big ideas for jobs overview summary
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8/3/2019 Big Ideas for Jobs Overview Summary
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Tree basic approaces emerged i our searc:
Tweakig a existig federal emplomet or tax
polic so tat it ca be implemeted at te state
or local leel.
helpig small busiesses geerate more jobs.
Deelopig ew jobs i emergig or resurget
sectors, suc as clea eerg ad maufacturig.
Our list touces o te major geerators of job
growt from priate ad public sectors: small
busiess, ew markets, public emplomet ad tax
polic. Te list stads out as distictie i at least two
was: Eac jobs idea offers potetial for local ad
state actio; ad our jobs ideas are particularl
releat for low-skilled workers.
Moreoer, seeral of our big ideas directl address a
eglected part of te uemplomet debate: job qual-
it. Te ecoom of toda is still creatig jobs iserices ad ealt care. Ma of tese jobs are low-
paig, witout adequate beefits ad wit few
prospects for career adacemet. not surprisigl,
tere is a lot of turoer i tese positios because of
te ature of te jobs temseles. We beliee reducig
tis job cur sould be part of a sort-term job cre-
atio approac, as well as retetio more geerall.
THE IDEAS
Federal Tax and Employment Policy Approaches
Oe set of jobs ideas addresses federal tax policies
ad examies ow effectie polic cages could be
for disadataged workers. Toug ma of te jobs
created uder tese programs will be sort-term,
most will be ew, witout displacig a workers. Te
ideas iclude:
Hiring Credits During Recessions: Daid
neumark at Uiersit of Califoria, Irie sows
ow irig tax credits for eer ew job a
emploer adds are a effectie sort-term polic
i respose to a recessio.
Subsidized Jobs: Elizabet Lower-Basc of te
Ceter for Law & Social Polic demostrates ow
subsidized jobs programs, suc as tose uder
te TAnF Emergec Fud, are more effectie for
disadataged workers ta te Work Opportu-
it Tax Credit.
Short Time Compensation: vera Brusetse at
te Uiersit of Delaware ad Wae vroma at
te Urba Istitute demostrate tat jobs ca be
saed if compaies reduce ours for all emplo-
ees ad supplemet wages wit uemplomet
isurace moe, rater ta laig off some
workers. Tis is a particularl effectie strateg i
states reliat o maufacturig durig recessios. Infrastructure Investment: Scott Berstei at
te Ceter for neigborood Tecolog ad Joel
Rogers at te Ceter o Wiscosi Strategies
suggest usig priate capital i ifrastructure
projects uder public performace terms i
order to proide speed ad competece to
curret iestmet processes.
Direct Job Creation: Pilip hare at Rutgers
Uiersit-Camde explores te feasibilit of state
or local goermet creatig public jobs, modeled
o te WPA.
Sectoral or Industry Approaches
Sectoral or idustr approaces offer sort-term job
opportuit ad build capacit to elp te U.S. com-
pete globall i te log-term. Policmakers ae
attempted to spur te clea eerg ad maufactur-
ig sectors wit mixed success. yet, eerg efficiec
retrofits ad te recclig idustr offer promise wit
just miimal job displacemet.
Retrofitting Institutions: Sata Rodes-Cowaad er colleagues at te Ceter o Wiscosi
Strateg sow ow te lowest-agig fruit for
eerg efficiec retrofits is i muicipal, uier-
sit, scool, ad ospital buildigs.
Turning Waste into Jobs: nace Gree Leig at
Georgia Tec aalzes ow waste diersio ca create
ew jobs troug bot regulator ad demad-
side strategiesturig waste ito jobs, ot ladfill.
Retrofitting Homes: Bill Lester at Uiersit of
nort Carolia at Capel hill demostrates te
ecoomic logic of a real estate trasfer tax to
support residetial retrofits. Reviving Manufacturing: Susa Cristoperso at
Corell Uiersit argues tat maufacturig as a
future i te U.S., ad could be supported troug
paroll tax iceties ad more strategic approaces
to eerg ad ecoomic deelopmet policies.
Improving Early Childhood Education Jobs: Stee
herzeberg at Kestoe Istitute ad Elaie Weiss
at te Ecoomic Polic Istitute tur to te serice
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sector, sowig ow improig te qualit of cild
care jobs could reduce turoer i tat sector wile
eacig iestmets i our future workforce.
Entrepreneurship Approaches
Fosterig self-emplomet, workig wit commuit
parters o emergig sectors, ad remoig regula-tor barriers for immigrat workers ad miorit
busiess owers ca brig broader, more sustaiable
emplomet.
Community-Based Job Creation: A team from te
Corporatio for a Skilled Workforce argues for job
creatio partersips witi commuities
empasizig buildig decostructio, eerg
retrofittig ad food productio.
Capturing the Shadow Economy: Aa Kim at
Pomoa College sows ow brigig iformal
jobs i immigrat commuities ito te formal jobmarkets ca create ew jobs wile improig our
coutig of all jobs.
Regulatory Relief for Minority-Owned Businesses:
Timot Bates at Wae State Uiersit sows
ow to improe access to capital for miorit-
owed busiesses b eforcig existig laws out-
lawig small-busiess discrimiatio i ledig.
Tax Benefits for Entrepreneurs: Bill Scweke at
CFED explais ow te goermet ca leerage
Scedule C tax preparatio assistace for te self
emploed , tereb allowig workers to accesscurret tax credits, creatig additioal jobs.
Idiiduall, eac jobs idea as a small or modest
impact o te curret job sortage. But togeter, te
sow ow to make collectie impact b a multi-
proged approac, iolig local or state actio
eabled b a federal structure. Based o tis
researc, we estimate tat for a wide rage of costs
from $1,000 to $230,000 per job we could spur
te creatio of a ariet of jobs, from part-time self-
emplomet troug full-ear, full-time ig qualit
jobs (see table).Togeter, tese ideas could create,retai, or improe millios of jobs.
