Toward a Best Practice for Evaluating the Impact of Government Programs on Job Creation

Abstract

This article reviews and analyzes the results of a literature search for studies evaluating the impact of government programs on job creation. Issues that complicate the interpretation of any impact measurement method are identified. Advantages and disadvantages for each methodology are described. It is concluded that no single methodology allows for a complete assessment. The use of a combination of user/company surveys and user-selected case studies is recommended. If a financial analysis is required, a modified cost/benefit analysis should be included. The weaknesses of each of these methodologies are minimized by the introduction of complementary methods.