front cover of The Black Youth Employment Crisis
The Black Youth Employment Crisis
Edited by Richard B. Freeman and Harry J. Holzer
University of Chicago Press, 1986
In recent years, the earnings of young blacks have risen substantially relative to those of young whites, but their rates of joblessness have also risen to crisis levels. The papers in this volume, drawing on the results of a groundbreaking survey conducted by the National Bureau of Economic Research, analyze the history, causes, and features of this crisis. The findings they report and conclusions they reach revise accepted explanations of black youth unemployment.

The contributors identify primary determinants on both the demand and supply sides of the market and provide new information on important aspects of the problem, such as drug use, crime, economic incentives, and attitudes among the unemployed. Their studies reveal that, contrary to popular assumptions, no single factor is the predominant cause of black youth employment problems. They show, among other significant factors, that where female employment is high, black youth employment is low; that even in areas where there are many jobs, black youths get relatively few of them; that the perceived risks and rewards of crime affect decisions to work or to engage in illegal activity; and that churchgoing and aspirations affect the success of black youths in finding employment.

Altogether, these papers illuminate a broad range of economic and social factors which must be understood by policymakers before the black youth employment crisis can be successfully addressed.
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front cover of Detroit Divided
Detroit Divided
Reynolds Farley
Russell Sage Foundation, 2000
Unskilled workers once flocked to Detroit, attracted by manufacturing jobs paying union wages, but the passing of Detroit's manufacturing heyday has left many of those workers stranded. Manufacturing continues to employ high-skilled workers, and new work can be found in suburban service jobs, but the urban plants that used to employ legions of unskilled men are a thing of the past. The authors explain why white auto workers adjusted to these new conditions more easily than blacks. Taking advantage of better access to education and suburban home loans, white men migrated into skilled jobs on the city's outskirts, while blacks faced the twin barriers of higher skill demands and hostile suburban neighborhoods. Some blacks have prospered despite this racial divide: a black elite has emerged, and the shift in the city toward municipal and service jobs has allowed black women to approach parity of earnings with white women. But Detroit remains polarized racially, economically, and geographically to a degree seen in few other American cities. A Volume in the Multi-City Study of Urban Inequality
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front cover of Moving Up or Moving On
Moving Up or Moving On
Who Gets Ahead in the Low-Wage Labor Market?
Fredrik Andersson
Russell Sage Foundation, 2005
For over a decade, policy makers have emphasized work as the best means to escape poverty. However, millions of working Americans still fall below the poverty line. Though many of these "working poor" remain mired in poverty for long periods, some eventually climb their way up the earnings ladder. These success stories show that the low wage labor market is not necessarily a dead end, but little research to date has focused on how these upwardly mobile workers get ahead. In Moving Up or Moving On, Fredrik Andersson, Harry Holzer, and Julia Lane examine the characteristics of both employees and employers that lead to positive outcomes for workers. Using new Census data, Moving Up or Moving On follows a group of low earners over a nine-year period to analyze the behaviors and characteristics of individuals and employers that lead workers to successful career outcomes. The authors find that, in general, workers who "moved on" to different employers fared better than those who tried to "move up" within the same firm. While changing employers meant losing valuable job tenure and spending more time out of work than those who stayed put, workers who left their jobs in search of better opportunity elsewhere ended up with significantly higher earnings in the long term—in large part because they were able to find employers that paid better wages and offered more possibilities for promotion. Yet moving on to better jobs is difficult for many of the working poor because they lack access to good-paying firms. Andersson, Holzer, and Lane demonstrate that low-wage workers tend to live far from good paying employers, making an improved transportation infrastructure a vital component of any public policy to improve job prospects for the poor. Labor market intermediaries can also help improve access to good employers. The authors find that one such intermediary, temporary help agencies, improved long-term outcomes for low-wage earners by giving them exposure to better-paying firms and therefore the opportunity to obtain better jobs. Taken together, these findings suggest that public policy can best serve the working poor by expanding their access to good employers, assisting them with job training and placement, and helping them to prepare for careers that combine both mobility and job retention strategies. Moving Up or Moving On offers a compelling argument about how low-wage workers can achieve upward mobility, and how public policy can facilitate the process. Clearly written and based on an abundance of new data, this book provides concrete, practical answers to the large questions surrounding the low-wage labor market.
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RSF
The Russell Sage Foundation Journal of the Social Sciences: Improving Employment and Earnings in Twenty-First Century Labor Markets
Erica L. Groshen
Russell Sage Foundation, 2019
Modest real wage growth, rising wage inequality, and decreasing labor force participation among less-educated workers have been important labor market trends for several decades. Economists Erica Groshen and Harry Holzer, and a roster of labor market experts present new evidence on the prevalence, causes, and future of these challenges.

Contributors George Borjas and Richard Freeman analyze how the introduction of industrial robots and the influx of immigrants have affected jobs and earnings in the manufacturing industry. They find that the effects of robots are greater than those of immigrants in terms of depressing earnings and reducing employment, suggesting the need for policies that can help workers adjust to automation. Thomas Kochan and William Kimball note the lower density of unions and their declining impact on wages, even as surveys show strong worker preference for union representation and other forms of “voice” regarding wages, compensation, training, and other working conditions.

Informal work, which includes traditional activities like babysitting as well as newer ones like driving for an online platform, is an important means of helping families make ends meet. Katharine Abraham and Susan Houseman show that over a quarter of the workforce hold jobs aside from their main employment, and a higher share of less-educated, minority, low-income, and unemployed workers rely on informal work. Lawrence Katz and Alan Krueger show a modest upward trend in the share of the U.S. workforce in alternative work arrangements over the last twenty years; they also demonstrate that current survey tools miss many instances of multiple job holding.

