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Title: Employment and Earnings of Disadvantaged Young Men in a Labor Shortage Economy
Resulting in 1 citation.
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Freeman, Richard B. |
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Employment and Earnings of Disadvantaged Young Men in a Labor Shortage Economy NBER Working Paper No. 3444, National Bureau of Economic Research, 1990. Also: http://nber.nber.org/papers/W3444 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Education; Employment, Youth; Geographical Variation; Local Labor Market; Racial Differences; Residence; Unemployment, Youth This study contrasts the economic position of youths across local labor markets that differ in their rates of unemployment using the annual merged files of the Current Population Survey and the NLSY. The paper finds: (1) Local labor market shortages raise the employment-population rate and reduce the unemployment rate of disadvantaged youths by substantial amounts. (2) Shortages also raise the hourly earnings of disadvantaged youths. In the 1980s, the earnings gains for youths in tight labor markets offset the deterioration in the real and relative earnings of the less skilled that marked this decade. (3) Youths in labor shortage areas had greater increases in earnings as they aged than youths in other areas, implying that improved labor market conditions raise the longitudinal earnings profiles as well as the starting prospects of youths. These findings show that despite the social pathologies that plague disadvantaged youths, particularly less educated black youths, and the 1980s twist in the American labor market against the less skilled, tight labor markets still operated to substantially improve their economic position. |
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Bibliography Citation
Freeman, Richard B. "Employment and Earnings of Disadvantaged Young Men in a Labor Shortage Economy." NBER Working Paper No. 3444, National Bureau of Economic Research, 1990. |