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A Hiring Incentive that Works: The California Competes Tax Credit

By David Neumark, Matthew Freedman, Benjamin Hyman, Shantanu Khanna

Established in 2013, the California Competes Tax Credit (CCTC) boosts firm employment and payroll growth within California by as much as 30 percent within three years. This growth benefits a wide range of workers and is greater in parts of the state with higher levels of poverty and unemployment.

blog post

California Jobs and Labor Force Are Still Down but Recovering

By Sarah Bohn, Marisol Cuellar Mejia, Julien Lafortune

Employment is still well below pre-pandemic levels, though the number of jobs continues to increase. Despite the state’s rapid recovery so far, underemployed and discouraged workers remain a key concern.

California Economic Policy, Report

Are Businesses Fleeing the State? Interstate Business Relocation and Employment Change in California

By David Neumark, Junfu Zhang, Brandon Wall

A commonly heard theme in recent public debates about California's economic problems is that the state's economy is hostile to the needs of business. As evidence, it is asserted that businesses are leaving the state in droves, taking Californians' jobs. In reality, little is actually known about the trend of out-of-state business relocation. In this issue of California Economic Policy, the authors examine the phenomenon in a more complete context. They find that California does in fact lose businesses and jobs because of relocation, but the effect on employment is negligible.

blog post

Six Months of Economic Crisis: What Is Next?

By Sarah Bohn, Marisol Cuellar Mejia, Julien Lafortune

California continues to confront the pandemic and its economic effects. What has this downturn meant for the state’s labor market? And what factors are likely to shape the recovery?

blog post

Bay Area Recovery May Lag without Onsite Tech Workers

By Sarah Bohn, Marisol Cuellar Mejia, Julien Lafortune

Unemployment in the San Francisco Bay Area is lower than statewide. But a sustained recovery—especially in the region’s downtown districts—could depend on many employees shifting back to onsite work as the pandemic recedes.

Report

Employers and Welfare Recipients: The Effects of Welfare Reform in the Workplace

By Harry J. Holzer, Michael A. Stoll

Although employment rates among welfare recipients have risen substantially since the early 1990s, many questions about welfare-to-work efforts remain. What are the employment prospects of the least skilled and least experienced welfare recipients? What are the chief obstacles to hiring them? How well do they perform? Are their wages and benefits sufficient to achieve financial independence over time? This report draws on employer survey data from four cities (including Los Angeles) to answer these and other questions. In addition to analyzing the survey responses, the authors compare the success these cities have had in moving welfare recipients into the workforce. They also explore the policy implications of their findings.

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