Will Employers Hire Welfare Recipients? Recent Survey Evidence from Michigan

Harry Holzer

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

Abstract: In this paper we present data from a new survey of 900 employers in Michigan that was designed to gauge employer demand for welfare recipients. The results show that, given the current tightness of labor markets in Michigan, prospective demand for recipients is fairly high. On the other hand, prospective employment is quite highly correlated with measures of unmet labor demand at the establishment level, implying that much of this employment could disappear during the next recession. Many of the prospective jobs are also found in establishments to which inner-city minorities might have limited access, such as small/suburban establishments that receive few black applicants or that recruit informally. Absenteeism and basic skill readiness are potential problems for welfare recipients seeking employment, based on jobs filled by recipients to date or those that are prospectively available. The effects of a variety of potential policy responses targeted at private employers (such as job placement efforts, tax credits for employment or training, etc.) are also considered.

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Journal Article: Will employers hire welfare recipients? Recent survey evidence from Michigan (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wop:wispod:1177-98

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