Department of

Agriculture

Economic

Research

Service

Rural

Development

Research

Report

Number 54

Distribution of

Rural Employment

Growth by Race:

A Case Study

Victor J. Oliveira

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Distribution of Rural Employment Growth by Race: A Case Study. By Victor J.

Oliveira, Agriculture and Rural Economics Division, Economic Research Service,

U.S. Department of Agriculture. Rural Development Research Report No. 54.

Abstract

Whites benefit more than blacks from rural economic growth, based on the

findings of a survey of adults in 10 rural counties in southern Georgia. From

1976-81, a period of rapid employment growth, the percentage of white women

with jobs in the study area increased, while the percentage of black men with

jobs decreased. Among employed persons, whites increased their share of

higher wage jobs. Persons who moved into the area obtained higher paying jobs

than did other residents; these inmigrants, most of whom were white, in general took larger shares of the new jobs than continuous residents of both racial

groups. Improving the education and job training of poor residents, especially

blacks, is essential to distributing economic benefits more equally.

Keywords: Blacks, continuous residents, economic growth, employed persons,

inmigrants.

Acknowledgments

Douglas Kleweno and Lawrence S. Williams participated in the development of

sample and survey materials. Shirley Zonner assisted in data preparation. Robert

Coltrane and Thomas Carlin supervised the study. The author greatly appreciates

the valuable assistance of project leader James D. Schaub. Joyce Su prepared

the computer programs used in statistical hypothesis testing,

Washington, DC 20005-4788 January 1986
Contents

Page

Summary

Glossary

Introduction

Background

Study Area and SurveytDésîgn .. . .

Householdand Individual Characteristics .

ContinuoüsResIderits .\/. .. ..

Employment to Population Ratios . ......

Employed Persons .;.................

Nonworking Adults

Inmigrants . .........,......*.......

Summary ofLabor Force Changes^ 1976-81

Conclusions..

References

VI

. .1

..1

,.2

.4

. .6

. .6

. . 8

.11

. 13

.14

. 15

.16

IV
Summary

whites benefit more than blacks from rural economic growth, based on the

findings of a survey of adults in 10 rural counties in southern Georgia. From

1976-81, a period of rapid employment growth, the percentage of white women

with jobs in the study area increased, while the percentage of black men with

jobs decreased. Among employed persons, whites increased their share of

higher wage jobs. Persons who moved into the area obtained iiigher paying jobs

than did other residents; these inmigrants, most of whom were white, in general

took larger shares of the new jobs than did continuous residents of both racial

groups. Improving the education and job training of poor residents, especially

blacks, is essential to distributing economic benefits more equally.

This report analyzes the responses to a 1982 survey of adults in a rural area

selected to represent fast growing non metro areas with mixed manufacturing

and commercial agriculture-based economies with substantial minority populations.

Among nonworking adults in 1981, blacks were more likely than whites to

report that they wanted to work. Nonworking blacks, more than nonworking

whites, reported that they could not find jobs or that they could not meet hiring

requirements. Low education levels, which may be reflected in low skill levels,

prevented blacks from sharing more in the increased job opportunities. Nonworking whites more frequently chose not to work.

Adults who moved into the area after 1976 were better able to compete for jobs

than were most long-term residents. These predominately white inmigrants were

better educated than other residents. They apparently increased the average skill

levels of the local labor supply, putting the less educated residents, especially

blacks, at an even greater disadvantage in the labor market.
Glossary

Statistical testing and survey design:

Significant difference:

A comparison between two variables was statistiGally

significant at the 95-percent confidence level when the

observed difference was greater than twice the standard error of the difference. A comparison between

two variables was statistically signit'leant at the

99-percent confidence level when the observed difference was greater than 21/2 times the standard error

of the difference. The variables tested were in the form

of totals, ratios, percentages, dollar values, and so

forth.

Survey sample design:

Area frame^ The area frame consisted of a two-stage

stratified cluster sample, where the first stage involved

sampling segments and the second stagf involved

sampling establishments and households* The area

frame provided a sample of establishments and households not identified by the list frame. The area frame

and list frame together represented the total population of establishments and households.

List frame. The list frame sample comprised a list of

private-sector establishments and government units

located in the 10-county area. A subsample of employees was drawn from the surveyed list frame

establishments which subsequently became the list

frame sample of households.

Population aifid employee^related terms:

Household:

A group of persons, not necessarily related by blood

or marriage, whose usual place of residence is in a

house, an apartment, a group of rooms, or a single

room occupied as separate living quarters.

