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How Can California Spur Job Creation?

David Neumark | February 2011

Summary

California has both short- and long-term unemployment problems. This report examines the effectiveness of two direct job creation policies: hiring credits – subsidies to employers to hire workers – and worker subsidies – subsidies to individuals to enter the labor market. In the short-term, a well-designed hiring credits program is a more effective response to downturns in the business cycle. In the long term, worker subsidies are a better way to address the state’s chronic unemployment problems.

This report was supported with funding from the Donald Bren Foundation.

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