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Will employers hire welfare recipients? Recent survey evidence from Michigan

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  • Harry J. Holzer

    (Michigan State University)

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.

Suggested Citation

  • Harry J. Holzer, 1999. "Will employers hire welfare recipients? Recent survey evidence from Michigan," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(3), pages 449-472.
    • Handle: RePEc:wly:jpamgt:v:18:y:1999:i:3:p:449-472
    DOI: 10.1002/(SICI)1520-6688(199922)18:3<449::AID-PAM8>3.0.CO;2-H
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    References listed on IDEAS

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    1. M. Gold & M. Sparer & K. Chu, "undated". "Medicaid Managed Care: Lessons from Five States," Mathematica Policy Research Reports c4727b78f1c54a739abe1e06c, Mathematica Policy Research.
    2. H. J. Holzer & S. Danziger, "undated". "Are Jobs Available for Disadvantaged Workers in Urban Areas?," Institute for Research on Poverty Discussion Papers 1157-98, University of Wisconsin Institute for Research on Poverty.
    3. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(4), pages 135-143, June.
    4. Abraham, Katharine G, 1986. "Structural/Frictional vs. Deficient Demand Unemployment: Reply," American Economic Review, American Economic Association, vol. 76(1), pages 273-276, March.
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    Cited by:

    1. Greg Owen & Ellen Shelton & Amy Bush Stevens & Justine Nelson-Christinedaughter & Corinna Roy & June Heineman, 2000. "Whose Job Is It? Employers' Views on Welfare Reform," JCPR Working Papers 184, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. H. J. Holzer & R. J. LaLonde, "undated". "Job Change and Job Stability among Less-Skilled Young Workers," Institute for Research on Poverty Discussion Papers 1191-99, University of Wisconsin Institute for Research on Poverty.
    3. Karen Chapple, 2002. "“I Name it and I Claim it—In the Name of Jesus, this Job is Mine†: Job Search, Networks, and Careers for Low-Income Women," Economic Development Quarterly, , vol. 16(4), pages 294-313, November.
    4. Harry J. Holzer & Michael A. Stoll, 2003. "Employer Demand for Welfare Recipients by Race," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 210-241, January.
    5. Sandra K. Danziger & Mary Corcoran & Sheldon Danziger & Colleen M. Heflin & Ariel Kalil & Judith Levine & Daniel Rosen & Kristin S. Seefeldt & Kristine Siefert & Richard M. Tolman, 1999. "Barriers to the Employment of Welfare Recipients," JCPR Working Papers 90, Northwestern University/University of Chicago Joint Center for Poverty Research.
    6. H. J. Holzer, "undated". "Employer Demand for Welfare Recipients and the Business Cycle: Evidence from Recent Employer Surveys," Institute for Research on Poverty Discussion Papers 1185-99, University of Wisconsin Institute for Research on Poverty.
    7. S. Danziger & M. Corcoran & S. Danziger & C. Heflin & A. Kalil & J. Levine & D. Rosen & K. Seefeldt & K. Siefert & R. Tolman, "undated". "Barriers to the Employment of Welfare Recipients," Institute for Research on Poverty Discussion Papers 1193-99, University of Wisconsin Institute for Research on Poverty.
    8. Olugbenga Ajilore, 2012. "Did the Work Opportunity Tax Credit Cause Subsidized Worker Substitution?," Economic Development Quarterly, , vol. 26(3), pages 231-237, August.
    9. Amanda Pallais & Emily Glassberg Sands, 2015. "Why the Referential Treatment: Evidence from Field Experiments on Referrals," NBER Working Papers 21357, National Bureau of Economic Research, Inc.
    10. Lesley J. Turner & Sheldon Danziger & Kristin S. Seefeldt, 2006. "Failing the Transition from Welfare to Work: Women Chronically Disconnected from Employment and Cash Welfare," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 227-249, June.
    11. Nik Theodore & Rachel Weber, 2001. "Changing Work Organization in Small Manufacturers: Challenges for Economic Development," Economic Development Quarterly, , vol. 15(4), pages 367-379, November.

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