Impact of Tax Incentives on the Unemployment Rate: Evidence From Ohio
As discussed in earlier chapters, many regional development policies that attempt to increase employment do so by providing financial incentives to firms. These have included industrial revenue bonds (IRBs), property tax abatements, direct state loans, and customized industrial training. For various reasons, the effectiveness of such policies — specifically, tax incentives — continues to be questioned. This is because it is unclear whether taxes affect firm location decisions; and even if they do, the nature of their impact on the regional economies adopting them remains unclear. While Chapter 2 provides the theoretical framework for understanding the effects of such programmes on their regional economies, this chapter provides empirical support for the effects of tax incentives, from another Midwestern state of the USA.
KeywordsUnemployment Rate Census Tract Block Group Reservation Wage Census Block Group
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