The Declining Labor Market Prospects of Less-Educated Men

The Declining Labor Market Prospects of Less-Educated Men
Author: Ariel J. Binder
Publisher:
Total Pages: 47
Release: 2019
Genre: Labor market
ISBN:

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Over the last half century, U.S. wage growth stagnated, wage inequality rose, and the labor-force participation rate of prime-age men steadily declined. In this article, we examine these labor market trends, focusing on outcomes for males without a college education. Though wages and participation have fallen in tandem for this population, we argue that the canonical neo-classical framework, which postulates a labor demand curve shifting inward across a stable labor supply curve, does not reasonably explain the data. Alternatives we discuss include adjustment frictions associated with labor demand shocks and effects of the changing marriage market--that is, the fact that fewer less-educated men are forming their own stable families--on male labor supply incentives. Our observations lead us to be skeptical of attempts to attribute the secular decline in male labor-force participation to a series of separately-acting causal factors. We argue that the correct interpretation probably involves complicated feedback between falling labor demand and other factors which have disproportionately affected men without a college education.

What Employers Want

What Employers Want
Author: Harry J. Holzer
Publisher: Russell Sage Foundation
Total Pages: 193
Release: 1996-03-28
Genre: Business & Economics
ISBN: 1610442954

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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

The Effect of Labor Market Institutions on Salaried and Self-Employed Less-Educated Men in the 1980s

The Effect of Labor Market Institutions on Salaried and Self-Employed Less-Educated Men in the 1980s
Author: Harry A. Krashinsky
Publisher:
Total Pages: 0
Release: 2011
Genre:
ISBN:

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Less-educated workers exhibited negative real wage growth from the late 1970s to the early 1990s. Frequently cited to explain this pattern are such labor market trends as union decline and the falling real value of the minimum wage, but also of concern is the possible contribution of decreased demand, caused by factors such as skill-biased technological change. To investigate the relative importance of these determinants, the author, using CPS data, compares the experiences of wage-and-salary workers with those of the self-employed. Wages apparently declined little for less-educated self-em¬ployed workers, but greatly for similar wage-and-salary workers. Because self-employed workers are affected by the same demand shocks as wage-and-salary workers but are not subject to labor market institutions such as the minimum wage or labor unions, the author concludes that the main source of the observed negative real wage growth was the decline of labor market institutions, not skill-biased technological change.

A Future of Lousy Jobs?

A Future of Lousy Jobs?
Author: Gary Burtless
Publisher: Brookings Institution Press
Total Pages: 257
Release: 2010-12-01
Genre: Business & Economics
ISBN: 0815705182

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Politicians, journalists, and the public have expressed rising concern about the decline—or percieved decline—in middle-class jobs. The U.S. work force is viewed as increasingly divided between a prosperous minority that enjoys ever-rising wages and a less affluent majority that struggles harder each year to make ends meet. To determine whether and why this view of the job market is accurate, labor market economists anaylze trends in the distribution of jobs and wages over the past two decades and attempt to forecast the future course of American earnings inequality. McKinley L. Blackburn, David E. Bloom, and Richard B. Freeman assess the reasons behind the deterioration of earnings and job opportunities among less skilled men. They consider the impact of changes in industrial structure, declines in unionization, and trends in the level and quality of schooling for men who have limited skills and education. Gary Burtless examines the effect of the business cycle, within and across different regions of the United States, on earnings inequality and analyzes the effects of demographic change on inequality over the past twenty years. Rebecca M. Blank studies the rise of part-time employment and its impact on wages, fringe benefits, and the quality of jobs. Linda Dachter Loury focuses on the effect of the baby boom and baby bust on demand for schooling among new labor market entrants. If young entrants are discouraged from seeking college training by the high cost or low payoff of schooling, the long-term impact will be a gradual decline in the skills of the U.S. work force. Robert Mofitt analyzes the effect of welfare state programs on the growth of low-wage jobs, and the extent to which the welfare reforms of the eighties have affected low-income workers.

Who's Not Working and Why

Who's Not Working and Why
Author: Frederic L. Pryor
Publisher: Cambridge University Press
Total Pages: 318
Release: 1999
Genre: Business & Economics
ISBN: 9780521794398

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Presenting a radically different view of the operations of the labor market, in this 1999 book Professors Pryor and Schaffer explain the growing inequality in wages and how those with the least education are being squeezed out of the labor market. Why have wages in those jobs requiring extra-high cognitive skills risen while all other wages have stagnated or fallen? And why are more university graduates taking high-school jobs? The authors of this volume present data revealing that jobs which require a high educational level are increasing more slowly than those with somewhat lower requirements. However such jobs are increasing faster than those requiring still less formal education. Professors Pryor and Schaffer also show how women are replacing men in jobs which require higher levels of education and, moreover, how those with high cognitive skills are replacing those with lower cognitive skills.

