Hamersma brief on work opportunity and Welfare-to-Work Tax Credits published in National Tax Journal
Nov 30, 2003
The Work Opportunity and Welfare-to-Work Tax Credits: Participation Rates Among Eligible Workers
Sarah Hamersma
National Tax Journal, November 2003
This paper examines participation in the Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work Tax Credit (WtW), two federal employer subsidy programs. Hamersma uses nationally-representative data to estimate the number of disadvantaged workers whose employers qualified for either of the credits in 1997 or 1999. Hamersma compares these estimates to the number of applications approved in each year. Estimated participation in 1999 was less than 17 percent among eligible disadvantaged youth. While participation was higher for welfare recipients, even upper-bound esimates are less than 33 percent. These low participation rates are consistent with those of similar programs in previous years.
Related News
Commentary
Oct 22, 2024
Commentary
Oct 11, 2024
Commentary
Sep 20, 2024
Commentary
Sep 11, 2024