UNDEREMPLOYMENT AND RACIAL COMPETITION IN LOCAL LABOR MARKETS

The primary concern in this paper is to analyze the effects of black population concentration on black and white men's relative and absolute underemployment levels in labor market areas while controlling for the degree of occupational segregation by race. We draw hypotheses from two primary bodies of research; one literature focuses on general racial competition and the other considers competition to be more limited. Our findings that racial inequality in underemployment levels increases with blacks' population share are most consistent with the general competition model. However, we also find some support for the limited competition model which holds that not all whites benefit from increased competition with blacks. Finally, we find that occupational segregation helps to determine the form that racial discrimination in employment adequacy takes. Where occupational segregation is high, black men hold relatively more low-wage jobs, but where occupational segregation is low, they experience higher levels of unemployment and more disadvantage relative to whites.     

The nation's youth: an employment perspective

Statistics on youth employment problems are quite revealing—they accounted for almost one fourth of the unemployed eventhough they constituted only one-tenth of the nation's labor force in 1977. Youth unemployment is universally high, but variations by area of residence are evident and can be useful in analyzing their job market problems. To this end, data on the labor force characteristic of the nation's 16.5 million young people in three geographic areas—central cities, suburbs, and nonmetropolitan areas were examined. This investigation utilizes metropolitan and nonmetropolitan area data gathered monthly through a sample survey of some 47,000 households throughout the nation during 1977. Further, the labor market experience of both whites and blacks, and males and females are compared.     

MOBILIZING SOCIAL RESOURCES: Race, Ethnic, and Gender Differences in Social Capital and Persisting Wage Inequalities

Drawing on a social capital theoretical framework, I examine race, ethnic, and gender wage inequalities. Specifically, I extend past research by analyzing differences in the mobilization of different types of job contacts, what these types of contacts and their level of influence "buy" job seekers in the labor market, and the extent to which differences in social resources explain between-group variations in wages. Four aspects of job contacts are implicated: the race and gender of the job contact, the strength of the relationship between the job seeker and the job contact, and the job contact's influence. Employing the Multi-City Study of Urban Inequality, I find that white men are more likely to mobilize weak, white, male, and influential contacts, those contacts hypothesized to positively impact employment outcomes. Moreover, their greater mobilization of male and influential ties helps to explain a substantial part of their wage advantage over white women and Lations. However, in many ways, their overall social resource advantage seems somewhat overstated. They reap no advantages over blacks, Latinos, and white women in their use of weak and white ties. Furthermore, results indicate that the benefits of social resources appear largely contingent on the social structural location of job seekers mobilizing them, less on any benefits inherent in different "types" of job contacts.     

SOURCES OF EARNINGS INEQUALITY IN THE BLACK AND WHITE FEMALE LABOR FORCES

Earnings inequality trends and their sources from 1975 to 1986 are evaluated for two historically subordinate working groups—black and white women—using Current Population Survey data. The dual nature of women's employment, improved earnings opportunities, and continuing segregation into low-paying positions create conditions under which earnings inequality in these two groups is expected to increase. Two sources of changing inequality levels are examined to determine which better explains inequality trends: the redistribution of women across labor market positions, which should have occurred due to industrial restructuring; and changes in the rates of earnings returns to labor market positions. For both groups, changes in returns better explain positive inequality trends in the 1980s, although black women's earnings are somewhat more influenced than whites' by their redistribution across labor market positions.     

Local Labor Market Characteristics and the Occupational Concentration of Different Sociodemographic Groups1

Abstract This paper analyzes the extent to which employment opportunities for different sociodemographic groups are concentrated in a limited number of occupations within their local labor market areas. Data from the STF-4 file of the 1980 Census of Population and Housing are used to measure the occupational concentration of these groups in 318 labor market areas (LMAs) in the United States. Regression analysis demonstrates the significance of local labor market characteristics for the occupational concentration of women and men and of whites and blacks. Gender differences in occupational concentration are strongly related to the differential effects of the industrial composition of the local labor market. Racial differences in occupational concentration are affected by the fact that working in larger, more densely populated LMAs is more significant for blacks than for whites.     