David Weil demonstrates how the rise of “the fissured workplace”--where businesses outsource key facets of their operations to staffing agencies and other third-party entities--contributes to wage inequality. Contracted workers have lower earnings and fewer opportunities for upward mobility. The U.S. is the only industrialized country that does not provide paid leave for new parents, and low-income families with children spend 30 percent or more of their incomes on childcare expenses. Elizabeth Doran, Ann Bartel, and Jane Waldfogel propose a payroll tax to support family-friendly policies, such as paid leave and child care, as well as modest employer mandates for scheduling control and flexibility.

Editors Groshen and Holzer provide evidence-based policy recommendations that include greater support for public higher education; adjusting federal wage and hour laws as well as those governing labor relations; limiting the effects of past incarceration on workers; and stronger youth employment programs and policies. American workers face many challenges, but there are many policies analyzed in this issue of RSF that hold promise for improving employment and earnings for American workers.
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front cover of What Employers Want
What Employers Want
Job Prospects for Less-Educated Workers
Harry J. Holzer
Russell Sage Foundation, 1996
A very important contribution to the field of labor economics, and in particular to the understanding of the labor market forworkers with relatively low skill levels. I think we have the sense that the market looks bad, but haven't been clear on how bad it is, or how it got that way. What Employers Want provides some of the answers and identifies the important questions. It is essential reading. —Jeffrey S. Zax, University of Colorado at Boulder The substantial deterioration in employment and earnings among the nation's less-educated workers, especially minorities and younger males in the nation's big cities, has been tentatively ascribed to a variety of causes: an increase in required job skills, the movement of companies from the cities to the suburbs, and a rising unwillingness to hire minority job seekers. What Employers Want is the first book to replace conjecture about today's job market with first-hand information gleaned from employers about who gets hired. Drawn from asurvey of over 3,000 employers in four major metropolitan areas—Los Angeles, Boston, Atlanta, and Detroit—this volume provides a wealth of data on what jobs are available to the less-educated, in what industries, what skills they require, where they are located, what they pay, and how they are filled. The evidence points to a dramatic surge in suburban, white-collar jobs. The manufacturing industry—once a steady employer of blue-collar workers—has been eclipsed by the expanding retail trade and service industries, where the vast majority of jobs are in clerical, managerial, or sales positions. Since manufacturing establishments have been the most likely employers to move from the central cities to the suburbs, the shortage of jobs for low-skill urban workers is particularly acute. In the central cities, the problem is compounded and available jobs remain vacant because employers increasingly require greater cognitive and social skills as well as specific job-related experience. Holzer reveals the extent to which minorities are routinely excluded by employer recruitment and screening practices that rely heavily on testing, informal referrals, and stable work histories. The inaccessible location and discriminatory hiring patterns of suburban employers further limit the hiring of black males in particular, while earnings, especially for minority females, remain low. Proponents of welfare reform often assume that stricter work requirements and shorter eligibility periods will effectively channel welfare recipients toward steady employment and off federal subsidies. What Employers Want directly challenges this premise and demonstrates that only concerted efforts to close the gap between urban employers and inner city residents can produce healthy levels of employment in the nation's cities. Professor Holzer outlines the measures that will benecessary—targeted education and training programs, improved transportation and job placement, heightened enforcement of antidiscrimination laws, and aggressive job creation strategies. Repairing urban labor markets will not be easy. This book shows why. A Volume in the Multi-City Study of Urban Inequality
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front cover of Where Are All the Good Jobs Going?
Where Are All the Good Jobs Going?
What National and Local Job Quality and Dynamics Mean for U.S. Workers
Harry J. Holzer
Russell Sage Foundation, 2011
Deindustrialization in the United States has triggered record-setting joblessness in manufacturing centers from Detroit to Baltimore. At the same time, global competition and technological change have actually stimulated both new businesses and new jobs. The jury is still out, however, on how many of these positions represent a significant source of long-term job quality and security. Where Are All the Good Jobs Going? addresses the most pressing questions for today's workers: whether the U.S. labor market can still produce jobs with good pay and benefits for the majority of workers and whether these jobs can remain stable over time. What constitutes a "good" job, who gets them, and are they becoming more or less secure? Where Are All the Good Jobs Going? examines U.S. job quality and volatility from the perspectives of both workers and employers. The authors analyze the Longitudinal Employer Household Dynamics (LEHD) data compiled by the U.S. Census Bureau, and the book covers data for twelve states during twelve years, 1992–2003, resulting in an unprecedented examination of workers and firms in several industries over time. Counter to conventional wisdom, the authors find that good jobs are not disappearing, but their character and location have changed. The market produces fewer good jobs in manufacturing and more in professional services and finance. Not surprisingly, the best jobs with the highest pay still go to the most educated workers. The most vulnerable workers—older, low-income, and low-skilled—work in the most insecure environments where they can be easily downsized or displaced by a fickle labor market. A higher federal minimum wage and increased unionization can contribute to the creation of well paying jobs. So can economic strategies that help smaller metropolitan areas support new businesses. These efforts, however, must function in tandem with policies that prepare workers for available positions, such as improving general educational attainment and providing career education. Where Are All the Good Jobs Going? makes clear that future policies will need to address not only how to produce good jobs but how to produce good workers. This cohesive study takes the necessary first steps with a sensible approach to the needs of workers and the firms that hire them.
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