Household income. All ¡ncome received during the

year by household members except income received

from the sale of land, buildings, stock, or other

capital assets.

Household member. Any person whose usual place

of residence is in the housing unit that was surveyed.

(A housing unit is a house, an apartment, a group of

rooms, or a single room occupied as separate living

quarters.)

Adult:

Any person who was 16 years of age or older in

January 1982.

Bmployment status:

Employed. Employed persons who were working for

wages or salaries or who were self-employed in their

own businesses or professions or on their own farms.

Nonworking aditlts. Unemployed persons who were

looking for work or on layoffs waiting to be called

back to a job or persons not in the labor force.

Employment to population ratio. The proportion of

the adult population that was employed during the

year (E/P ratio).

Full'time. Wage and salary workers who worked 30

or more hours per week.

Part-time, Wage and salary workers who worked less

than 30 hours per week.

Recent entrants to the labor force. Persons who were

not in the labor force in 1976 but who were employed 1 or more weeks in 1981.

Experienced workers. Persons who were employed 1

or more weeks in both 1976 and 1981.

Self-employed. Persons who worked for profit or fees

in their own businesses or professions or on their

own farms.

Resident status:

Continuous residents. Residents who lived in the

10-county area continuously between December 31,

1976, and January 1982.

Continuous residents include long-term residents who

lived in the area continuously between December 31,

1966, and January 1982 and early inmigrants who

moved to the 10-county area between January 1,

1967> and December 31, 1976.
Recent inmigrants. Residents who moved to the

10-county area between January ], 1977, and

January 1982.

Occupational groups:

Executive. Includes managerial, administrative,

engineering, scientific, teaching, and related occupations, Including creative artists.

TechnicaL Includes technicians, clerical, sales, service, farming, forestry, fishing, and hunting occupations, and persons living in the area who were in the

military.

Production. Includes production workers in manufacturing, construction, extractive, transport, and

related occupations.

Race:

Survey enumerators asked respondents to determine

their own race. Whites and blacks are the racial groups

of statistical significance in the 10 Georgia counties.

Although included in the overall population, such

groups as Hispanics, Asians, and American Indians

made up less than 0.5 percent of the population, a

statistically insignificant proportion.

VII
Distribution of Rural Employment

Growth by Race

A Case Study

Victor J. Oliveira*

Introduction

A primary goal of the Rural Development Act of 1972

and the Rural Development Policy Act of 1980 was to

generate employment opportunities in local areas in

order to improve the well-being of area residents. Employment is directly related to improving an individual's

well-being since the sale of one's own labor is the primary source of income for most rural residents.' The

quality of community services and facilities depends

on the tax base and purchasing power provided by

employment and income {20). A basic premise of

Federal rural development programs is that economic

growth benefits the unemployed and other disadvantaged groups by improving employment opportunities

and inconie. The rationale behind this premise is that

economic development increases the demand for skilled

labor, which in turn results in upgrading the positions

of low-skilled and unemployed workers (7).

Many studies have examined the distributional effects

of economic growth on various population groups, including whites and minorities, using regional or national data. However, few studies have specifically

focused on local rural labor markets. Highly aggregated regional and national data may not be representative of individual rural labor markets. Because of

these data limitations, the effectiveness of rural development programs in aiding unemployed and low-income

residents has not yet been clearly documented.

*The author is an economist in the Agriculture and Rural

Economics Division, Economic Research Service, U.S. Department of

Agriculture, Washington, DC.

'Wages and salaries accounted for 70.7 percent of total family income in nonmetro areas in 1979. Self-employment income accounted for another 10.2 percent (27). Italicized numbers in parentheses refer to items in the references section.

This report measures the effects of economic growth

on whites and blacks in a 10-county area in rural

Georgia. The focus is on the distribution of jobs and

the characteristics of these jobs between 1976 and

19Ö1, to see how whites and blacks shared in the

benefits associated with economic growth. This period

was one of rapid economic growth in the area. The information contained in this report should prove useful

to economic development agencies, local area planners,

and State and Federal program managers in planning

effective rural development strategies.

