The Labor Market and Young Black Men: Updating Moynihans Perspective

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The Labor Market and Young Black Men Updating
Moynihans Perspective

• Harry J. Holzer
• Georgetown University
• Urban Institute
• September 2007

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Introduction

• What This Paper Contains
• Review of Moynihans Perspective
• The Trends Since 1965
• What Explains These Trends?
• Conclusion and Policy Implications
• My View Moynihan was stunningly prescient. He
  got many things right, though he couldnt foresee
  a few major labor market trends. Policies need to
  address a broad range of opportunities and
  behavioral responses affecting employment of
  young men.

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Review of Moynihans Perspective

• Employment of Black Males Unconcealable
  Crisiswill become steadily more serious
• Unemployment and Labor Force Nonparticipation
• Falling Behind Black Females in Education,
  Occupational Status

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• Causes Lack of Training and Opportunity,
  Discrimination, Segregation
• Weak Skills, Alienation, Sense of Competence,
  Frustration Tolerance
• Fatherless Families Both Cause and Effect of
  Employment Situation

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The Trends Since 1965

• Steadily Worsening Employment and Labor Force
  Participation of Young Men Both Absolutely and
  Relative to Other Groups
• Falling Behind All Other Demographic Groups in
  Educational Attainment and Performance Far Above
  Others in Unwed Parenthood and Incarceration
  (NLSY97)
• Growing Up with Single Parent Strong Predictor
  of All of These Outcomes (NLSY97)

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What Explains These Trends?

• Demand-Side Factors
• Employer Skill Demands
• Discrimination
• Urban Segregation/Spatial Mismatch
• Deteriorating Networks and Contacts
• WEAKENING LABOR MARKET FOR LESS-EDUCATED YOUNG
  MEN in 1970s and 1980s

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Labor Demand Shifts and Labor Supply Response
LS
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Labor Supply Response

• Elastic Labor Supply Responsive to Incentives
• Declining Employment and Labor Force
  Participation
• Declining Attachment to Mainstream Institutions
  and Behaviors Schooling, Legal Activity,
  Marriage
• Crime Legal Labor Market Deteriorates, Illegal
  Market Booms Changing Incentives

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The 1990s and Beyond

• Further Deterioration in Employment despite
  Booming Economy, Advances for Black Women
• Why? 1) Ex-Offender Status 2) Child Support and
  Arrears

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Policy Implications

• Improving Education and Early Links to the Labor
  Market/Avoiding Disconnection
• Improving Incentives to Take Available Jobs
• Addressing Barriers and Disincentives for
  Ex-Offenders and Non-Custodial Fathers