A study examined the effects of the Targeted Jobs Tax Credit (TJTC) on employment patterns among those eligible for and those ineligible for TJTC. The rate at which TJTC-eligible persons penetrated the labor market and the resultant displacement of persons not eligible were examined in terms of TJTC-related variables, personal characteristics, and state employment characteristics. It was discovered that although TJTC eligibility helped eligible youth find employment during the TJTC's initial years, this advantage has since vanished. The TJTC vouchering of disadvantaged youth did not appear to result in any labor market displacement of nondisadvantaged youth. In fact, the TJTC appeared to have the effect of creating jobs. The overall job creation effects of TJTC range from 200,000 to 300,000 additional jobs. However, most of the additional employment accrued to those not eligible. The vouchering employment creation effect among noneligible persons occurred for females, whereas the employment enhancement that occurs for eligible persons due to certification was stronger for males. (MN)