Present Law And Issues Relating to the Targeted Jobs Tax Credit (H.R. 452, H.R. 815, And H.R. 2098) : Scheduled for a Hearing Before the Subcommittee On Select Revenue Measures of the Committee of Ways And Means, On June 6, 1989 Jcs-13-89

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In addition, those certified for the TJTC may have displaced other targeted and non-targeted individuals from the workforce with no resulting net effect on total employment.
Targeted groups Only a small percentage of individuals eligible for certification are certified. One study estimates that less than 7 percent of eligi- ble disadvantaged youth hired in 1983 had the credit claimed for them. 2 Another study estimates that only 1.3 percent of employees in low-wage industries were certified, fu
...rthermore only 3.4 percent of adults below the poverty level were certified.^ If those certified are, on average, as employable as TJTC eligibles who are not certified, then one can view the certified group as a random sample of the total eligible population. In this view, the employment rate of certified individuals in the absence of the credit would be roughly the same as the current employment rate of noncertified eligible individuals. This argument implies that any net job creation is distributed among both noncertified and certified individuals.

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