CAUSES AND CONSEQUENCES OF LAYOFFS

Using probit analysis, this article finds that differential treatment accounts for a substantial portion of the higher layoff rates of blacks in comparison to whites. However, women are found to be considerably less prone to layoffs than men with similar characteristics. Among those who obtained subsequent employment (taking into account the possible selectivity bias in such a subsample), white males are hurt more by layoffs than black males in terms of both short-term and long-term earnings growth; women's earnings are not necessarily affected by layoff at all. However, whites and males are found to be more likely to be reemployed than blacks and females, respectively.     

THE COLOR OF THE UNDERGRADUATE EXPERIENCE AND THE OCCUPATIONAL ATTAINMENT OF BLACKS AND WHITES: Evidence from Longitudinal Data

This study examines the impact of attendance at colleges with higher black enrollment on occupational attainment. The unique multipopulation LISREL models focus on blacks and whites, specify income and occupational self-direction as distinct dimensions of labor market accomplishment, and adjust for the possible confounding influence of college selectivity and precollege self-appraisals. Data from the NLS-72, augmented by selectivity and black enrollment data from other sources, are utilized. Findings largely support the hypothesis of within-race parity in occupational attainment. Black enrollment exerts nonsignificant effects on income among blacks and occupational self-direction in both races and slightly enhances income among whites.     

The Effects of Race and Family Structure on Women's Spatial Relationship to the Labor Market

This study examines the intersection of race, family structure, and economic inequality through women's spatial relationships to the labor market. Using survey data from three major metro labor markets, we operationalize spatial relationships in two ways: first, using a conventional measure of commute time, and second, using an indicator of neighborhood job contacts to obtain employment. Results indicate that family structure exerts no direct effect on women's spatial relationship to the labor market. Race, by contrast, plays a strong role, mediating women's reliance on mass transit, their response to teenage kids in the household, and their likelihood of using neighbors to find employment. The result is a situation in which black and Latina women are more likely than white women to rely on localized job networks to obtain employment that requires longer commutes from home.     

General assistance among U.S. cities: A test of alternative hypotheses

Using 1980 census data, this study seeks to explain variations in race‐specific measures of general assistance among 109 U.S. cities. Four hypotheses (derived from developmental, conflict, and human ecological theories) are developed as potential explanations of welfare recipiency rates and payment levels. Three control variables (southness, population size, and education) are included in the analysis. Ordinary least squares (OLS) regression analysis reveals that for blacks, poverty, level of manufacturing employment (1970–1980), and southness are significant predictors of recipiency rates; whereas per capita revenue, segregation, southness, and population size are significant predictors of mean payment. For whites, poverty, percent white, and southness are significant predictors of welfare rates; whereas per capita revenue, percent white, segregation, and southness are significant predictors of mean payment. The analysis provides partial support for the need hypothesis in explaining General Assistance recipiency with respect to both races. It also provides moderate support for the segregation hypothesis and weak support for the functional transformation hypothesis in explaining General Assistance recipiency for blacks.     

EMPLOYMENT AND DEADWEIGHT LOSS EFFECTS OF OBSERVED NONWAGE LABOR COSTS

To assess the employment effects of labor costs, it is crucial to have reliable estimates of the labor cost elasticity of labor demand. Using a matched firm‐worker data set, we estimate a long‐run unconditional labor demand function, exploiting information on workers to correct for endogeneity in the determination of wages. We evaluate the employment and deadweight loss effects of observed employers' contributions imposed by labor laws (health insurance, training, and taxes) as well as of observed workers' deductions (social security and income tax). We find that nonwage labor costs reduce employment by 17% for white collars and by 53% for blue collars, with associated deadweight losses of 10% and 35% of total contributions, respectively. Since most firms undercomply with mandated employers' and workers' contributions, we find that full compliance would imply employment losses of 4% for white collars and 12% for blue collars, with respective associated deadweight losses of 2% and 6%. (JEL J23, J32)     

The Effect of Private Sector Work Opportunities in Prison on Labor Market Outcomes of the Formerly Incarcerated

This paper examines the effects of a private-sector prison work program called the Prison Industry Enhancement Certification Program (PIECP) on formal unemployment duration, duration of formal employment, and earnings of men and women released from various state prisons between 1996 and 2001. It also investigates the labor market dynamics of formerly incarcerated men and women. The program is found to increase reported earnings and formal employment on the extensive margin, with a stronger impact on the formal employment of women. There is little evidence that it increases formal employment along the intensive margin (i.e., duration of formal employment). Contrary to segmented labor market theories, superior employment (i.e., higher-paying jobs) does not lead to increased job stability. Roughly 92 % of individuals who obtained formal employment in the sample experienced job loss; however, reincarceration rates are too low to explain this fact. An evaluation of labor market dynamics reveals that traditional human capital variables, criminogenic factors, and a few demographic characteristics determine job loss. In addition, black women, single women, and women with more extensive criminal histories face greater barriers in the labor market than their male counterparts.     

