ERIC Number: ED400452
Record Type: RIE
Publication Date: 1993-Sep
The Effects of Local Labor Demand on Individual Labor Market Outcomes for Different Demographic Groups and the Poor. Upjohn Institute Staff Working Paper 93-23.
Bartik, Timothy J.
A study was conducted using panel data on individuals (from the Panel Survey on Income Dynamics) to examine how local labor demand conditions affect the economic well-being of disadvantaged groups and the poor. The study assumed that growth in the metropolitan economy particularly helps disadvantaged individuals. A regression model using pooled time-series cross-section data was used, with the dependent variable in each case being the year-to-year change in some economic outcome for an individual, with a number of observations for each individuals. The data included observations from 1975-76 to 1986-87, with up to 2,252 males and 2,967 females in the samples. Independent variables include demographic characteristics of the individual, a set of variables measuring changes in local labor demand in the individual's metropolitan area, and interactions between these local labor demand variables and selected demographic variables. The study found that local labor demand conditions have disproportionate benefits for economically disadvantaged persons. Stronger local labor demand conditions can have important effects on poverty rates. For example, a 1 percent increase in an area's employment would reduce the numbers of poor females by around 5 percent and poor males by around 8 percent. The study suggests that publicly induced changes in labor demand, through public employment, wage subsidies for private employment, or enterprise zones, might significantly help disadvantaged persons. (Contains 21 references and 4 tables supporting the data.) (KC)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Science Foundation, Washington, DC.
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.