JOB SEARCH AND POSTUNEMPLOYMENT WAGES OF HISPANICS.

Abstract

The overall objective of the research was to study the job search of Hispanics. This included an assessment of unemployment duration, postunemployment wages, and reported minimum acceptance wages of Hispanics, distinguished by Spanish surname, compared to non-Hispanic whites, referred to as Anglos, to ascertain whether there may be personal or job market characteristics that explain observed differences. The differences that were examined indicate program changes and additional programs to make job search outcomes of Hispanics more like those of Anglos. Three models of job search under conditions of imperfect information were utilized. These models of expected unemployment duration, expected postunemployment wages, and actual minimum acceptance wages were run separately for Hispanics and Anglos and in pooled regressions with an ethnic dummy variable and ethnic interaction variables. Differences in slope and intercept coefficients were tested for statistical significance. The data were collected for the Unemployment Insurance (UI) Benefit Adequacy Study of the Arizona Department of Economic Security. This survey contains information relating to the job search and financial status of 3347 UI beneficiaries in Arizona. This study first focused on 110 Hispanics and 1031 Anglos who found new employment and subsequently on a randomly selected sample of 449 Anglos and 51 Hispanics that included individuals who did not accept reemployment during the survey period as well as those who did. Differences in job search outcomes between Hispanics and Anglos appeared to be caused by personal characteristics, specifically age, education, career choices, and method of coping with necessary and obligated expenses while unemployed. Supplemental programs that enhance the job search effectiveness of Hispanics are in order, including career counseling, programs that keep Hispanics in school longer, educating Hispanics about alternatives for coping with financial burdens while unemployed or programs to ease those burdens, and the adoption by the state of Arizona of a program whereby UI benefits increase with the number of dependents.