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Why do small establishments hire fewer blacks than large ones

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  • H. J. Holzer

Abstract

This paper shows that small establishments are much less likely to hire and employ blacks than are larger establishments. A number of possible explanations for this result are considered, such as differences across establishments in application rates from blacks, skill needs, locations, and recruiting behavior. Although these factors can account for some of the differences between small and large employers, much remains unexplained. The results suggest that discrimination in hiring may be much more pervasive at smaller establishments than larger ones.

Suggested Citation

  • H. J. Holzer, "undated". "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.
  • Handle: RePEc:wop:wispod:1119-97
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    File URL: http://www.irp.wisc.edu/publications/dps/pdfs/dp111997.pdf
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    References listed on IDEAS

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    1. William J. Carrington & Kristin McCue & Brooks Pierce, 2000. "Using Establishment Size to Measure the Impact of Title VII and Affirmative Action," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 503-523.
    2. Bloch, Farrell, 1994. "Antidiscrimination Law and Minority Employment," University of Chicago Press Economics Books, University of Chicago Press, edition 0, number 9780226059839.
    3. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
    4. Garen, John E, 1985. "Worker Heterogeneity, Job Screening, and Firm Size," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 715-739, August.
    5. Bound, John & Holzer, Harry J, 1993. "Industrial Shifts, Skills Levels, and the Labor Market for White and Black Males," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 387-396, August.
    6. Holzer, Harry & Neumark, David, 1999. "Are Affirmative Action Hires Less Qualified? Evidence from Employer-Employee Data on New Hires," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 534-569, July.
    7. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-452, June.
    8. repec:bin:bpeajo:v:26:y:1994:i:1994-3:p:177-248 is not listed on IDEAS
    9. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(4), pages 135-143, June.
    10. Harry J. Holzer & Lawrence F. Katz & Alan B. Krueger, 1991. "Job Queues and Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 739-768.
    11. 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.
    12. Harry J. Holzer & Keith R. Ihlanfeldt, 1996. "Spatial factors and the employment of blacks at the firm level," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 65-86.
    13. Lisa M. Lynch & Sandra E. Black, 1995. "Beyond the Incidence of Training: Evidence from a National Employers Survey," NBER Working Papers 5231, National Bureau of Economic Research, Inc.
    14. Leonard, Jonathan S, 1985. "Affirmative Action as Earnings Redistribution: The Targeting of Compliance Reviews," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 363-384, July.
    15. Leonard, Jonathan S, 1990. "The Impact of Affirmative Action Regulation and Equal Employment Law on Black Employment," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 47-63, Fall.
    16. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, January.
    17. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    18. Barron, John M & Berger, Mark C & Black, Dan A, 1997. "Employer Search, Training, and Vacancy Duration," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 167-192, January.
    19. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    20. Smith, James P & Welch, Finis, 1984. "Affirmative Action and Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 2(2), pages 269-301, April.
    21. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 175-197.
    22. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
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    Citations

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    Cited by:

    1. Judith K. Hellerstein & David Neumark, 2008. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 459-477, August.
    2. repec:eme:rleczz:s0147-9121(2009)0000029011 is not listed on IDEAS
    3. Olivier Baguelin, 2005. "Understanding socio-demographic disparities in the labor market : the case for a motivation-based theory," Cahiers de la Maison des Sciences Economiques v05064, Université Panthéon-Sorbonne (Paris 1).
    4. Laura Giuliano & Michael R Ransom, 2013. "Manager Ethnicity and Employment Segregation," ILR Review, Cornell University, ILR School, vol. 66(2), pages 346-379, April.
    5. Harris Selod & Yves Zenou, 2006. "City Structure, Job Search and Labour Discrimination: Theory and Policy Implications," Economic Journal, Royal Economic Society, vol. 116(514), pages 1057-1087, October.
    6. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2011. "Neighbors and Coworkers: The Importance of Residential Labor Market Networks," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 659-695.
    7. Harry J. Holzer & Michael A. Stoll, 2003. "Employer Demand for Welfare Recipients by Race," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 210-241, January.
    8. Geert Demuijnck, 2009. "Non-Discrimination in Human Resources Management as a Moral Obligation," Journal of Business Ethics, Springer, vol. 88(1), pages 83-101, August.
    9. H. J. Holzer, "undated". "Employer Demand for Welfare Recipients and the Business Cycle: Evidence from Recent Employer Surveys," Institute for Research on Poverty Discussion Papers 1185-99, University of Wisconsin Institute for Research on Poverty.
    10. H. J. Holzer & S. Danziger, "undated". "Are Jobs Available for Disadvantaged Workers in Urban Areas?," Institute for Research on Poverty Discussion Papers 1157-98, University of Wisconsin Institute for Research on Poverty.
    11. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2001. "Why Are Black Employers More Likely to Hire African Americans than White Employers?," JCPR Working Papers 228, Northwestern University/University of Chicago Joint Center for Poverty Research.
    12. Harry J. Holzer & David Neumark, 2006. "Affirmative action: What do we know?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(2), pages 463-490.
    13. Zenou, Yves, 2007. "Why do Black Workers Search Less? A Transport-Mode Based Theory," CEPR Discussion Papers 6155, C.E.P.R. Discussion Papers.
    14. Pernilla Andersson Joona & Eskil Wadensjö, 2009. "The employees of native and immigrant self-employed," Research in Labor Economics,in: Ethnicity and Labor Market Outcomes, volume 29, pages 229-250 Emerald Publishing Ltd.

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