NEIGHBORHOOD IMMIGRATION AND NATIVE OUT-MIGRATION

This study combines data from the Panel Study of Income Dynamics with data from four censuses to examine the effects of foreign-born populations in the immediate neighborhood of residence and surrounding neighborhoods on the residential mobility decisions of native-born black and white householders. We find that the likelihood of out-mobility for native householders is significantly and positively associated with the relative size of, and increases in, the immigrant population in the neighborhood. Consistent with theoretical arguments related to the distance dependence of mobility, large concentrations of immigrants in surrounding areas reduce native out-mobility, presumably by reducing the attractiveness of the most likely mobility destinations. A sizable share of local immigration effects can be explained by the mobility-related characteristics of native-born individuals living in immigrant-populated areas, but the racial composition of the neighborhood (for native whites) and local housing market conditions (for native blacks) also are important mediating factors. The implications of these patterns for processes of neighborhood change and broader patterns of residential segregation are discussed.     

Group Images and Possible Selves Among Adolescents: Linking Stereotypes to Expectations by Race and Ethnicity

The study is motivated by the differential alignment of educational achievement and aspirations along race and ethnic lines. Specifically, black and Hispanic students have comparable educational aspirations relative towhites, yet earn much lower grades and test scores. On the other hand, compared to white students, Asian youth overperform in their grades and test scores given their aspirations. Focus groups and interviews of high school students reveal prevalent stereotypes that link ethnic group membership to academic ability as well as other skills. Specifically, Asian youth are believed to be especially gifted in their academic abilities, while blacks are seen as less successful in academic endeavors. Stereotypes about Hispanics focused less on their academic performance and more on their occupational concentration in manual labor. These images form the reference point for the construction of success among ethnic youth; specifically, blacks speak of academic goals in terms of avoiding failure, Hispanic youth aim primarily to avoid factory or manual labor, and Asians focus on keeping up with high expectations of their academic pursuits. Hence, I argue that adolescents define their goals primarily in terms of the stereotypical images attached to their ethnic group. Specifically, minority youth focused on avoiding failure defined by prevalent group stereotypes. Moreover, these images maintain racially and ethnically segregated extracurricular activities that reinforce segregated peer groups. Finally, socialization with same-race peers promote comparable conceptions of success within racial groups.     

“Every Place Has a Ghetto…”: The Significance of Whites' Social and Residential Segregation

The residential and social segregation of whites from blacks creates a socialization process we refer to as “white habitus.” This white habitus limits whites' chances for developing meaningful relationships with blacks and other minorities spatially and psychologically. Using data from the 1997 Survey of College Students' Social Attitudes and the 1998 Detroit Area Study, we show that the spatial segregation experienced by whites from blacks fosters segregated lifestyles and leads them to develop positive views about themselves and negative views about blacks. First, we document the high levels of whites' residential and social segregation. Next, we examine how whites interpret their own self‐segregation. Finally, we examine how whites' segregation shapes their racial expressions, attitudes, cognitions, and even their sense of aesthetics as illustrated by their views on the subject of interracial marriage.     

QUALITY OF AVAILABLE MATES,EDUCATION, AND HOUSEHOLD LABOR SUPPLY

We investigate the impact of sex ratios by education and metropolitan area on spouses’ bargaining power and labor supplies, to capture the local and qualitative nature of mate availability. Using Current Population Survey and Census data for 2000, 1990, and 1980, we estimate these effects in a collective household framework. We find that a higher relative shortage of comparably educated women in the couple’s metropolitan area reduces wives’ labor supply and increases their husbands’. The impact is stronger for couples in higher education groups but not significant for high school graduates. Results are similar across decades. No such effects are found for unmarried individuals. (JEL D1, J22)     

A COMPARATIVE PERSPECTIVE ON RACIAL RESIDENTIAL SEGREGATION:

This article takes a first step to compare the residential segregation of blacks and Asians from whites in American and Canadian cities. The analysis is based on census data from 404 American and 41 Canadian cities. African Americans in the United States experience a higher level of residential segregation than Asians in U.S. cities. On the other hand, blacks in Canada experience the same low level of segregation as Asians. To explain the different experiences of blacks in the United States and Canada, a multivariate model is proposed and tested. The results reveal several patterns. First, African Americans are consistently obstructed much more than Asian Americans by their proportion in the city. In contrast blacks in Canada are not. Second, the residential segregation patterns of African Americans are affected strongly by the labor market and strucutral changes of the economy in the city. However, the structural change of the economy in the city has a very weak effect on the level of residential segregation of Asian Americans, black Canadians, and Asian Canadians.     

