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Evidence on the Minimal Management Principle of Program Design: Implementation of the Targeted Jobs Tax Credit

Implementation problems in the Targeted Jobs Tax Credit (TJTC) challenge the conclusion, drawn from the study of policy implementation, that programs using a market mechanism are more easily and effectively implemented than programs with heavily managed, public delivery systems. TJTC sought to expand employment opportunities for targeted individuals through a tax credit voucher system but it experienced several of the implementation problems observed in programs using public delivery systems. Implementers were unable to influence the employer response to the tax credit, lower-level bureaucrats failed to implement the instructions of their superiors, and third-party vendors absorbed program monies and successfully pressured implementers to facilitate vendor activities.