Are Jobs Available for Disadvantaged Workers in Urban Areas?

Harry Holzer and S. Danziger

Institute for Research on Poverty Discussion Papers from University of Wisconsin Institute for Research on Poverty

Abstract: We use data from surveys of employers and households in four metropolitan areas to predict the degree of job availability for various types of disadvantaged workers, such as minorities, high school dropouts, and welfare recipients. We conduct simulations in which we “match” workers to jobs on the basis of skill, spatial, and racial characteristics of each. Our results show that roughly 9 to 17 percent of actual or potential jobseekers are likely to have difficulty finding work, even in tight labor markets. Simulated mismatch rates for disadvantaged workers are considerably higher. We conclude that disadvantaged workers face quite limited job availability, at least in the short run. The wages and benefits for jobs available to these workers are also quite low.

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