The targeted jobs tax credit existed from 1979 through 1994


The Targeted Jobs Tax Credit existed from 1979 through 1994 and offered employers a tax credit for each less-skilled worker they employed. Assume that the tax credit was fixed at $3 per hour worked by a less-skilled worker. How would this tax credit have affected the demand curve for less-skilled workers? What are the predicted effects on wages and employment? Use a graph to illustrate your answer, and state clearly any assumptions you are making.

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Business Economics: The targeted jobs tax credit existed from 1979 through 1994
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