SOURCES OF ORGANIZATIONAL COMMITMENT: THE EFFECTS OF INTERNAL LABOR MARKETS AND WORKER VALUES

Data from the 1991 General Social Survey and National Organizations Survey are used to assess how organizational commitment is structured by one “demand side,” organizational-based factor, firm internal labor markets, and one “supply side,” individual-based factor, the values/preferences of workers. Findings indicate that organizational commitment is best explained by the joint influence of these two factors rather than by their independent effects. Specifically, firms with internal labor markets are conducive to the development of high levels of organizational commitment to the extent that what they offer, namely, opportunities for career-status and long-term employment “fit” what workers desire: job security and possibilities for promotion with their current employer. We offer directions for future research that may shed additional light on the manner in which internal labor markets and the values/preferences of workers may structure organizational commitment.     

Racial Segregation,the Concentration of Disadvantage,and Black and White Homicide Victimization

Discriminatory housing market practices have created and reinforced patterns of racial residential segregation throughout the United States. Such segregation has racist consequences too. Residential segregation increases the concentration of disadvantage for blacks but not whites, creating African-American residential environments that heighten social problems including violence within the black population. At the same time, segregation protects white residential environments from these dire consequences. This hypothesized racially inequitable process is tested for one important type of violence—homicide. We examine race-specific models of lethal violence that distinguish residential segregation from the concentration of disadvantage within racial groups. Data are from the Censuses of Population and Federal Bureau of Investigation's homicide incidence files for U.S. large central cities for 1980 and 1990. Our perspective finds support in the empirical analyses. Segregation has an important effect on black but not white killings, with the impact of segregation on African-American homicides explained by concentrated disadvantage.     

Nationality and Income Attainment among Native and Immigrant Hispanic Men in the United States*

This study examines earnings inequality between Hispanic-origin men and non-Hispanic white men (referred to as white) using the 1976 Survey of Income and Education. Results show that human capital and labor supply variables have more impact on Hispanic earnings than labor market characteristics. Post-school job experience and weeks worked conform most consistently to the predictions of micro-economic labor theory. Formal schooling, while positively related to earnings, does not uniformly influence job rewards among Hispanic-origin groups. Ecological variables (social and economic organization) of the labor market have less impact on earnings. There is some evidence that whites benefit from the presence of large concentrations of minority workers, while two Hispanic groups—native Mexican and other Spanish men—are negatively affected by high concentrations of Hispanic workers. A composition analysis shows that from 10 to 50 percent of the earnings gap between Hispanic and white men may be attributable to discrimination.     

Has the Youth Labor Market in Japan Changed? An Event History Analysis Approach

Abstract: This paper examines whether the Japanese youth labor market has become more unstable, particularly since the 1990s. To address this problem, I suggest that we consider the transition rate of job exit to be the benchmark of instability in the labor market and focus on workers' career histories until they reach the age of 34 years. This paper presents six hypotheses that explain the instability of the youth labor market as follows: the total increase in the job-exit transition rate, the higher risk of job exit for provisional workers, the increase in the number of provisional workers, the increasing transition rate for provisional workers and stable regular workers, the impact of firm size, and the impact of the collapse of the bubble economy. I present the summary statistics of job exit rates and the results of the Cox partial likelihood estimation models. A conspicuous phenomenon of the 1990s entailed an increasing number of provisional workers who ran a higher risk of job exits compared to regular workers. However, the job exit transition rates are generally stable. Moreover, the transition rates for regular female workers have decreased since the 1980s due to the increasing realization of gender equality in society. Although partial likelihood estimation states that firm size and the type of officer concerned (public/private) had significant effects on the transition rates, their effect did not intensify after the collapse of the bubble economy. In sum, the evidence that the Japanese youth labor market changed in the 1990s is limited.