ECONOMIC DEVELOPMENT AND CETA: THE EMPLOYMENT IMPACTS OF ECONOMIC DEVELOPMENT ASSISTANCE TO PRIVATE SECTOR FIRMS IN PHILADELPHIA
The underlying assumption of economic development is that financially targeted assistance will maintain and/or expand local economies, which in turn will provide jobs to the economically disadvantaged. The purpose of this dissertation is to explore the relationship between economic development assistance provided by local agencies to private sector firms and employment generation, particularly of jobs accessible to the CETA client population. The empirical research is based on interviews with 75 private sector firms in Philadelphia which have received economic development assistance in the form of various types of capital subsidies from 1975 to 1980. The sample is divided into case study and survey subsets. Both the descriptive statistical and the multiple regression analyses indicate that externally verifiable patterns do exist in relating individual firm characteristics to employment generation, as well as to firms' predictive accuracy in estimating employment change. The major qualitative findings center on the private sector employers' overwhelmingly negative view of CETA clients. As a result, the percentage of jobs generated by public subsidies to private firms that had been accessed or could be accessed by CETA clients is scarcely any at all. However, the negative perception of CETA eligibles by employers, especially in terms of the motivational and attitudinal levels manifesting a lack of social and behavioral skills, may simply be a reflection of a racist/classist perspective. Thus, the "trickle-down" theory of job creation for the long term economically disadvantaged does not appear to work. Linking the job creation goals of economic development with the job training and placement goals of employment and training programs such as CETA have not been successful. Therefore, it would appear to be in the best interests of social welfare policy if business programs were not considered social welfare programs. Non-traditional community based enterprises, non-profit or government organizations which are willing to consider the worker's development and success a significant value in addition to his/her competitive productivity should be explored as recipients of economic development investments aimed at job generation.
|Year of publication:||
|Authors:||ROFUTH, TODD WILLIAM|
|Type of publication:||Other|
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