State Job Creation Strategies Often Off Base

Michael Mazerov and Michael Leachman

Jobs created by out-of-state businesses represent less than one-sixth of local total job creation. In contrast, “home grown” firms, those already existing or starting up within a state, produce more than 80 percent of total new jobs. These figures uncovered by Center on Budget and Policy Priorities researchers Michael Mazerov and Michael Leachman suggest a reconsideration of corporate subsidies and tax breaks to encourage business relocation. The authors recommend re-directing those investments towards workforce development and improving the living conditions of local communities.

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