Abstract
Workers in occupations that underutilize their experience, training, and skills are underemployed. Underemployment occurs for various reasons including productivity growth, spousal employment and income, family constraints, spatial restrictions, or personal preferences. Underemployment provides opportunities for selective job creation and economic growth. Using local employment dynamics (LED) and a statewide surve of the employed and nonworkers for 2004 and 2005, we examine the interaction between underemployment and LED. We show that poor local labor market conditions accentuate the perception of underemployment and lead to higher level of underemployment. Gender and ethnic differentials are also revealed in the characteristics of the underemployed.
Highlights
Workers in occupations that underuse their experience, training, and skills are underemployed
This paper examines the relationship between underemployment, characteristics of the labor force, and local labor market conditions using the survey developed by Center for Business and Economic Research (CBER) and Local Employment Dynamics (LED) data resulting from an inter-agency collaboration
We examine the relationships between underemployment and both labor force characteristics and local labor market conditions
Summary
Workers in occupations that underuse their experience, training, and skills are underemployed. This paper examines the relationship between underemployment, characteristics of the labor force, and local labor market conditions using the survey developed by CBER (see Section 3 and Addy et al, 2005, 2006 for more details) and Local Employment Dynamics (LED) data resulting from an inter-agency collaboration. The result is a unique set of information that can be of great potential value to community and regional leaders, educators, planners, policy makers, economic developers, and prospective employers These data enable the study of the relationship between underemployment and both characteristics of the labor force and local labor market conditions, the focus of this paper. We discuss our empirical results and conclude with the contributions of our study
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