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  • 8/3/2019 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