From Dr. Mommaerts:
“The US spends billions of dollars each year on policies to promote employment and upward economic mobility among disadvantaged groups. This talk centers on a paper that studies the effects of its largest wage subsidy program, the federal Work Opportunity Tax Credit (WOTC), which provides subsidies to firms that hire categories of disadvantaged workers and subsidizes 4% of new hires annually. Our results provide insights into the functioning of low-wage labor markets, where market structure can limit the efficacy of well-intended policy.”
