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Employer Demand for Welfare Recipients by Race

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  • H. J. Holzer
  • M. A. Stoll

Abstract

This paper uses new survey data on employers in four large metropolitan areas to examine the determinants of employer demand for welfare recipients. 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 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 who are minorities.

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Bibliographic Info

Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1213-00.

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Handle: RePEc:wop:wispod:1213-00

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References

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  1. 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.
  2. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
  3. 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.
  4. 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.
  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. Timothy J. Bartik & Randall W. Eberts, 1999. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Upjohn Working Papers and Journal Articles 99-54, W.E. Upjohn Institute for Employment Research.
  7. Michael A. Stoll & Harry J. Holzer & Keith R. Ihlanfeldt, 2000. "Within cities and suburbs: Racial residential concentration and the spatial distribution of employment opportunities across sub-metropolitan areas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 207-231.
  8. 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.
  9. Abraham, Katharine G, 1986. "Structural/Frictional vs. Deficient Demand Unemployment: Reply," American Economic Review, American Economic Association, vol. 76(1), pages 273-76, March.
  10. 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.
  11. 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.
  12. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
  13. 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.
  14. 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.
  15. 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.
  16. 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.
  17. 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.
  18. 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.
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Cited by:
  1. 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.
  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. 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).
  4. 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.
  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. 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.

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