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Racial Differences in Labor Market Transitions and the Great Recession

Author

Listed:
  • Couch, Kenneth A.

    () (University of Connecticut)

  • Fairlie, Robert W.

    () (University of California, Santa Cruz)

  • Xu, Huanan

    () (Indiana University)

Abstract

Labor force transitions are empirically examined using CPS data matched across months from 1996-2012 for Hispanics, African-Americans and whites. Transition probabilities are contrasted prior to the Great Recession and afterwards. Estimates indicate that minorities are more likely to be fired as business cycle conditions worsen. Estimates also show that minorities are usually more likely to be hired when business cycle conditions are weak. During the Great Recession, the odds of losing a job increased for minorities although cyclical sensitivity of the transition declined. Odds of becoming re-employed declined dramatically for blacks, by 2-4 percent, while the probability was unchanged for Hispanics.

Suggested Citation

  • Couch, Kenneth A. & Fairlie, Robert W. & Xu, Huanan, 2016. "Racial Differences in Labor Market Transitions and the Great Recession," IZA Discussion Papers 9761, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9761
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    References listed on IDEAS

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    2. Kim B. Clark & Lawrence H. Summers, 1981. "Demographic Differences in Cyclical Employment Variation," Journal of Human Resources, University of Wisconsin Press, vol. 16(1), pages 61-79.
    3. Kenneth Couch & Robert Fairlie, 2010. "Last hired, first fired? black-white unemployment and the business cycle," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 227-247, February.
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    More about this item

    Keywords

    unemployment; race; minorities; labor market; labor force; dynamics; Great Recession;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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