Background

The employment and income situation of minorities in

the United States has long been one of this country's

major concerns. Historically, most minorities have

been disadvantaged, in relation to nonminorities, in

both opportunity and economic status. This situation

has been especially true of blacks who made up 70

percent of the U.S. nonwhite population in 1980 (22),

The lower labor force participation rate and higher

unemployment rate of blacks is well documented (7,

14). In rural areas, the displacement of blacks from

agricultural employment has contributed to their high

unemployment.2 Blacks who seek employment off

farms have traditionally taken lower skilled and lower

paid jobs than have whites (9, 32). Explanations for

'^The number of biack-operated farms declined by 79 percent between 1959 and 1978 while white-operated farms declined by only

30 percent {24, 25). Similarly, the number of black and other minority

hired farmworkers fell by 75 percent between 1960 and 1981 compared with a 7-percent decrease in the number of white hired farmworkers {W, 19).
Victor). Oliveira

these racially different employment patterns include

differences in education levels, job training, and work

experience, as well as discrimination against blacks in

the labor market.

How has economic growth affected the position of

blacks compared with whites? Previous research has

suggested that economic growth benefits blacks relatively more than whites; several studies have found

that when national business conditions have improved,

blacks have left the ranks of the unemployed in greater

proportions than whites (7, 13, 17). Earnings and movement up the occupational ladder have also progressed

faster for blacks than whites during periods of favorable

economic expansion (32). Conversely, the position of

blacks declines in relation to whites during periods of

economic downturn (7, 17). These results have been

attributed to the fact that blue-collar employment,

where most employed blacks are concentrated, is considerably more affected by changing business conditions than is white-collar employment.

The results of these studies were based on nationally

aggregated data. While economic development generally increases employment opportunities at the national level, the associated benefits, in terms of higher

employment rates and increased wages, may not be distributed equally among population groups or regions.

Therefore, national results may not be applicable to

local areas, particularly rural areas. Previous research

has found that for most measures of socioeconomic

status, including educational attainment, occupational

structure, and family income, racial disparity is greater

in nonmetro areas than in metro areas (2).

The advanced technology associated with fast-growing

areas may have increased the demand for highly skilled

labor and decreased the demand for less skilled labor

(3). Therefore, individuals with limited job skills may

find that economic development leaves them in a relatively worse economic position than before. Since

blacks generally have lower levels of schooling and job

training than whites, they are at a disadvantage when

competing for new, highly technical jobs. Such technological displacement may contribute to black unemployment and may limit black economic opportunity (5).

Technological displacement of workers may not be the

only risk of economic development. Economic development can open up a wide range of new employment

opportunities, but it is also frequently associated with

inmigration. Hence, local residents must not only compete with each other, but they must also compete for

new jobs with people moving into the area from other

regions. Inmigrants may have educational and work

experience levels greater than those of the local inhabitants, and consequently they may have a comparative advantage in the expanding labor force (4). As inmigrants improve the overall quality of the labor supply, employers' expectations about educational attainment and job skills rise, and job standards may become

even more rigorous, reducing job opportunities for

persons with lower education and job skill levels (Ö).

Study Area and Survey Design

The data for this study came from a 1982 survey in 10

rural southern Georgia counties—Berrien, Brooks, Colquitt. Cook, Echols, Grady, Lanier, Lowndes, Thomas,

and Tift {fig. 1). Economists in USDA's Economic Research Service designed the study to examine the dis^

tribution of jobs among rural residents (15). Valdosta,

with a 1980 population of 36,650, is the only city in

the study area with a population over 20,000. The

nearest metro areas, Albany, Georgia, and Tallahassee,

Florida, are about 30 miles away.

This area was the second of three areas surveyed by

the Economic Development Division (predecessor to

Figure 1

The 10-county Georgia study site
Distribution of Rural Employment Growth by Race: A Case Study

the Agriculture and Rural Economics Division) to study

how the effects of economic growth in rural labor markets are distributed (4, 15). We chose the study site

because it is representative of local labor markets with

the following characteristics:

• A sizable minority population.

• A mixed industrial base including a significant

agricultural sector.

• A reasonably self-contained labor market as

evidenced by low commuting rates into and out

of the area.

• Employment growth in the seventies above the

average growth rate for all nonmetro counties.

While the study area does not represent the total nonmetro United States, it does typify substantial segments

of the nonmetro South. The relationships found in this

study should hold for other nonmetro areas with simitar attributes.

Between 1976 and 1981, total employment ¡n the area

increased 11.5 percent, and population increased by

4.6 percent. This compared with U.S. nonmetro rates

of 8.8 percent and 5.7 percent, respectively (28). Most

of the new jobs were in technical- and productionrelated occupations, and relatively few new jobs were

in professional occupations (15), The growth of new

business in the area was rapid; one-third of the area's

5,800 businesses started operations after 1976.