Marriage, Fertility, and Labor Market Prospects in the United States, 1960-2000

Marriage, Fertility, and Labor Market Prospects in the United States, 1960-2000
Author: Yu-Chen Kuo
Publisher:
Total Pages:
Release: 2005
Genre:
ISBN:

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Over the past forty years a tremendous number of women have entered the labor market, removing stay-home motherhood as the most dominant female occupation. The linkage between the change in the labor market and change in family structure has drawn a lot of attention from social scientists, and it is on this linkage that this analysis is focused. An essential dimension of this changing behavior is the sharp rise in out-of wedlock childbearing. The central issue of non-married motherhood is more related to the diminishing willingness to marry than a changing attitude toward fertility. In a setting where individuals choose marriage because of the gains from joint production of child quality as well as the division of labor, the declining gains from specialization for men influence potential spouse selection. Men and women with fewer labor market prospects become less desirable, and consequently a marriage market with more positive assortative mating will be observed. The increase in female labor market participation is larger for highly-educated women but the decrease in marriage rates is more characteristic of less-educated women over this period. What drives these changes can be explained by using a simple economic theory, the fundamental concept of which is that couples with lower labor market prospects also face lower gains from marriage because of the increases in female male relative wages in the less-educated and black groups. A narrowing of the gap between male and female wages would reduce the gains from division of labor and lower the incentive to marry. In addition, when the marriage market becomes more positively assorted, low educated men and women are less likely to marry each other. Our empirical results indicate an increase in the homogeneity of wages between spouses over this period regardless of whether we control for education. In particular, black couples are more positively assorted than white couples although the trend converges by the end of the century. We also show that the marriage market is tilted towards better-educated men and women over the period. These findings are consistent with the theory which explains why single motherhood is more concentrated among less educated women.

The Economics of Women, Men, and Work

The Economics of Women, Men, and Work
Author: Francine D. Blau
Publisher:
Total Pages: 472
Release: 2002
Genre: Business & Economics
ISBN:

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For courses concerned with the economic status of women, economics of gender, and economics of the family, but also applicable to interdisciplinary women's studies courses, introductory-level courses in economic problems, and as a supplement to general labor economics courses. This text draws into a single, highly accessible volume the most current summary and synthesis of research and data from economics and other social sciences on women, men, and work in the labor market and household.

Improving Employment and Earnings in 21st Century Labor Markets

Improving Employment and Earnings in 21st Century Labor Markets
Author: Erica L. Groshen
Publisher:
Total Pages:
Release: 2019
Genre:
ISBN:

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What are the prospects for improving the lot of US workers in the 21st century? This introduction to the topic examines the most important US labor market trends of the late 20th and early 21st centuries, considers their causes and likely future trends; and then explores policies that might improve these outcomes. The most important broad labor market trends in recent decades have been: 1) Modest real wage growth; 2) Rising earnings inequality; and 3) Declining labor force participation, recently among both men and women, but especially among less-educated or African-American men and low-income youth over several decades. Key causes of these trends include labor demand and supply factors (such as automation, immigration, and limited college attainment); changing labor market institutions (such as declining unionism and stagnant federal wage/hours laws); rising alternative staffing arrangements, informal work and "fissuring"; and uneven labor market progress and policies affecting women, African-Americans and the young. After that review, we summarize what the papers in our volume tell us about the public policies that could help improve outcomes for US workers. The main message is that further deterioration in many US workers' lives in the 21st century likely requires public and employer policy changes to help to translate the forces at work into better outcomes for them.

When Labor's Lost

When Labor's Lost
Author: Courtney Coile
Publisher:
Total Pages: 31
Release: 2019
Genre: African American men
ISBN:

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The economic progress of U.S. men has stagnated in recent decades, with declining labor force participation and weak growth in real earnings, particularly for less educated and non-white men. In this paper, we illuminate the broader context in which prime-age men are experiencing economic stagnation. We explore changes for prime-age men over time in education, mortality, morbidity, disability program receipt, family structure, and incarceration rates, indicators that may be affected by men's sluggish economic progress or play a role in explaining it, or both. While establishing causality for such a wide range of health and other outcomes is inherently difficult, we discuss clues provided by recent research.

What Employers Want

What Employers Want
Author: Harry J. Holzer
Publisher: Russell Sage Foundation
Total Pages: 192
Release: 1999-02-25
Genre: Business & Economics
ISBN: 9780871543882

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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