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Employers in the Boom: How Did the Hiring of Less-Skilled Workers Change during the 1990s?

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

Abstract

Employers became more willing to hire a range of disadvantaged workers during the 1990s boom-including minorities, workers with certain stigmas (such as welfare recipients), and those without recent experience or high school diplomas. The wages paid to newly hired less-skilled workers also increased. On the other hand, employers' demand for specific skill certification rose over time, as did their use of certain screens. The results suggest that the tight labor markets of the late 1990s, in conjunction with other secular changes, raised hiring costs and induced employers to shift toward screens that seemed more cost-effective. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Harry J. Holzer & Steven Raphael & Michael A. Stoll, 2006. "Employers in the Boom: How Did the Hiring of Less-Skilled Workers Change during the 1990s?," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 283-299, May.
  • Handle: RePEc:tpr:restat:v:88:y:2006:i:2:p:283-299
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    Cited by:

    1. Fredrik Andersson & Harry J. Holzer & Julia Lane, 2009. "Temporary Help Agencies and the Advancement Prospects of Low Earners," NBER Chapters,in: Studies of Labor Market Intermediation, pages 373-398 National Bureau of Economic Research, Inc.
    2. Judith K. Hellerstein & David Neumark, 2011. "Employment in Black Urban Labor Markets: Problems and Solutions," NBER Working Papers 16986, National Bureau of Economic Research, Inc.
    3. Kenya L. Covington, 2015. "Poverty Suburbanization: Theoretical Insights and Empirical Analyses," Social Inclusion, Cogitatio Press, vol. 3(2), pages 71-90.
    4. Yellen, Janet L., 2016. "Macroeconomic Research After the Crisis : a speech at "The Elusive 'Great' Recovery: Causes and Implications for Future Business Cycle Dynamics" 60th annual economic conference sponsored by ," Speech 915, Board of Governors of the Federal Reserve System (U.S.).

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