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Employer Demand for Welfare Recipients By Race

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  • Harry J. Holzer
  • Michael A. Stoll

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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Bibliographic 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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Web page: http://www.jcpr.org/wp/ByDate.html
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References

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  1. 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.
  2. H. J. Holzer & K. R. Ihlanfeldt, . "Spatial factors and the employment of blacks at the firm level," Institute for Research on Poverty Discussion Papers 1086-96, University of Wisconsin Institute for Research on Poverty.
  3. Harry J. Holzer, 1990. "Job Vacancy Rates in the Firm: An Empirical Analysis," NBER Working Papers 3524, National Bureau of Economic Research, Inc.
  4. Timothy J. Bartik & Randall W. Eberts, 1999. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," JCPR Working Papers 74, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers 1122-97, University of Wisconsin Institute for Research on Poverty.
  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.
  7. 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.
  8. 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.
  9. 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.
  10. Abraham, Katharine G, 1986. "Structural/Frictional vs. Deficient Demand Unemployment: Reply," American Economic Review, American Economic Association, vol. 76(1), pages 273-76, March.
  11. 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.
  12. 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.
  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. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
  15. 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.
  16. 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.
  17. 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.
  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. 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.
  2. 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.
  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.
  4. 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.
  5. 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.
  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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