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LAST HIRED, FIRST FIRED? BLACK-WHITE UNEMPLOYMENT AND THE BUSINESS CYCLE

Demography, 2010-02, Vol.47 (1), p.227-247 [Peer Reviewed Journal]

Copyrighted the Population Association of America ;Copyright © 2010 Population Association of America. ;Population Association of America 2010 ;Copyright Population Association of America Feb 2010 ;Copyright © 2010 Population Association of America 2010 ;ISSN: 0070-3370 ;EISSN: 1533-7790 ;DOI: 10.1353/dem.0.0086 ;PMID: 20355692 ;CODEN: DMGYAH

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Title:
LAST HIRED, FIRST FIRED? BLACK-WHITE UNEMPLOYMENT AND THE BUSINESS CYCLE
Author: COUCH, KENNETH A. ; FAIRLIE, ROBERT
Subjects: Adult ; African Americans ; Black or African American - statistics & numerical data ; Black people ; Black white relations ; Business Cycles ; Business management ; Business studies ; Demographic research ; Demographics ; Demography ; Economic conditions ; Economic Crises ; Economic fluctuations ; Economic growth ; Economic Recession ; Employment ; Employment statistics ; Employment termination ; Ethnicity ; Firings ; Geography ; Hiring ; Humans ; Labor market ; Labor markets ; Male ; Medicine/Public Health ; Middle Aged ; Personnel Downsizing - economics ; Personnel Downsizing - statistics & numerical data ; Personnel management ; Personnel Selection - economics ; Personnel Selection - statistics & numerical data ; Population Economics ; Race ; Race Relations ; Recessions ; Regression Analysis ; Skin colour ; Social Sciences ; Sociology ; Studies ; Unemployment ; Unemployment - statistics & numerical data ; Unemployment - trends ; Unemployment rates ; United States ; White People - statistics & numerical data ; Workforce
Is Part Of: Demography, 2010-02, Vol.47 (1), p.227-247
Description: Studies have tested the claim that blacks are the last hired during periods of economic growth and the first fired in recessions by examining the movement of relative unemployment rates over the business cycle. Any conclusion drawn from this type of analysis must be viewed as tentative because cyclical movements in the underlying transitions into and out of unemployment are not examined. Using Current Population Survey data matched across adjacent months from 1989–2004, this article provides the first detailed examination of labor market transitions for prime-age black and white men to test the last hired, first fired hypothesis. Considerable evidence is presented that blacks are the first fired as the business cycle weakens. However, no evidence is found that blacks are the last hired. Instead, blacks appear to be initially hired from the ranks of the unemployed early in the business cycle and later are drawn from nonparticipation. The narrowing of the racial unemployment gap near the peak of the business cycle is driven by a reduction in the rate of job loss for blacks rather than increases in hiring.
Publisher: New York: Population Association of America
Language: English
Identifier: ISSN: 0070-3370
EISSN: 1533-7790
DOI: 10.1353/dem.0.0086
PMID: 20355692
CODEN: DMGYAH
Source: MEDLINE
PubMed Central
ProQuest Central

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LAST HIRED, FIRST FIRED? BLACK-WHITE UNEMPLOYMENT AND THE BUSINESS CYCLE

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