Abstract
This article examines employer demand for welfare recipients using new employer survey data. The results suggest that demand is high but sensitive to business cycle conditions. Factors including skill needs and industry affect prospective employer demand for recipients, while other characteristics that affect their relative supply to employers (e.g., establishment location) influence whether such demand is realized in actual hiring. The conditional demand for black and Hispanic welfare recipients lags behind their representation in the welfare population and seems affected by employers’ location and indicators of preferences. Thus, many demand‐side factors limit the employment options of welfare recipients, especially minorities.
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