," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 255-274, Summer/Fa.
    7. Tonya J. Hansen & Laura Kalambokidis, 2010. "How Are Businesses Responding to Minnesota’s Tax-Free Zone Program?," Economic Development Quarterly, , vol. 24(2), pages 180-192, May.
    8. Mark D. Partridge & Dan S. Rickman, 2005. "High-Poverty Nonmetropolitan Counties in America: Can Economic Development Help?," International Regional Science Review, , vol. 28(4), pages 415-440, October.
    9. Timothy J. Bartik, 2001. "Jobs for the Poor: Can Labor Demand Policies Help?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tjb2001, August.
    10. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    11. Partridge, Mark D. & Rickman, Dan S., 2007. "Persistent Pockets of Extreme American Poverty and Job Growth: Is There a Place-Based Policy Role?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(1), pages 1-24, April.
    12. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, August.
    13. Richard Voith, 1996. "The suburban housing market: the effects of city and suburban job growth," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 13-25.
    14. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    15. Mindy S. Crandall & Bruce A. Weber, 2004. "Local Social and Economic Conditions, Spatial Concentrations of Poverty, and Poverty Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1276-1281.
    16. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Timothy J. Bartik, 2018. ""But For" Percentages for Economic Development Incentives: What percentage estimates are plausible based on the research literature?," Upjohn Working Papers 18-289, W.E. Upjohn Institute for Employment Research.
    2. William M. Bowen & Haifeng Qian, 2017. "State spending for higher education: Does it improve economic performance?," Regional Science Policy & Practice, Wiley Blackwell, vol. 9(1), pages 7-23, March.
    3. Stephen M. Kosovich, 2019. "Employment impact of local economic development incentives: the case of Texas economic development corporations," Economics Bulletin, AccessEcon, vol. 39(3), pages 1808-1816.
    4. Anita Yadavalli & Jim Landers, 2017. "Tax Increment Financing: A Propensity Score Approach," Economic Development Quarterly, , vol. 31(4), pages 312-325, November.
    5. Jacqueline Chattopadhyay, 2018. "State Health Insurance Regulation and Self-Employment Rates After the Great Recession: The Role of Guaranteed Issue Mandates," Economic Development Quarterly, , vol. 32(1), pages 78-92, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    2. Mark D. Partridge & Dan S. Rickman & Ying Tan & M. Rose Olfert, 2015. "U.S. Regional Poverty Post-2000," Economic Development Quarterly, , vol. 29(1), pages 38-48, February.
    3. Linda Lobao & P. Wilner Jeanty & Mark Partridge & David Kraybill, 2012. "Poverty and Place across the United States," International Regional Science Review, , vol. 35(2), pages 158-187, April.
    4. Mark D. Partridge & Dan S. Rickman, 2005. "High-Poverty Nonmetropolitan Counties in America: Can Economic Development Help?," International Regional Science Review, , vol. 28(4), pages 415-440, October.
    5. Peters, David J., 2013. "Understanding the Poverty U-turn Across Geographic Scales in the American Midwest, 1980-2010," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    6. David J. Peters, 2011. "Place-Based Income Inequality Clusters in the Rural North Central Region, 1979–2009," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 222-240.
    7. Bruce Weber & Leif Jensen & Kathleen Miller & Jane Mosley & Monica Fisher, 2005. "A Critical Review of Rural Poverty Literature: Is There Truly a Rural Effect?," International Regional Science Review, , vol. 28(4), pages 381-414, October.
    8. David J. Peters, 2009. "Typology of American Poverty," International Regional Science Review, , vol. 32(1), pages 19-39, January.
    9. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    10. Timothy J. Bartik & George Erickcek, 2014. "Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits," Economic Development Quarterly, , vol. 28(4), pages 314-327, November.
    11. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers 12-185, W.E. Upjohn Institute for Employment Research.
    12. Khatiwada, Lila K., 2014. "Modeling and Explaining County-level Prosperity in the U.S," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    13. Stephan J Goetz & Mark D Partridge & Dan S Rickman & Shibalee Majumdar, 2011. "Sharing the Gains of Local Economic Growth: Race-to-the-Top versus Race-to-the-Bottom Economic Development," Environment and Planning C, , vol. 29(3), pages 428-456, June.
    14. Tilahun, Mesfin & Maertens, Miet & Deckers, Jozef & Muys, Bart & Mathijs, Erik, 2016. "Impact of membership in frankincense cooperative firms on rural income and poverty in Tigray, Northern Ethiopia," Forest Policy and Economics, Elsevier, vol. 62(C), pages 95-108.
    15. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    16. Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Clark University, vol. 90(2), pages 129-154, April.
    17. Partridge, Mark & Rickman, Dan & Tan, Ying & Olfert, M. Rose, 2013. "U.S. Regional Poverty Post-2000: The Lost Decade," MPRA Paper 48528, University Library of Munich, Germany.
    18. G. Jason Jolley & Mandee Foushee Lancaster & Jiang Gao, 2015. "Tax Incentives and Business Climate," Economic Development Quarterly, , vol. 29(2), pages 180-186, May.
    19. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty‐First‐Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164, June.
    20. Crandall, Mindy S. & Weber, Bruce A., 2005. "Trickling Down: Does Local Job Growth Reduce Poverty?," Working Papers 18915, Oregon State University, Rural Poverty Research Center (RPRC).

    More about this item

    Keywords

    tax incentives; economic development; average treatment effect; Quality Jobs program;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:30:y:2016:i:1:p:62-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.