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Employer Demand, AFDC Recipients, and Labor Market Policy

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  • H. J. Holzer

Abstract

This paper discusses the potential labor market prospects of AFDC recipients who will be required to work under the new welfare legislation. Various characteristics of available low-skill jobs are compared with those of long-term AFDC recipients, and more general evidence on the labor market experiences of welfare recipients is reviewed. From these data, the potential availability of employment and wage levels that recipients will face in the labor market is inferred. The data suggest that job availability for long-term recipients will be quite limited, especially in the short run; many will likely be plagued by lengthy durations of nonemployment, as well as high job turnover and low wages and benefits when they do work. The implications of these findings for labor market policy are then discussed.

Suggested Citation

  • H. J. Holzer, "undated". "Employer Demand, AFDC Recipients, and Labor Market Policy," Institute for Research on Poverty Discussion Papers 1115-96, University of Wisconsin Institute for Research on Poverty.
    • Handle: RePEc:wop:wispod:1115-96
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    Cited by:

    1. Duffy, Patricia A., 1997. "Is The New Deal Dead? Government, Economics, And The Rural South," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-15, July.
    2. Shao-Hsun Keng & Steven B. Garasky & Helen H. Jensen, 1999. "Innovation at the State Level: Initial Effects of Welfare Reform in Iowa," Center for Agricultural and Rural Development (CARD) Publications 99-wp232, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Timothy J. Bartik, 2002. "Instrumental Variable Estimates of the Labor Market Spillover Effects of Welfare Reform," Upjohn Working Papers 02-78, W.E. Upjohn Institute for Employment Research.
    4. Julia Lane & David Stevens, 2000. "Welfare-to-Work Policy: Employer Hiring and Retention of Former Welfare Recipients," JCPR Working Papers 19, Northwestern University/University of Chicago Joint Center for Poverty Research.

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