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Employer Demand for Welfare Recipients by Race

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  • Harry J. Holzer

    (Georgetown University)

  • Michael A. Stoll

    (University of California, Los Angeles)

Abstract

This article examines employer demand for welfare recipients using new employer survey data. The results suggest that demand is high but sensitive to business cycle conditions. Factors including skill needs and industry affect prospective employer demand for recipients, while other characteristics that affect their relative supply to employers (e.g., establishment location) influence whether such demand is realized in actual hiring. The conditional demand for black and Hispanic welfare recipients lags behind their representation in the welfare population and seems affected by employers' location and indicators of preferences. Thus, many demand-side factors limit the employment options of welfare recipients, especially minorities.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 21 (2003)
Issue (Month): 1 (January)
Pages: 210-241

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Handle: RePEc:ucp:jlabec:v:21:y:2003:i:1:p:210-241

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References

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  1. Harry J. Holzer, 1998. "Why Do Small Establishments Hire Fewer Blacks Than Large Ones?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 896-914.
  2. Robert F. Schoeni & Rebecca M. Blank, 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Working Papers 00-02, RAND Corporation Publications Department.
  3. O'Regan, Katherine M. & Quigley, John M., 1999. "Spacial Isolation and Welfare Recipients: What Do We Know?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt1mz642ft, Berkeley Program on Housing and Urban Policy.
  4. H. J. Holzer, . "Will Employers Hire Welfare Recipients? Recent Survey Evidence from Michigan," Institute for Research on Poverty Discussion Papers 1177-98, University of Wisconsin Institute for Research on Poverty.
  5. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination And Employment Outcomes For Minority Workers," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 835-867, August.
  6. Meyer, Bruce D. & Rosenbaum, Dan T., 2000. "Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1027-62, December.
  7. Harry J. Holzer, 1999. "Will employers hire welfare recipients? Recent survey evidence from Michigan," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(3), pages 449-472.
  8. Timothy J. Bartik & Randall W. Eberts, 199. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Book chapters authored by Upjohn Institute researchers, in: Sheldon H. Danziger (ed.), Economic Conditions and Welfare Reform, chapter 5, pages 119-157 W.E. Upjohn Institute for Employment Research.
  9. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, vol. 24(4), pages 135-143, June.
  10. Harry J. Holzer, 1990. "Job Vacancy Rates in the Firm: An Empirical Analysis," NBER Working Papers 3524, National Bureau of Economic Research, Inc.
  11. Abraham, Katharine G, 1986. "Structural/Frictional vs. Deficient Demand Unemployment: Reply," American Economic Review, American Economic Association, vol. 76(1), pages 273-76, March.
  12. M. A. Stoll & H. J. Holzer & K. R. Ihlanfeldt, . "Within Cities and Suburbs: Racial Residential Concentration and the Spatial Distribution of Employment Opportunities across Submetropolitan Areas," Institute for Research on Poverty Discussion Papers 1189-99, University of Wisconsin Institute for Research on Poverty.
  13. H. J. Holzer, . "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty.
  14. Harry J. Holzer & Keith R. Ihlanfeldt, 1996. "Spatial factors and the employment of blacks at the firm level," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 65-86.
  15. Bruce D. Meyer & Dan T. Rosenbaum, 1999. "Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects," JCPR Working Papers 152, Northwestern University/University of Chicago Joint Center for Poverty Research.
  16. H. J. Holzer & R. J. LaLonde, . "Job Change and Job Stability among Less-Skilled Young Workers," Institute for Research on Poverty Discussion Papers 1191-99, University of Wisconsin Institute for Research on Poverty.
  17. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
  18. Sandra K. Danziger & Mary Corcoran & Sheldon Danziger & Colleen M. Heflin & Ariel Kalil & Judith Levine & Daniel Rosen & Kristin S. Seefeldt & Kristine Siefert & Richard M. Tolman, 1999. "Barriers to the Employment of Welfare Recipients," JCPR Working Papers 90, Northwestern University/University of Chicago Joint Center for Poverty Research.
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Citations

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Cited by:
  1. Susan Gooden, 2004. "Examining the implementation of welfare reform by race: Do blacks, hispanics and whites report similar experiences with welfare agencies?," The Review of Black Political Economy, Springer, vol. 32(2), pages 27-53, December.
  2. Julie L. Hotchkiss & M. Melinda Pitts, 2007. "Evidence of demand factors in the determination of the labor market intermittency penalty," Working Paper 2007-16, Federal Reserve Bank of Atlanta.
  3. James P. Ziliak & David N. Figlio, 2000. "Geographic Differences in AFDC and Food Stamp Caseloads in the Welfare Reform Era," JCPR Working Papers 180, Northwestern University/University of Chicago Joint Center for Poverty Research.
  4. Heather Boushey, 2002. "Reworking the Wage Curve: Exploring the consistency of the model across time, space and demographic group," Review of Political Economy, Taylor & Francis Journals, vol. 14(3), pages 293-311.
  5. Becky Pettit & Stephanie Ewert, 2009. "Employment gains and wage declines: The erosion of black women’s relative wages since 1980," Demography, Springer, vol. 46(3), pages 469-492, August.
  6. Lewis, Dan & Konstantopoulos, Spyros & Altenbernd, Lisa, 2005. "The Correlates of Work in a Post-AFDC World: The Results from a Longitudinal State-Level Analysis," IZA Discussion Papers 1626, Institute for the Study of Labor (IZA).

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