Another look at comparable worth’s impact on black women

In a 1986 article in theReview, Julianne Malveaux discussed the use of a comparable worth strategy for improving the economic position of black women (and men). In this response, the authors point out that some occupational channeling occurs prior to labor market entry and also suggest economic factors that could lead to reduced economic opportunity for some women as a result of the implementation of a comparable worth policy.     

Labor market racial discrimination against black women

Conclusion The data we have reviewed describe black women as having achieved parity with white women and indicate that this conclusion is not seriously affected after controlling for the direct and indirect effects of differences in time worked. However, the economic position of black women is not uniform throughout the economy. Black women have advanced primarily in public sector jobs and these advances have been made primarily by the youngest cohorts. Progress in the private sector has been much slower. Claims that a “new labor market” exists for black women ought to be carefully qualified, for their progress is impressive primarily when they are compared to white women—another disadvantaged group. Both groups of women are falling farther behind men in terms of relative earnings.16 Furthermore, it may be quite erroneous to interpret small differences in earnings between black and white women as evidence that black women do not suffer racial discrimination, as the following example illustrates.     

Trends in Job Quality for African-American Workers, 1979–2011

Economists expect that increases in education and work experience will increase workers’ productivity and translate into higher compensation. We use data from the March Current Population Survey (CPS) to show that over the past four decades, the “human capital” of the employed black workforce has increased enormously, yet the share of black workers in a “good job” --one that pays at least $19 per hour (in inflation-adjusted 2011 dollars), has employer-provided health insurance, and an employer-sponsored retirement plan-- has actually declined. The CPS data show that black women saw a modest increase in access to “good jobs,” but the share of black men in good jobs decreased. Despite improvements for black women, they were consistently less likely to be in a good job than black men in every year in our sample. Black workers at every age and education level were also less likely to be in a good job in 2011 than they were in 1979.     

Vacancies,unemployment, and black and white wage earnings: 1956–1983

Utilizing recent developments in the literature on vacancies and unemployment, the effects of changes in the vacancy to unemployment ratio on black and white wage earnings are examined. The primary result argues that black women’s wage earnings are less sensitive to changes in the national vacancy to unemployment ratios than white earnings. Another way of interpreting this result is that black women are not experiencing wage gains when new jobs are created. This finding suggests that black women may not experience increases in earnings if the vacancy to unemployment ratio increases in the future.     

Employment and Earnings: A Case Study of Urban Detroit

This paper investigates the roles of manufacturing employment, neighborhood poverty, and family structure in determining wages among Detroit, MI workers, just prior to the current economic crisis. Employment in manufacturing has been crucial for blacks and whites: 39% of black and of white men in the Detroit metropolitan area worked in manufacturing in 2000. Regression analysis in this paper estimates employment in manufacturing raised wages 15.8% for all workers in the metropolitan area, 24.4% for blacks and 13.8% for whites. It finds a higher wage penalty (4.7%) for blacks in non-manufacturing industries than is found when manufacturing sector jobs are included (2.6%). Wage returns to education were greater in the non-manufacturing employment sector, especially for blacks. Residence in the poorest central city neighborhoods reduced wages significantly for white manufacturing and non-manufacturing workers. Its coefficient was insignificant for black workers. Gender and marital status effects on wages differed between blacks and whites in magnitude: White women suffered a larger penalty for their sex than black women (22.6 versus 9.6%) yet black men enjoyed a greater return to marriage than white men (27.5 versus 25.0%). Controlling for manufacturing reduced the gender wage gap and the returns to marriage for men. These findings suggest greater accessibility for women; and lower returns to marriage in non-manufacturing sectors. Among employed blacks access to manufacturing jobs has been their main source of decent wages. The adverse effects of the industry??s job loss in the 1980s and 1990s impacted all Detroit residents. Other high wage industries have employed relatively few blacks, have not paid them well; and have suffered job loss and slow growth over the period. Education could have raised wages for non-manufacturing workers, but not as much as access to manufacturing jobs. Today as in 2000, Detroit??s residents desperately need job creation or relocation to the central city; and job training and anti-discrimination policy enforcement throughout the metro-area. All of these would be necessary to offset job loss and reduce inequality and poverty in Detroit. The extent to which blacks will benefit from 2010?C11 improvements in manufacturing employment in Detroit depends upon whether private companies and the state provide equal access to the jobs and the training new technologies require.     

Public policy and health-care delivery: A practitioner’s perspective

Primary health care for inner-city residents is generally provided in institutional settings. This article describes a successful alternate model for health-care delivery: privately owned, for-profit, fee-for-service ambulatory care facilities. The Paul Robeson Health Organization in Harlem is described as an example of such a facility. Most of PRHO’s patients are black; 55% are adult females. Some of the special health needs of inner-city women and the range of services available to them at PRHO are described. A conclusion of this article is that the economic and social benefits derived from a health delivery center like PRHO make this model one worth consideration for replication in other communities.     

