Tax Credits for Job Creation and Job Retention in the California Economy

Abstract

This article examines the potential impact of a wages-paid tax credit and a tax credit for the cost of retraining workers in California. The empirical results suggest that a wages-paid tax credit would be most effective in increasing employment atfirms with the fewest resources. The results also suggest that a tax credit for the cost of retraining workers would not be effective in the retention of workers.