Showing papers by "Harry J. Holzer published in 1999"

Assessing Affirmative Action

Abstract: Although the debate over Affirmative Action is both high-profile and high-intensity, neither side's position is based on a well-established set of research findings. Economics provides an extensive, well-known literature on which to draw regarding the existence and extent of labor market discrimination against women and minorities, although views may often conflict, and a less extensive but also well-known literature on the effects of Affirmative Action on the employment of women or minorities. However, research by economists provides much less evidence and even less of a consensus on the question of whether Affirmative Action improves or impedes efficiency or performance, which is perhaps the key economic issue in the debate over Affirmative Action. This review focuses on all of these issues regarding Affirmative Action, but the major focus is on the efficiency/performance question. All in all, the evidence suggests to us that it may be possible to generate Affirmative Action programs that entail relatively little sacrifice of efficiency. Most importantly, there is at this juncture very little compelling evidence of deleterious efficiency effects of Affirmative Action. This does not imply that such costs do not exist, nor that the studies we review have captured the overall welfare effects of Affirmative Action. It does imply, though, that the empirical case against Affirmative Action on the grounds of efficiency is weak at best.

Are Affirmative Action Hires Less Qualified? Evidence from Employer‐Employee Data on New Hires

Abstract: We use microlevel data on employers and employees from a sample of establishments in four major metropolitan areas in the United States to investigate whether Affirmative Action leads to the hiring of minority or female employees who are less qualified. Our measures of qualifications include the educational attainment of the workers hired and a variety of outcome measures related to worker performance on the job. We find evidence of lower educational qualifications among women and minorities hired under Affirmative Action. However, we do not find evidence of weaker job performance among most groups of minority and female Affirmative Action hires.

Job Change and Job Stability among Less-Skilled Young Workers

Abstract: In this paper we review evidence from previous studies of job and employment instability among less-educated young workers, and we provide some new evidence from the National Longitudinal Survey of Youth. Our results indicate that early employment instability contributes somewhat to the low levels of employment observed among high school dropouts, especially females. Important determinants of job stability include the cognitive skills of the workers themselves (as measured by math test scores); current or previous experience and job tenure; and a variety of job characteristics, including starting wages, occupation and industry. Job instability among female dropouts seems to be strongly related to fertility history and marital status. Some implications for policy, especially welfare reform, are discussed as well.

Will employers hire welfare recipients? Recent survey evidence from Michigan

Abstract: In this paper we present data from a survey of 900 employers in Michigan during 1997. The survey was designed to gauge employer demand for welfare recipients. The results show that, given the tightness of labor markets there, the prospective demand for recipients is quite high—employers report that 3 percent of all jobs currently, and almost 9 percent over the following year, might be available to unskilled recipients. On the other hand, prospective employment is quite highly correlated with measures of unmet labor demand, implying that much of it could disappear during the next recession. Many of the prospective jobs are also found in establishments to which innercity minorities might have limited access, such as small or suburban establishments that receive few black applicants or that recruit informally. Absenteeism and basic skill readiness are potential problems, based on jobs filled by recipients to date or those that are potentially available. The effects of a variety of potential policy responses targeted at private employers (such as job placement efforts and tax credits for employment or training) are considered as well. © 1999 by the Association for Public Policy Analysis and Management.

Employer Demand for Welfare Recipients and the Business Cycle: Evidence from Recent Employer Surveys

Abstract: In this paper I present evidence on the extent to which labor market tightness, and measured by job vacancy rates and other indicators of hiring difficulty, affect the willingness of establishments to hire welfare recipients. From these estimates, I infer the effects of the business cycle on the labor market demand for welfare recipients. The data are from a new survey of employers in Michigan. The results indicate that labor market tightness has a substantial effect on employer demand for welfare recipients. They also suggest that employer willingness to provide workplace amenities or supports to welfare recipients (such as child care, transportation assistance, training, etc.), and their receptiveness to policy interventions on behalf of recipients, are influenced by labor market tightness as well.

Assessing Affirmative Action

Abstract: Although the debate over Affirmative Action is both high-profile and high-intensity, neither side's position is based on a well-established set of research findings. Economics provides an extensive, well-known literature on which to draw regarding the existence and extent of labor market discrimination against women and minorities, although views may often conflict, and a less extensive but also well-known literature on the effects of Affirmative Action on the employment of women or minorities. However, research by economists provides much less evidence and even less of a consensus on the question of whether Affirmative Action improves or impedes efficiency or performance, which is perhaps the key economic issue in the debate over Affirmative Action. This review focuses on all of these issues regarding Affirmative Action, but the major focus is on the efficiency/performance question. All in all, the evidence suggests to us that it may be possible to generate Affirmative Action programs that entail relatively little sacrifice of efficiency. Most importantly, there is at this juncture very little compelling evidence of deleterious efficiency effects of Affirmative Action. This does not imply that such costs do not exist, nor that the studies we review have captured the overall welfare effects of Affirmative Action. It does imply, though, that the empirical case against Affirmative Action on the grounds of efficiency is weak at best.