We ae looked for job creatio ideas tat could pa
for temseles or rel upo ew or re-purposed
sources of fiacig. We ae bee ol partiall suc-
cessful. For ma of tese ideas, iestmet is
required. But we beliee tere are utapped sources
of fiacig at te local, state, ad federal leels to
support tese iestmets. We also beliee tere are
oter iable fiacig ideas et to be idetified tat
could be used to iest i job creatioad perapsmore criticall as te public sector seds jobs, preser-
atio as well.
Our searc for big ideas is ogoig, wit solicitatios
for aoter roud i te works. But we beliee we
ae foud a iitial set of good, iable ideas tat
sould be gie a more detailed look. We ae also
foud a lot of muddled tikig about te leers for
creatig jobs; distictios betwee job creatio,
preseratio, ad qualit; ad scalable ideas tat ae
passed a proof of cocept i some form. Oe of te
most difficult calleges, paradoxicall, as bee lik-ig specific iestmets or polic cages to a
expected umber of ew jobs.
We eed lots of big ideas if we are to oercome our
jobs callege. Ad we eed jobs iestmets to bub-
ble up from cities, states, ad regios as well as from
smart federal actio. Our sample of job creatio ideas
is just a start.
Individually, each jobs idea has a smallor modest impact on the current job
shortage. But together, they show how
to make collective impact by a multi-
pronged approach. . .these ideas could
create, retain, or improve millions of jobs.
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Big Ideas for Jobs Creation and Preservation Potential
Proposal Job Creation/Preservation Potential
Type of Job(full-time/ part-time, length)
NationalEstimate
Per $1 BillionInvestment
Public SectorCost per Job1 Caveats, Notes, Assumptions
Job Creation
Hiring CreditsFT, unknownduration 23,810 $9,100-$75,000
Range derived from studies; depends on
extent of "windfall," i.e., hires that would havehappened anyway.
SubsidizedJobs Programs
FT, unknownduration 80,000 $2,500-$25,000
Includes only publicly subsidized share ofwages; does not include administrative costs.
Direct JobCreation
FT job person-year 38,223 $26,162
Net cost including additional tax receipts, pro-gram revenues, and savings in unemploymentinsurance, Medicaid and CHIP expenditures,but not multiplier effects.
Making MUSHEnergy Efficient
FT/PT jobs, oneyear each 5,328
$143,000-$230,000 gross costs
Range derived from studies; may be financedvia cost savings from energy efficiency.
Reuse,Recycling,Remanu-facturing
FT/PT jobs, un-known duration 16,529
$5,000-$116,000
gross costs
There are no standard data on the cost of job
creation in the various sectors of the R
3
industry. Case studies provide a range, withthe non-profit costs significantly lower than thefor-profit. However, since these firms must beprofitable to survive, their labor costs will besufficiently covered by their revenues.
RE TransferTaxes for En-ergy Efficiency
FT/PT jobs, oneyear each 9,424
$106,111gross costs
Based on assumptions for North Carolina; maybe financed by taxes generated from neweconomic activity.
ManufacturingFT, unknownduration 23,8102 $9,100-$75,000
Range derived from studies; depends onextent of "windfall," i.e., hires that would havehappened anyway.
Self-Employment FT/PT jobs, un-known duration 500,000 $1,000-$3,000 Cost is per self-employed business; businessmay not provide full income.
CSW - BuildingDeconstruction
FT job person-year 7,771
$128,676gross costs
Based on assumptions for Detroit. This policyis potentially cost-neutral (no new costs fromwhat already spent on demolition).
CSW - HomeEnergy Retrofits
FT job person-year 6,182
$136,842-$186,667
gross costs
Range derived from studies and based on as-sumptions for Detroit.Public cost varies depend-ing on level of private investment leveraged.
MBE FinancingFT job person-year 22,222
$45,000gross costs
Assumes loans made to firms that hire oneworker per $45,000 in firm total assets.
Job Preservation
Short TimeCompensation
1/5 FT job per-son-year 444,444 $2,000-$2,500
$1,560 is the added payout of 52 weeks of
STC versus 52 weeks of regular UI benefits;range reflects different administrative costs.
Early ChildhoodEducation
FT job person-year 66,667 $15,000
Assumes $6/hour pay increase plus benefitsand training.
Sources: Bates (2011); Brusentsev & Vroman (2011); Christopherson (2011); Di Ramio, et al (2011); Harvey (2011); Herzenberg-Weiss (2011);Irwin, et al (2011); Leigh (2011); Lester (2011); Lower-Basch (2011); Neumark (2011); Schweke (2011); author's calculations.Endnotes:1 Assumes midpoint costs for all ranges. All calculations exclude indirect job creation and multiplier effects. Administrative costs are included in allestimates, except where noted. Ideas that include gross costs generally account for materials, overhead, and other non-labor costs as well.2 In the case of manufacturing, assumes that employers use hiring credits.
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About Big Ideas for Job Creation
Big Ideas for Job Creation, a project of the Institute for Research on Labor and Employment at the
University of California, Berkeley, with the support of the Annie E. Casey Foundation, tapped into the innovative
thinking of leading experts across the nation to develop job creation proposals. Every idea had to meet
the following criteria: designed for implementation by cities and/or states and will lead to net new job
creation in the short-term; practical, sustainable, scalable and already tested; and all jobs created shouldbe accessible for low-skilled workers and offer some career opportunity. Taken together, these Big Ideas
can create millions of new jobs for our country.
For more information, visit http://www.BigIdeasforJobs.org