The Black-White Difference in Youth Employment: Evidence for Demand-Side Factors Cain, Glen G; Finnie, Ross E

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Cain, Glen G ; Finnie, Ross E
Blacks.; Reports, Evaluative.; Census Figures.
The 1980 Census of the United States is used, first, to illustrate the serious lag in employment performance of young black men relative to young white men and, second, to test for the importance of demand-side causes of this lag. Aggregate data for 94 standard metropolitan statistical areas (SMSAs) contain data on the annual hours worked in 1979 of black and white young men, along with other labor-market variables that reflect demand and supply forces. Disaggregate (or individual) data from the 1-in-100 Public Use sample contain personal information and hours worked for individuals. The individual records from young men in the 94 SMSAs are used with the SMSA market variables to check for the consistency of the effects of market variables on the employment of young black men with both types of data and with the two measures of labor supply. Main results are derived from the use of variation across SMSAs in the employment and wages of white youth as indicators of the demand conditions for black youth. It is estimated that feasible increases in these demand factors would lead to approximately a 25 percent increase in the employment of black youth. Eight tables present census figures. Two appendixes present definitions and supplemental information. (Author/SLD)
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