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A Voucher Supplement To Existing Anti-Discrimination Programs In The Job Market

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  • Neil Garston

    (California State University, Los Angeles)

  • Tom Larson

    (California State University, Los Angeles)

  • Madhu S. Mohanty

    ()
    (Department of Economics and Statistics, California State University, Los Angeles)

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    Abstract

    This paper draws on literatures on vouchers and discrimination, and derives an optimal voucher scheme as a supplement to standard anti-discrimination policies, including affirmative action. Surveying current policy methods, it compares efficiency and distributional effects of vouchers to those of the standard enforcement policies. The motivation for vouchers is based on efficiency, equity, and on observed divergence of racial unemployment rates combined with convergence of wage rates.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume32/V32N2P331_354.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 32 (2006)
    Issue (Month): 2 (Spring)
    Pages: 331-354

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    Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:331-354

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    Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
    Phone: (201) 684-7346
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    Web page: http://www.ramapo.edu/eea/journal.html
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    1. Gary Burtless, 1985. "Are targeted wage subsidies harmful? Evidence from a wage voucher experiment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
    2. Dubin, Jeffrey A. & Rivers, Douglas, 1993. "Experimental estimates of the impact of wage subsidies," Journal of Econometrics, Elsevier, Elsevier, vol. 56(1-2), pages 219-242, March.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. Richard B. Freeman, 1973. "Changes in the Labor Market for Black Americans, 1948-72," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1), pages 67-132.
    5. Jonathan S. Leonard, 1984. "Employment and Occupational Advance Under Affirmative Action," NBER Working Papers 1270, National Bureau of Economic Research, Inc.
    6. Johnson, Janet L, 1983. "Sex Differentials in Unemployment Rates: A Case for No Concern," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 91(2), pages 293-303, April.
    7. Abowd, John M & Killingsworth, Mark R, 1984. "Do Minority-White Unemployment Differences Really Exist?," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 2(1), pages 64-72, January.
    8. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, Elsevier, vol. 61(1), pages 5-21, March.
    9. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 38(3), pages 483-568, September.
    10. Lee, Lung-Fei, 1979. "Identification and Estimation in Binary Choice Models with Limited (Censored) Dependent Variables," Econometrica, Econometric Society, Econometric Society, vol. 47(4), pages 977-96, July.
    11. Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
    12. Fairlie, Robert W & Sundstrom, William A, 1997. "The Racial Unemployment Gap in Long-Run Perspective," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 306-10, May.
    13. James J. Heckman & Kenneth I. Wolpin, 1976. "Does the contract compliance program work? An analysis of Chicago data," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 29(4), pages 544-564, July.
    14. Richard Butler & James J. Heckman, 1977. "The Government's Impact on the Labor Market Status of Black Americans: A Critical Review," NBER Working Papers 0183, National Bureau of Economic Research, Inc.
    15. Stephen A. Woodbury, 2009. "Unemployment," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research, in: Kenneth G. Dau-Schmidt & Seth D. Harris & Orley Lobel (ed.), Labor and Employment Law and Economics, volume 2, pages 480-516 W.E. Upjohn Institute for Employment Research.
    16. Dave M. O'Neill, 1982. "Employment Tax Credit Programs: The Effects of Socioeconomic Targeting Provisions," Journal of Human Resources, University of Wisconsin Press, vol. 17(3), pages 449-459.
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