Author: United States Department Of Labor

Publisher: Forgotten Books

Published: 2018-02-10

Total Pages: 140

ISBN-13: 9780484505642

Excerpt from The Use of Tax Subsidies for Employment: A Report to Congress by the Departments of Labor and Treasury; May, 1986 Temporary employment subsidies may cause changes in the time pattern of employment. Employment gains while the subsidy is in effect may come partly at the expense of future employment since a temporary subsidy provides an incentive to move planned produc tion and maintenance activities forward. However, the employment gains due to a temporary subsidy are not necessarily confined to the period during which the subsidy is in effect due to fixed costs, such as training costs, associated with hiring the subsidized employees. A general employment subsidy can be claimed against all of a firm's employment-both employment induced by the subsidy and employment that would have occurred in the absence of the subsidy. In contrast, an incremental employment subsidy attempts to limit payment of the subsidy to employment that was induced by the subsidy. In actual practice, induced employment can be estimated only with considerable error. Consequently, some firms are effectively made ineligible for an incremental subsidy, while others will receive payment for some employment that would have existed in the absence of the subsidy. Ineligible firms are placed at a competitive disadvantage. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.