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Employer Demand for Welfare Recipients By Race

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Author Info
Harry J. Holzer
Michael A. Stoll

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Abstract

This paper examines the determinants of employer demand for welfare recipients using new survey data on employers in four large metropolitan areas. The results suggest a high level of demand for welfare recipients, though such demand appears fairly sensitive to business cycle conditions. A broad range of factors, including skill needs and industry, affect the prospective demand for welfare recipients among employers; while other characteristics that affect the relative supply of welfare recipients to these employers (such as spatial location and employer use of local agencies or welfare-to-work programs) influence the extent to which such demand is realized in actual hiring. Moreover, the conditional demand for black (and to a lesser extent Hispanic) welfare recipients lags behind their representation in the welfare population, and seems to be more heavily affected by employers' location and indicators of preferences than by their skill needs or overall hiring activity. Thus, a variety of factors on the demand side of the labor market continue to limit the employment options of welfare recipients, especially those that are minorities.
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Publisher Info
Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 197.

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Date of creation: 18 Jul 2000
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Handle: RePEc:wop:jopovw:197

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Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Timothy J. Bartik & Randall W. Eberts, 1999. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Staff Working Papers 99-54, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
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  2. 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. [Downloadable!]
    Other versions:
  3. Bruce D. Meyer & Dan T. Rosenbaum, 2000. "Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects," NBER Working Papers 7491, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. 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. [Downloadable!]
  5. Alan B. Krueger & Lawrence H. Summers, 1987. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
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  7. Katherine O'Regan & John Quigley, 2006. "Spacial Isolation and Welfare Recipients: What Do We Know?," Berkeley Program on Housing and Urban Policy, Working Paper Series 1008, Berkeley Program on Housing and Urban Policy. [Downloadable!]
  8. Holzer, Harry J, 1994. "Job Vacancy Rates in the Firm: An Empirical Analysis," Economica, London School of Economics and Political Science, vol. 61(241), pages 17-36, February. [Downloadable!] (restricted)
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  9. 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. [Downloadable!] (restricted)
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  10. 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.
  11. 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. [Downloadable!]
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  12. 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. [Downloadable!]
  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. [Downloadable!]
  14. 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. [Downloadable!] (restricted)
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Cited by:
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  1. 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. [Downloadable!]
  2. Dan Lewis & Spyros Konstantopoulos & Lisa Altenbernd, 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). [Downloadable!]
  3. 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. [Downloadable!] (restricted)
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