Still Slipping: African-American Women in the Economy and in Society

This article focuses on the progress and regress of African-American women since the publication in 1986 of the author’s Slipping through the Cracks: The Status of Black Women. Gaps between African-American women and other groups (including African-American men and white women) are still reported in education, employment, income, health services, and incarceration. Some experts believe that racial equality has been achieved in the U.S., and affirmative action has slowed. However, the evidence demonstrates that disparity still exists, especially for African-American women at the bottom of income distribution. Their economic status lags behind white women’s. For example, according to the Insight Center for Community Economic Development, the average net worth of a single, middle-aged white woman is $42,600; the average net worth of a single, middle-aged Black woman is $5. This disparity affects not just the women but their children and their educational opportunities.     

The economic interests of black and white women: Are they similar?

Are the economic interests of black and white women similar? This article explores this question by reviewing data on the “feminization of poverty,” data on changes in the economic status of blacks, and differences in the occupational status of black and white women. The article reviews several policy questions, discusses ways in which the interests of black and white women differ in the policy arena, and concludes that although there are some similarities in the interests of black and white women, the racial interests of black women suggest that the interests of black and white women may frequently differ.     

Dual Job Holding and the Gig Economy: Allocation of Effort across Primary and Gig Jobs

This article explored motivations for allocating effort between “gig” and primary jobs using a sample of Amazon Mechanical Turk workers. We found that main job hour constraints, a commonly cited rationale for traditional moonlighting, were a motivation for men but not for women. Other factors affecting effort were also gender specific: Men were driven to spend more time on gig jobs to increase their incomes, while women were motivated by insecurity in their main job. Women, though not men, who were more depressed based on the Center for Epidemiologic Studies Depression scale earned less in their gig economy job. Finally, higher risk aversion reduced income from gig work for men, but not women. We concluded that motivations for effort allocated between the primary and gig jobs differ from those identified in past literature as important for traditional moonlighting decisions.     

Inequality in metropolitan industrial revenue bond programs

Industrial revenue bonds (IRBs) have become an increasingly popular, though expensive and controversial, tool of economic development at the state and local levels. That controversy has focused on the economic impact of IRBs: Whether or not they meet the intended goals of creating jobs and stabilizing the tax base of local communities, and whether the benefits are worth the costs. Though IRBs are often justified, at least in part, as a particularly useful program for older, urban, minority communities, little research has been done on the participation of racial minorities and women in IRB programs. This article examines Chicago’s IRB program and finds that minorities have not participated equitably. Racial minorities and women are underutilized in many firms receiving this form of publicly subsidized financial assistance, and minority-owned businesses receive a disproportionately small share of the loans. Policy recommendations are offered to assure equitable participation of racial minorities and women in IRB programs.     

Effects of community,family, and education on earnings of black and white men

Summary The primary purpose of this paper was to determine the effect of background on the education and earnings of black and white men.It was largely motivated by a desire to quantify the extent to which past discrimination against Blacks, resulting in lower achievement, inhibits the progress of individuals today in a somewhat more benign environment.It has demonstrated that both community and family background factors are important in determining the levels of education and earnings of black and white men.The community effects for Blacks operate largely through their moving into more integrated neighborhoods, so that many positive community externalities are apparently not available to families in predominantly black middle-class neighborhoods.While the effects of father’s education, city origin, and community income are comparable between Blacks and whites, white men’s education is more affected by number of siblings, family income, and age of 1968 head of household than is black men’s education.The relative sizes of the coefficients of these latter variables are consistent with steeper age-earnings profiles for older white men than older black men and higher prices paid for investing in children by black parents.     

Black Real Estate Professionals’ Perceptions of Career Opportunities: The Economic Detour Redux

This article focuses on black professionals’ perceptions of career opportunities in the real estate industry and discrimination in housing markets. The analysis is based on a national survey of black real estate professionals administered between July and December of 2009. Findings from the article suggest that black real estate professionals adopt a business strategy scholars have referred to as the economic detour. Following this strategy, their business activities focus on a niche market confined to residential real estate transaction with black clientele in relatively segregated neighborhood contexts. The findings from this analysis suggest that this focus has emerged in response to perceptions of institutional discrimination that closes opportunities to black professionals in the broader real estate industry. Recommendations are made to address economic barriers faced by black professionals.     

JTPA,black employment,and occupational change: Separating out cyclical changes from program changes

Evidence from Bridgeport, Connecticut’s Job Training and Partnership Act program is examined to determine if black employment and the occupational distribution of jobs held by blacks has been affected. Historical employment data is used to illustrate the cyclical nature of employment growth. It is concluded that the increases in black employment over the first nine months of the program are only partially the result of program. A second conclusion is that the occupational distribution of jobs in the program does not differ from the distribution of jobs of blacks not in the program. A third conclusion is that the program is underfunded.     

