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Why Are Black Employers More Likely to Hire African Americans than White Employers?

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Author Info

  • Michael A. Stoll
  • Steven Raphael
  • Harry J. Holzer

Abstract

A consistent observation is that black employers tend to hire African Americans at greater rates than their white counterparts. This paper examines the reasons for this pattern using data from the 1992-94 Multi-City Employer Survey, which is a representative sample of firms in Atlanta, Boston, Detroit and Los Angeles. We use standard regression techniques and decomposition analysis and find that black employers are more likely to hire African Americans because they receive applications from blacks, and hire them out of the black applicant pool, at greater rates than white employers. Thus, to the extent that there is concern over the persistent unemployment difficulties of African Americans, having more blacks in positions with hiring authority within firms would help to alleviate this problem.

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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 228.

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Date of creation: 24 Jun 2001
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Handle: RePEc:wop:jopovw:228

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References

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  1. Harry J. Holzer & David Neumark, 2000. "What does affirmative action do?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 240-271, January.
  2. Steven Raphael & Michael A. Stoll, 2000. "Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps," JCPR Working Papers 200, Northwestern University/University of Chicago Joint Center for Poverty Research.
  3. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May.
  4. 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.
  5. Raphael, Steven & Stoll, Michael, 2000. "Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?," University of California Transportation Center, Working Papers qt4fq193gk, University of California Transportation Center.
  6. 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.
  7. William J. Carrington & Kristin McCue & Brooks Pierce, 2000. "Using Establishment Size to Measure the Impact of Title VII and Affirmative Action," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 503-523.
  8. 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.
  9. 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.
  10. Holzer, Harry J. & Reaser, Jess, 2000. "Black Applicants, Black Employees, and Urban Labor Market Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 365-387, November.
  11. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162.
  12. 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.
  13. 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.
  14. Stoll, Michael A., 1999. "Spatial Job Search, Spatial Mismatch, and the Employment and Wages of Racial and Ethnic Groups in Los Angeles," Journal of Urban Economics, Elsevier, vol. 46(1), pages 129-155, July.
  15. Harry J. Holzer, 1998. "Employer skill demands and labor market outcomes of blacks and women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 82-98, October.
  16. Timothy Bates, 1994. "Utilization of minority employees in small business: A comparison of nonminority and black-owned urban enterprises," The Review of Black Political Economy, Springer, vol. 23(1), pages 113-121, June.
  17. Marc Bendick & Charles Jackson & Victor Reinoso, 1994. "Measuring employment discrimination through controlled experiments," The Review of Black Political Economy, Springer, vol. 23(1), pages 25-48, June.
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