To learn how job opportunités were distributed among

population subgroups, we used a random stratified

multiple frame survey design to collect the necessary

data.^ We compiled a list frame of employers in the

10-county site stratified by type of industry and employment size from data supplied by the Employment

Security Agency of the Georgia Department of Labor,

the Georgia Department of Industry and Trade, telephone directories, and trade association membership

lists. We then developed a random sample of employees from surveyed business establishments on the

establishment list frame. This sample of employees

formed the list frame sample of households.

*See {15) for more detailed information on the survey design,

stratification, sampling rates, and response rates.

We used an area frame to develop a sample for interviewing those households not included on the list

frame. This area frame included those households with

no employed members and households wheje employed

members worked in businesses not on the list of establishments. We stratified the area frame by three types

of land-use patterns and by the concentration of residences of minorities. We included the stratum for

minorities in order to ensure that a sample of minority

households would be adéquate for analysis.

The minority population in the 10-county study area

was concentrated in cities and towns and generally

resided within definable boundaries in these more urban areas. These minority neighborhoods were mapped

as distinct strata from the balance of urban places.

We thought that the high unemployment of minorities

might limit list frame contacts. The spatial distribution

of minorities was such that an area frame hot stratified

by race might not pick up enough minority households

for statistically reliable inferences. Other minorities, including American Indians, Asians, and Hispanics,

made up less than 0.5 percent of the population, a

statistically insignificant proportion, in the study area.

For summary purposes, the racial groups American Indians and Asians were included with blacks; the ethnic

group of Hispanics was included with whites in this

report.

Enumerators interviewed a random sample of list frame

and area frame households in January and February

1982 using the household questionnaire. Collected

data on household composition and demographics included the age, race, gender, and educational attainment of household members* Information on 1981 and

1976 employment status was obtained for all adults

age 16 years or older in each year. Survey questions

covered occupation, employing industry, hours and

weeks worked, and wage rates for those working in

1981 or in 1976. We asked those persons who did not

work in 1981 why they were not working. All adults

were asked about participation in job training programs and migration to the study site. Finally, each

household was asked a series of questions on sources

and amounts of income and participation in public

assistance programs. A total of 1,015 households containing 3,003 persons completed interviews including

241 black households and 840 black household members. The data were expanded to estimates of total

population in the area.
Victor J. Oliveira

The survey measured the households in the study area

as they existed in January and February 1982 and also

included recall questions to determine their 1981 and

1976 circumstances. However, interviews with the current population cannot fully describe the 10-county

area as it existed in 1976 because the survey design

does not account for those persons who died or moved

away before January 1982. In effect, the survey measures

only the survivors from 1976 and newcomers to the

area.

Because the data are derived from a survey, all estimates of totals, proportions, and means in this report

are subject to sampling error. Even though a given estimate is different between two or more subpopulations

or variables, the difference may not be statistically

significant due to sample variation. Discussions in the

text which compare differences of subpopulations are

limited to those comparisons which are statistically

significant at the 95-percent confidence level or

higher, unless otherwise noted. Differences in the

tables between subpopulations which are statistically

significant at the 95- or 99-percent confidence level are

noted. In instances where the number of sample households or persons associated with a given attribute was

less than 30, we did not attempt statistical testing;

household and person estimates based on fewer than

10 sample observations are noted in the following

tables. Such estimates typically have very large standard errors and they should be interpreted with care.

However, for the majority of estimates, the coefficient

of variation does not exceed 15 percent. (See (?5) for

the statistical tests used in this study.)

Household and Individual Characteristics

Data from the surveyed households represent over

75,000 households, about 27 percent of which were

headed by blacks (table 1). Black households in the

area, resembling those throughout the nonmetro

South, had lower incomes and were more likely to

participate in public assistance programs than white

households (23). The average household income for

blacks in 1981 was over $6,500 less than the average

household income for whites. Almost 25 percent of all

black households participated in at least one public

assistance program compared with only 6 percent of

all white households. Similarly, black households were

four times as likely as white households to receive

food stamps.

Black households in the area were more economically

disadvantaged than white households, partly because

black households earned less than white households,

but also because of their household structure. Although

black households were larger than white households,

they had fewer employed household members. Households headed by women are associated with low incomes, and 41 percent of the black households were

headed by women compared with only 22 percent of

white households. The average income for black

households headed by women was about $5,000 less

than for black households headed by men. Because of

these factors, per capita income in black households

was less than half that in white households.

