Employer Wage Subsidy Caps and Part-Time Work

Bibliographic Data

ID3267432
AuthorsJoel A Elvery, Joel Elvery (0000-0001-7908-5470), Curtis Lockwood Reynolds (0000-0003-3409-743X), Shawn M Rohlin (Joel A. Elvery is a Policy Economist in the Research Department at the Federal Reserve Bank of Cleveland. C. Lockwood Reynolds is an Associate Professor of Economics at Kent State University. Shawn M. Rohlin is a Professor of Economics and Director of the John S. Brinzo Center for Entrepreneurship and Business Innovation at Kent State University), Shawn Rohlin (0000-0002-6956-1012, Kent State University)
Year2023
Volume76
Issue1
Pages189-209
Publication date2023-01-01
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/00197939221102865
OpenAlexW4281671778
LanguageEN
Citations received2
References cited31

Using tract-level US 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. Results also show a shift toward hiring lower-skill workers

Business · Census · Census tract · Demographic economics · Economics · Incentive · Labour economics · Limiting · Microeconomics · Part-time employment · Payroll · Subsidy · Wage · Work (physics) · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Urban, Neighborhood, and Segregation Studies

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