Introduction

In trying to improve labor market outcomes, public policy in the United States has traditionally focused more on the “labor supply side”: attempting to improve the quantity or quality of labor supply in order to improve earnings. However the quantity and quality of labor demand may also influence labor market outcomes, and may be influenced by public policy. Policies such as wage subsidies or tax incentives can effectively promote employment.

Issues

• What demand-side policies and programs work best for developing skills?
• What labor demand policies make sense for distressed local labor markets?
• What labor demand policies work best for the economically disadvantaged?
• How can labor demand policies best increase long-term skills development and lead to sustainable increases in earnings?

Selected Institute Research

An October 2010 presentation by Dr. Timothy J. Bartik presents cost per job numbers for various job creation options and gives detail on their construction.

A Proposal for Early Impact, Persistent, and Cost-Effective Job Creation Policies
Timothy Bartik, Upjohn Institute
Employment Research 17(1): 1-4, 2010

Improving Job Quality: Policies Aimed at the Demand-Side of the Low-Wage Labor Market
Paul Osterman, Massachusetts Institute of Technology

Chapter 6 in A Future of Good Jobs
Timothy Bartik and Susan Houseman, editors. Upjohn Institute Press, 2008

Jobs for the Poor: Can Labor Demand Policies Help?
Timothy Bartik, Upjohn Institute
Russell Sage Foundation and Upjohn Institute Press, 2001

More Institute Research about Demand-Side Programs

Useful Links

United States, Department of Labor, Employment & Training Administration Center for Budget and Policy Priorities (CBPP)