The economic well-being of households, except for

the aged, depends largely on the wage earnings or

Table 1—Household structure by race, January 1982

Characteristic Total White Black

Number

Households 75,130 54,960

Persons

20,170

Average household size 2.8 2.7** 3.4

Employed persons per

household' 1.2 1.3*

Dollars

1.1

Average household

income' 15,200 17,026** 10,447

Per capita Income^ 5,313 6,408**

Percent

3,080

Households headed by

women 27.5 22.4** 41.3

Participation in:

Public assistance

programs^

Food stamp program

1K2

12.3

6.5**

6.8**

24.1

27.4

Note: Rounding will affect computations using these figures.

Significantly different from the corresponding black value at the

95-percent confidence level.

**Significantly different from the corresponding black value at the

99-perceht confidence level.

!Based on 1981 information.

^Equals household income divided by number of household

members.

^includes Aid to Families with Dependent Children and Supplemental Security Income.
Distribution of Rural Employment Growth by Race: A Case Study

self-employnr>ent income of the individuals in the

households. Income from rents and interest as well as

government transfer and assistance program payments

are usually smaller components of household income.

Examining the characteristics related to the earning

ability of individuals is useful when assessing the effects of economic growth in an area. These characteristics include the race, gender, age, and education

level of individuals.

Almost 32 percent of the estimated 213,780 people living in the area at the time of the survey were black

compared with 19 percent in the nonmetro South in

1980 (table 2). The black adult population contained a

greater percentage of women than did the white population. The implication of this is that women, with their

lower average wages, will be more heavily represented

among employed black adults than among employed

white adults.

Blacks in the study area were generally younger than

whites, meaning that a smaller percentage of blacks

were old enough for employment. To the extent that

age measures experience, blacks also had less work

experience.

Whites were significantly more likely than blacks to

have been recent inmigrants, that is, they moved into

the area sometime after 1976."* As a group, these inmigrants completed 2 more years of formal schooling

than did continuous residents. Other studies have also

found that inmigrants have more schooling, training,

and skills than do long-term residents (4, 8),

Formal education qualifies people for more and better

paying jobs. The educational structure of the area's

adult population resembed that of the nonmetro South

with whites completing more years of education than

blacks (23), About 60 percent of all area white adults

completed high school compared with only 36 percent

of black adults (table 2). Whites were three times more

likely than blacks to have some college education. On

average, whites completed over 2 more years of schooling than blacks.^

''in this report, long-term residents and early inmigrants (persons

who moved into the area between 1966 and 1976) were combined

into one group for comparison with recent inmigrants. This was done

so that residents moving to the area after 1976 could be compared

with residents living continuously in the area between 1976 and

1981. Our objective was to determine if newcomers to the area during a period of robust economic growth benefited from the growth

more or less than did area residents living in the area during the entire growth period. Economic growth in the area was measured from

1976 to 1981. See Glossary for the definition of resident status.

''The data did not permit measurement of the quality of education

by race. Other studies have suggested that the education provided to

blacks in parts of the South is of lower quality than that provided to

whites (3/).

Table 2—Characteristics of household members by race,

January 1982

Characteristic Total White Black

Number

Household members 213,780 145,460

Percent

68,320

Men

Wonnen

46.5

53.5

47.4*

52.6*

44.6

55.4

Age:

Under 16 years

16 to 24 years

25 to 34 years

35 to 54 years

55 to 64 years

65 years and older

29.3

14.6

15.4

20.4

9.3

11.0

25.5**

13.3**

16.8**

22.0**

10.4**

12.0

Years

37.4

17.3

12.3

17.0

7.0

9.0

Average age 32.0 34.0**

Number

28.3

Adult population, 16

years and older 151,120 108,360

Percent

42,760

Residency status:'

Continuous residents

Recent inmigrants

86.2

13.8

82,6**

17.4**

95.2

4.8

Education:

Less than high school

High school

Beyond high school

46.2

32.8

21.0

39.1**

34.7**

26.2**

years

64.1

28.1

7.8

Average years of

schooling completed 10.8 11.4** 9.3

*Signlficantly different from the corresponding black value at the

95-percent confidence level.

**Significantly different from the corresponding black value at the

99-percent confidence level.

