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Differing Forms of Employment Incetive Programs: the Disappointing Results of Ohio's Attempts to Spur Job Growth

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Abstract:

Although Ohio has proven itself to be an important battleground state in early 21st century politics, Ohio’s economy continues to struggle with the transition to an information-based economy. The state’s unemployment rate remains well above national averages. In response to the lagging economy, in the late 1990s, Ohio became one of the first states to issue annual reports detailing government-sponsored job creation business incentives. Under the guidance of the Ohio Department of Development, Ohio has steadily increased its spending on direct cash assistance to business. This increase in direct cash assistance to business was initially deemed necessary to attract new business investment in an increasingly competitive business climate. Recent research on government sponsored business incentives has revealed little, if any, correlation between government-sponsored business incentives and county unemployment rates. Despite this low correlation between employment and state sponsored business assistance, Aepell (2005) discovered that state sponsored cash or near cash assistance has steadily risen on a national level since the early 1970s. An analysis of 366 businesses in Ohio by Gabe and Kraybill (2002) found that state-sponsored incentive programs in the state of Ohio might have actually decreased job growth over a two-year period. Bartik (2005) attributes the dismal performance of Ohio’s business incentive programs to poor strategy and a fundamental lack of accountability. Consequently, statistical analysis by Leroy (2004) indicates that incentives geared towards developing transportation, energy, proximity to suppliers, proximity to customers, and especially access to a highly skilled local workforce are more likely to attract and retain business and impact unemployment than traditional tax abatements and economic incentives.
While several studies have addressed the correlation between overall government sponsored business incentives and unemployment rates, little research has specifically focused on a comparative empirical analyses of the three categorical types of government sponsored job creation business incentives. This study will evaluate the impact of government sponsored business incentives on county unemployment rates by grouping several job creation incentives into three main categories based on the means used to spur job growth: comprehensive geographically-centered incentives (Enterprise Zones), retro-active job development incentives (Job Creation Tax Credits) and proactive job development incentives (direct assistance loans and grants).

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incent (98), tax (98), rate (94), busi (93), job (92), program (80), per (76), 2005 (76), develop (64), ohio (63), creation (61), state (53), zone (53), unemploy (53), counti (51), worker (51), chang (51), -05 (50), enterpris (49), variabl (46), 82 (44),
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Name: WESTERN POLITICAL SCIENCE ASSOCIATION
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http://www.csus.edu/ORG/WPSA/


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MLA Citation:

Coffey, Ryan. and Yacobucci, Peter. "Differing Forms of Employment Incetive Programs: the Disappointing Results of Ohio's Attempts to Spur Job Growth" Paper presented at the annual meeting of the WESTERN POLITICAL SCIENCE ASSOCIATION, La Riviera Hotel, Las Vegas, Nevada, Mar 08, 2007 <Not Available>. 2009-05-24 <http://www.allacademic.com/meta/p176610_index.html>

APA Citation:

Coffey, R. and Yacobucci, P. R. , 2007-03-08 "Differing Forms of Employment Incetive Programs: the Disappointing Results of Ohio's Attempts to Spur Job Growth" Paper presented at the annual meeting of the WESTERN POLITICAL SCIENCE ASSOCIATION, La Riviera Hotel, Las Vegas, Nevada Online <PDF>. 2009-05-24 from http://www.allacademic.com/meta/p176610_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Although Ohio has proven itself to be an important battleground state in early 21st century politics, Ohio’s economy continues to struggle with the transition to an information-based economy. The state’s unemployment rate remains well above national averages. In response to the lagging economy, in the late 1990s, Ohio became one of the first states to issue annual reports detailing government-sponsored job creation business incentives. Under the guidance of the Ohio Department of Development, Ohio has steadily increased its spending on direct cash assistance to business. This increase in direct cash assistance to business was initially deemed necessary to attract new business investment in an increasingly competitive business climate. Recent research on government sponsored business incentives has revealed little, if any, correlation between government-sponsored business incentives and county unemployment rates. Despite this low correlation between employment and state sponsored business assistance, Aepell (2005) discovered that state sponsored cash or near cash assistance has steadily risen on a national level since the early 1970s. An analysis of 366 businesses in Ohio by Gabe and Kraybill (2002) found that state-sponsored incentive programs in the state of Ohio might have actually decreased job growth over a two-year period. Bartik (2005) attributes the dismal performance of Ohio’s business incentive programs to poor strategy and a fundamental lack of accountability. Consequently, statistical analysis by Leroy (2004) indicates that incentives geared towards developing transportation, energy, proximity to suppliers, proximity to customers, and especially access to a highly skilled local workforce are more likely to attract and retain business and impact unemployment than traditional tax abatements and economic incentives.
While several studies have addressed the correlation between overall government sponsored business incentives and unemployment rates, little research has specifically focused on a comparative empirical analyses of the three categorical types of government sponsored job creation business incentives. This study will evaluate the impact of government sponsored business incentives on county unemployment rates by grouping several job creation incentives into three main categories based on the means used to spur job growth: comprehensive geographically-centered incentives (Enterprise Zones), retro-active job development incentives (Job Creation Tax Credits) and proactive job development incentives (direct assistance loans and grants).

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Associated Document Available WESTERN POLITICAL SCIENCE ASSOCIATION
Abstract Only All Academic Inc.
Associated Document Available Political Research Online

Document Type: PDF
Page count: 32
Word count: 7247
Text sample:
Differing Forms of Employment Incentive Programs: the Disappointing Results of Ohio’s Attempts to Spur Job Growth Ryan Coffey and Peter Yacobucci For information concerning this article please contact either Mr. Coffey or Dr. Yacobucci at: Department of Government and Foreign Affairs 2020 East Maple Street Walsh University North Canton OH 44720 (330) 490-7393 Paper prepared for presentation at the annual meeting of the Western Political Science Association Las Vegas Nevada – March 2007 Although Ohio has proven itself to
Journal. December 1983. “University Polymer Research Park Redevelopment Plan”. 2004. Akron Department of Planning and Urban Development. 22 September 2005. http://www.ci.akron.oh.us/planning/common/programs/upolypk.htm “Work Opportunity Tax Credit (WOTC) and Welfare-to-Work (WTW) Tax Credit Program”. 2004. Ohio Department of Job and Family Services. 22 September 2005. http://jfs.ohio.gov/wotc/index.stm. “Your Future….Here….Now!”. 2005. Ohio Workforce Board. 21 September 2005. http://www.ohioworkforce.org/business/. “Y-town Development”. 2004. Youngstown Economic Development. 22 September 2005. http://www.ytowndevelopment.com/. 32


Similar Titles:
When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs

The Impact of State Institutions on the Targeting of State Economic Development Policies and How It Matters: The Case of Enterprise Zones


 
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