Employment and Earnings: A Case Study of Urban Detroit
This paper investigates the roles of manufacturing employment, neighborhood poverty, and family structure in determining wages among Detroit, MI workers, just prior to the current economic crisis. Employment in manufacturing has been crucial for blacks and whites: 39% of black and of white men in the Detroit metropolitan area worked in manufacturing in 2000. Regression analysis in this paper estimates employment in manufacturing raised wages 15.8% for all workers in the metropolitan area, 24.4% for blacks and 13.8% for whites. It finds a higher wage penalty (4.7%) for blacks in non-manufacturing industries than is found when manufacturing sector jobs are included (2.6%). Wage returns to education were greater in the non-manufacturing employment sector, especially for blacks. Residence in the poorest central city neighborhoods reduced wages significantly for white manufacturing and non-manufacturing workers. Its coefficient was insignificant for black workers. Gender and marital status effects on wages differed between blacks and whites in magnitude: White women suffered a larger penalty for their sex than black women (22.6 versus 9.6%) yet black men enjoyed a greater return to marriage than white men (27.5 versus 25.0%). Controlling for manufacturing reduced the gender wage gap and the returns to marriage for men. These findings suggest greater accessibility for women; and lower returns to marriage in non-manufacturing sectors. Among employed blacks access to manufacturing jobs has been their main source of decent wages. The adverse effects of the industry’s job loss in the 1980s and 1990s impacted all Detroit residents. Other high wage industries have employed relatively few blacks, have not paid them well; and have suffered job loss and slow growth over the period. Education could have raised wages for non-manufacturing workers, but not as much as access to manufacturing jobs. Today as in 2000, Detroit’s residents desperately need job creation or relocation to the central city; and job training and anti-discrimination policy enforcement throughout the metro-area. All of these would be necessary to offset job loss and reduce inequality and poverty in Detroit. The extent to which blacks will benefit from 2010–11 improvements in manufacturing employment in Detroit depends upon whether private companies and the state provide equal access to the jobs and the training new technologies require. Copyright Springer Science + Business Media, LLC 2012
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 39 (2012)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/12114|
More information through EDIRC
|Order Information:||Web: http://link.springer.de/orders.htm|
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.:
- Samuel L. Myers & Chanjin Chung & Lisa Saunders, 2001. "Racial Differences in Transportation Access to Employment in Chicago and Los Angeles, 1980 and 1990," American Economic Review, American Economic Association, vol. 91(2), pages 174-177, May.
- Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, vol. 43(1), pages 79-111, January.
- Raphael, Steven & Stoll, Michael, 2001.
"Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?,"
Berkeley Program on Housing and Urban Policy, Working Paper Series
qt4k4519pw, Berkeley Program on Housing and Urban Policy.
- 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.
When requesting a correction, please mention this item's handle: RePEc:spr:blkpoe:v:39:y:2012:i:1:p:107-119. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.