Job Creation Tax Credits and Job Growth: Whether, When, and Where? by Robert S. Chirinko and Daniel J. Wilson (2010).
This paper studies the effects of Job Creation Tax Credits (JCTCs) enacted by U.S. states over the past 20 years. First, we investigate whether JCTCs stimulate within-state job growth. Second, we evaluate when JCTCs’ effects occur? In particular, we test for negative anticipation effects between JCTC enactment and when legislation goes into effect. Third, we assess from where any increased employment comes from – in-state or out-of-state? These questions are investigated in an event study framework applied to monthly panel data on employment, the JCTC effective and legislative dates, and various controls.