'Continuous residents resided in the study area continuously between December 31, 1976, and January 1982. Recent inmigrants

moved to the study area between January 1, 1977, and January 1982.
Victor J.Olîveira

The educational data presented in table 2 include all

adults age 16 and older. This group includes some persons who were still in school at the time of the survey.

The education levels of whites in the area remained

virtually unchanged if one examines only those persons 25 years of age and older. This latter group is

more likely to have finished their formal education

than younger adults. The education levels of blacks

age 25 and older were slightly lower than those of all

black adults. Sixty-nine percent of all blacks age 25

and older did not graduate from high school compared

with 64 percent of all black adults. On average, blacks

age 25 and older completed 8.7 years of schooling. In

effect, the difference in education levels between adult

whites and blacks was even more pronounced for adults

age 25 and older.

The survey data suggest that the economic position

and human capital levels of blacks in the 10-county

area in 1982 were below those of area whites. Blacks

had significantly lower household income, per capita

income, and education than did whites, while blacks

relied more heavily on public assistance. Our conclusion is that the following characteristics of the area's

adult black population combined to limit blacks' earnings compared with whites': lower levels of schooling,

younger age, and the greater number of households

headed by women. However, these data do not show

whether blacks have improved their position in relation to whites over time or whether they have benefited from economic growth. Analysis of the labor market position of blacks and whites before and after

employment growth indicates the distributional effects

of economic growth. Though blacks started from a

tower economic position than whites, the relative differences in their positions after growth should be the

same if blacks and whites shared equally in the area's

economic growth. To explore these issues, we compared

the economic situations of blacks and whites in 1976

with their situations in 1981, during which time the

area's economy grew substantially.

Continuous Residents

The analysis of the distributional effects of growth in

this section covers only residents who lived in the area

continuously between 1976 and 1981. A subsequent

section, In migrants, will cover residents who moved

into the area after 1976. No single statistical measure

can tell us if blacks have benefited from economic

growth to the same degree as whites. For this reason,

we used three measures to compare the economic position of whites and blacks during a period of employment growth: 1) the percentage of the black and white

population that was employed in 1976 and in 1981; 2)

the characteristics of employed blacks and whites in

1976 and in 1981; and 3) the characteristics of nonworking adults in 1981.

Employment to Population Ratios

The percentage of the adult population (16 years of

age and older) that was employed at some point during the year, is known as the employment to population ratio (E/P ratio). This ratio is often used to examine

patterns of employment among population groups (72).

It combines the population's inclination to seek work

and the probability of obtaining a job. Changes in this

ratio over time indicate changes in both the desire of

the population to work and the availability of jobs.

Employment to Population Ratios in 1976. The difference between the measured E/P ratios for all blacks

and whites in 1976 was not statistically significant

(table 3). There were also no significant differences in

the 1976 E/P ratios between whites and blacks by gender

or education level. The only significant difference in

1976 Eyp ratios was for persons aged 16 to 24 years. A

significantly larger percentage of whites than blacks in

this age group were employed. This result is consistent

with national data which show that young black adults

have historically had lower E/P ratios and higher

unemployment rates than young whites (W, 12, 14).

Reasons cited for the racial disparity in young adult E/P

ratios include educational differences, discrimination in

hiring, a limited knowledge of the labor market among

low socioeconomic groups, and the discouraging effect

of persistently high unemployment rates for black

youths (70, 14).

Employment to Population Ratios in 1981. With the

exception of the young adults, blacks and whites appeared to have had similar overall employment opportunities in the study area in 1976. However, between

1976 and 1981, when the study area's job market

grew rapidly, significant differences had appeared in

the overall E/P ratio as well as in several subcategorres

of black and white employment to population ratios.

Unlike 1976, in 1981 black men were significantly less

likely to have worked during the year than white men.

In addition, blacks in their prime working years (35 to
Distribution of Rural Employment Growth by Race: A Case Study

54 years of age) were also employed at significantly

lower levels than their white counterparts in 1981.

This latter result was ainnost entirely attributed to differences between the E/P ratios of white and black

women. While the observed difference in E/P ratios

between all black and white women was not statistically significant, black women in the 35 to 54 years

age group were employed at significantly lower levels

than were white women. Sixty percent of all white

women in this age group worked in 1981 compared

with only 35 percent of the black women. One explanation for this result may be that black women age

35 to 54 tended to live in larger households and

households with more small children present than

white women of the same age. For example, 29 percent of all black women in this age category lived in a

household with a child under 6 years old, compared

with less than 10 percent of similar-aged white

women. The increased household responsibilities

associated with small children make it more difficult

for women to work outside the home.