Strengthening institutional safety nets in South Africa: Sharing operation hunger's insights and experiences

Poverty and malnutrition are major problems in South Africa, especially among black people in rural areas. The poorest are heavily dependent on social pensions, remittances, low wages, piece jobs and, to a very small extent, household agriculture. Industrial safety nets are weak and do not necessarily help the vulnerable to overcome their poverty. This article draws on the experience of Operation Hunger, a South African NGO founded in 1980, to examine the impact of poverty‐alleviation programmes on the recipients. The article reviews the strategies employed by the government and NGOs to strengthen vulnerable households ‐food aid, public works and agricultural programmes ‐ drawing on Operation Hunger's experience in these areas. The article concludes that targeting, monitoring and evaluating, and piloting development programmes are crucial, and stresses the importance of NGOs in this regard.     

Black women and labor force participation: An analysis of sluggish growth rates

The labor force participation rate of black women has not increased as fast as that of white women in spite of the fact that black females have the characteristics economists have found most encourage participation. Also black women at all socioeconomic levels have more positive attitudes towards labor market activity. The explanation for the failure for their work rates to grow as fast as those of white women appears to be inadequate employment opportunities for black women from lower socioeconomic groups. Education in or of itself, however, is not the solution to the problem because education yields lower returns to black women with limited schooling than is true for comparable whites. Any strategy devised to solve these employment inequities must address the low relative demand for these workers.     

Beyond Anecdotes: A Quantitative Examination of Black Women in Academe

Using data from the Survey of Earned Doctorates, the Survey of Doctorate Recipients, and the Integrated Postsecondary Educational Data System Completion Survey by Race, this paper provides a quantitative analysis of black woman as they progress through the academy as students, faculty or administrators. This paper will detail the number of bachelor’s, master’s and doctoral degrees awarded to black woman, the colleges and universities that are successful at conferring said degrees, and the professional outcomes of black women employed in academe. We find that black women earn twice as many degrees as black men and that younger black female professors seem to face fewer barriers to success in the academy than their predecessors.     

Specification and estimation of the unemployment-vacancy curve in the period 1956–1979

Summary The aim of this article is to improve the specification of theUV curve to get satisfactory statistical results for the whole post war period up to 1979. This is done by including a dummy structure and the utilisation rate of production capacity. Results are presented for macro-data, data for men and women separately also at a regional level. Moreover, indicators were developed to represent some causes of the increase in unemployment due to market imperfections for the 1970–1979 period. These indicators were used as explanatory variables in a regression to explain the increase of unemployment due to market imperfections in the 1970–1979 period. Ministry of Economic Affairs (Directorate for General Ecomomic Policy The author is indebted to Professor S.K. Kuipers for his helpful remarks. This article has been written à titre personnel.     

Labour market inequality between men and women: Allocational differences versus wage rate differences

Summary This article discusses the question to what extent there are differences between men and women concerning the allocation of workers to jobs on the one hand and the remuneration for a given allocation on the other. Human capital variables do not only affect the allocation of men and women to job levels and job categories differently, they also have different effects on wage rates for men and women in given job levels and job categories. The wage gap between men and women partly stems from the fact that men and women have different personal characteristics, and partly from the different allocation of men and women to job levels and job categories. Besides, wage rate inequality stems from the different rewards for men and women with given characteristics. By decomposing the average wage rate difference between men and women it can be established that 40 percent of this difference can be attributed to differences concerning education, experience, and age; 28 percent to differences in the allocation of men and women to job levels and job categories, and 32 percent to higher rewards for men than for women with given characteristics.Economic Institute/Centre for Interdisciplinary Research on Labour Market and Distribution Issues (CIAV) Rijksuniversiteit Utrecht; Economic Institute/Centre for Interdisciplinary Research on Labour Market and Distribution Issues (CIAV), ijksuniversiteit Utrecht, and Netherlands Interdisciplinary Demographic Institute (NIDI), Den Haag. The authors wish to thank the Dutch Wage Bureau for making available the data, and Frank Kalshoven, Ingrid Plas and Yolanda Grift for their computational assistance.     

Prestige project developments: Economic renaissance or economic myth? A case study of Birmingham

This article examines the City of Birmingham's attempt to generate economic activity through the construction of “prestige projects” and the refurbishment of its Central Business District in the 1980s. Birmingham City Council's claims to have generated thousands of jobs and £2 billion of private sector investment from its prestige developments are examined and the distributional impacts of the “claimed” job creation totals are also detailed. The article concludes that the global investment and employment figures claimed have been exaggerated and many of the jobs directly generated have contributed to the growth of the secondary labour market in Birmingham.