Research Report Employers in the Boom
Subtitle
How Did the Hiring of Unskilled Workers Change During the 1990s?
Harry Holzer, Steven Raphael, Michael A. Stoll
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In this paper, we present evidence on how a wide range of employer attitudes and hiring behaviors with respect to unskilled workers changed over the decade of the 1990s. We use a unique source of data: a set of cross-sectional employer surveys administered over the period 1992-2001. We also try to disentangle the effects of labor market conditions from broader secular trends. The results indicate that employers became more willing to hire a range of disadvantaged workers during the boom, including minorities, workers with certain stigmas (such as welfare recipients), and those without recent experience or high school diplomas. The wages paid to newly hired unskilled workers also increased. On the other hand, employer demand for specific skill certification rose over time, as did their use of certain screens. The results suggest that the tight labor markets of the late 1990s, in conjunction with other secular changes, raised hiring costs and induced employers to shift toward screens that seemed relatively more cost-effective.
Research and Evidence Family and Financial Well-Being Work, Education, and Labor Tax and Income Supports Equity and Community Impact
Expertise Thriving Cities and Neighborhoods Social Safety Net Wealth and Financial Well-Being Labor Markets
Tags Workplace and industry studies Poverty Welfare and safety net programs Racial and ethnic disparities Wages and nonwage compensation Job opportunities Race, gender, class, and ethnicity Racial barriers to accessing the safety net