Economic Development Incentives, Reported Job Creation, and Local Employment

State and local policymakers continue to utilize and place an important emphasis on economic development incentives as a means of attracting and retaining employers, with tax increment financing (TIF) being one of the more popular incentives. Recently, a number of states have increased reporting requirements for local economic development agencies in an attempt to ensure that targeted incentives are achieving their stated objectives. However, the economic validity of these reported jobs depends heavily on the extent to which the incentives draw new economic activity into an area. This paper examines the credibility of the number of jobs reported by local economic development agencies in Missouri as having been created or retained by TIF. The paper examines the impact of these reported jobs on county employment, as measured by the Bureau of Labor Statistics. Results suggest the number of jobs reportedly created by TIF districts do not significantly impact county employment