#19: Breakdown - Employer Wage Subsidy Caps and Part-Time Work
Update: 2025-03-07
Description
Using tract-level Census data and triple difference estimators, the authors test whether firms increase their use of part-time workers when faced with capped wage subsidies. By limiting the maximum subsidy per worker, such subsidies create incentives for firms to increase the share of their payroll that is eligible for the subsidy by increasing use of part-time or low-wage workers. Results suggest that firms located in federal Empowerment Zones in the United States responded to the program’s capped wage subsidies by expanding their use of part-time workers, particularly in locations where the subsidy cap is likely to bind. There is also a shift toward hiring lower-skill workers. Authors: Elvery, Joel A., C. Lockwood Reynolds, and Shawn M. Rohlin.
Comments
In Channel
Download from Google Play
Download from App Store
United States00:00
00:00
x
