These nine papers are from a conference held at Brookings Institution on April 3-4, 1980, focusing on subsidizing private sector job creation for workers with structural employment problems. Chapter 1 summarizes the papers and conference proceedings. The remaining nine chapters are divided into three parts consisting of three papers each. Part 1 (chapters 2-4) contains alternative methods of theoretical analysis of the effects of targeted employment subsidies on inflation and economic efficiency. It also discusses the distribution of employment and comparisons of the effects of workers' wage subsidies with those of employer wage subsidies and family income-tested cash grants. Part 2 (chapters 5-7) contains empirical work designed to shed light on the magnitude of the effects of employment subsidies on the same areas addressed in part 1. The three chapters in the last part are concerned with efficiency and cost implications of alternative designs for employment subsidies. Chapters 8 and 9 discuss administrative issues affecting program design. Chapter 10 summarizes European experiences with employment subsidies and their implications for program evaluation. Comments are found following each paper. (YLB)