Table 3—Employment to population ratios for continuous

residents, by race, 1976 and 1981

1976 1981

Characteristic White Black White Black

Percent

Adult population 60.1 56.0 63.6** 51.5

Men 78.0 71.5 77.9** 61.8'

Women 45.3 45.4 51.52 44.3

Age:

16 to 24 years

25 to 34 years

35 to 54 years

55 to 64 years

65 years and older

63.9**

74.9

70.6

50.3

15.1

42.4

77.7

71.2

50.9

13.0

66.4**

82.52

81.6**2

53.1

17.4

38.9

76.2

70.6

54.2

9.4

Education:

Less than high school

High school

Beyond high school

51.3

66.9

65.8

52.1

61.7

71.9

47.3

75.02

76.72

42.6^

68.9

69.4

As in 1976, there was no significant difference in the

E/P ratios of blacks and whites by education level in

1981. That is, adult blacks with less than a high school

education were as likely to be employed as whites

with less than a high school education. Similarly,

blacks and whites who had completed high school and

those who had attended college were equally likely to

be employed (table 3). These results strongly suggest

that educational attainment was a major determinant

of employment in the study area, and they also help

explain why significantly larger proportions of adult

whites, as a group, were employed than blacks in

1981. On average, adult whites had completed 11.4

years of schooling compared with 9.3 years for blacks.

Since higher educational attainment is generally associated with greater labor market success, these findings

suggest that much of the overall difference in black

and white E/P ratios is due to whites' higher level of

schooling.*^

Changes in Employment to Population Ratios between 1976 and 1981. The change in the overall white

E/P ratio in 1981 was not statistically different from the

white 1976 E/P ratio (table 3). The overall E/P ratios for

blacks also did not change significantly between 1976

and 1981. However, these ratios mask some significant

racial changes by gender, age, and education groups.

For example, between 1976 and 1981, the E/P ratios

for white women increased significantly, while the E/P

ratio for black men decreased significantly. During this

same 5-year period, the E/P ratios for white men and

black women did not change significantly.

These changes indicate that white women benefited

relatively more than did black men in the area's

employment growth. However, the white women who

started work after 1976 and the black men who quit

working between 1976 and 1981 probably were not

competitors for the same jobs. The group of white

women who began working between 1976 and 1981

had completed an average of 12 years of school and

worked mostly in professional or technical occupations. Black men who left the work force after 1976,

on the other hand, were generally older than these

white women, had completed an average of only 7

**Significantly different from the corresponding black value at the

99-percent confidence level.

^Significantly different from 1976 black value at the 95-percent

confidence level,

2Significantly different from 1976 white value at the 95-percent

confidence level.

^While blacks were as likely to be employed as whites with the

same education level, this result cannot be used to draw conclusions

about racial discrimination. The Georgia study was not designed to

measure the effects of discrimination in the labor market. Other research has shown that employed blacks in the rural South may be

victims of substantial wage discrimination and occupational segregation (76).
Victor J.Oliveíra

years of school, and had mostly worked in productionrelated jobs. The decrease in the percentage of black

men who were employed from 1976 to 1981 has negative implications for black households because some

researchers have argued that income earned by male

members of a household may be the most important

variable affecting the longrun movement of black

families out of poverty (30) J The E/P ratios for whites

in the age groups of 25 to 34 years and 35 to 54 years

also increased significantly between 1976 and 1981.

These are usually the years when average earnings

peak for most workers (11), None of the 1981 E/P

ratios for blacks by age changed significantly from 1976.

The E/P ratios for whites who completed high school

and for those with some college education increased

substantially between 1976 and 1981, while the E/P

ratio for blacks who did not complete higli school decreased significantly. These changes suggest that job

growth in the area benefited the more educated persons (especially whites) more than those less educated.

Persons with more education were apparently better

able to take advantage of the new job opportunities

than were less educated persons. Education increases

peoples' ability to adapt to shifts in the demand for

labor and qualifies them for more types of jobs. Many

employers, when hiring, use educational attainment of

applicants as the main indicator of future work proficiency (6). Because whites had more years of formal

education than blacks had, whites tended to benefit

more from job growth requiring higher levels of

schooling.

In summary, whites were significantly more likely than

blacks to be employed in 1981, a result not found in

1976. This finding would be unexpected if whites and

blacks shared equally in the area's job growth. White

women were the biggest gainers during the 5-year

period, while the percentage of black men who were

employed actually decreased during a time of overall

employment growth in the area.

Employed Persons

Were white workers more skilled than black workers?

In what other ways did employed whites and blacks

differ? Did major changes occur in their characteristics

between 1976 and 1981? These are important economic

'^Nationally, black men contributed only 56 percent of black total

family money income in 1981, compared with 71 percent for all men

(26).

development questions because the skills and experience workers bring to the labor market in large part

determine their wages. The demographic and economic

characteristics of the employed continuous residents

by race are presented in table 4.

Characteristics in 1976, While some characteristics of

the 1976 workers, such as average age, were similar

by race, significant differences existed in other characteristics between white and black workers. Some of

these characteristics help to explain the racial differences in employment rates and suggest how the benefits of economic development varied by race. For example; men made up a larger proportion of white

workers than of black workers in the study area. White

households will benefit from the fact that the earnings

of employed men are generally greater than the earnings of employed women. For that same reason, black

households, where women are frequently the principal

wage earner, will probably be relatively worse off than

white households.

Educational attainment was one of the most striking

differences between white and black workers in 1976

that probably affected their employment and earnings

levels. Sixty-four percent of alt employed whites had

completed high school, compared with only 38 percent of the blacks. Similarly, a much greater proportion of whites had some college education. On average, white workers completed 2 more years of schooling than blacks did.

Black wage workers were as likely to work full-time as

white wage workers in 1976, but white workers were

more likely to be self-employed. The higher level of

self-employment of whites in the study area mirrors

similar national figures.^ Whites in general appear to

be more likely to have the managerial experience and

capital necessary to start a business. Historically, there

have been relatively few black-owned businesses, so

blacks have had less opportunity than whites to inherit

a relative's business or learn first hand how to run a

self-owned business.

The distribution of occupations by race in 1976 shows

that blacks, in contrast to whites, were disproportionately concentrated in production positions. Whites, on

the other hand, were significantly more likely to be

employed in the higher paying professional occupa-

^Nationally, 9.2 percent of empioyed whites were self-employed In

1981 compared with 4.5 percent of employed blacks {27).
Distribution of Rural Employment Growth by Race: A Case Study

tiens.'* Although the percentage of whites and blacks

employed in technical positions was not significantly

different, within this group whites held more of the

marketing, sales, and clerical jobs while blacks predominated in the lower wage service jobs. On average, the weekly wage for black full-time workers was

only 73 percent that of whites (table 4).

By industry, whites in 1976 were more likely than

blacks to be working in wholesale or retail trade.

Blacks, however, were overrepresented compared

*^The average 1976 weekly wage for area residents employed in

professional occupations was $248 compared with $146 for technical

workers and $158 for production workers.

with whites in the manufacturing industry where most

of the production occupations were found.

Characteristics in 1981, The data for 1981 indicate

that in some respects relative differences in black and

white employment profiles were unchanged from 1976,

but in some important measures the employment situation of blacks actually worsened over the 5-year period.

For example, in 1981 whites worked a significantly

greater number of weeks than blacks, a result not

found in 1976. On average whites worked about the

same number of weeks in 1981 as in 1976, while

blacks worked almost 3 weeks less in 1981 than in

Table 4--Characteristics of employed continuous residents, 1976 and 1981

Characteristic 1976 1981 Characteristic 1976 1981 ^_^ I 1 W« 1 1^^».**^ 1 > *J *- V--

White Black White Black

^.i^ r^A 1 ^^'^«^«.'H.^ 1 « «rfP K >^

White Black White Black

Number Weeks

Ennployed persons 47,730 18,520 56,970 20,960 Average weeks worked 46.7 47.3 46.9** 44.4^

Percent Percent

Men 58.8* 51.8 56.1** 49.7 Major occupation:

Women 41.2* 48.2 43.9** 50.3 ProfessionaP 14.3** 7.9 15.4** 7,0

Technical 51.4 46.6 50.9** 42.9

years Production and

related occupations 34.3** 45.5 33.7** 50.1

Average age 38.3 38.4 38.9 37.4

Industry:

Percent Manufacturing 20.7** 35.2 22.5** 37.1

Mining and construction 14.2 14.9 12.8 16.0

Education: Wholesale and retail

Less than high school 35.5** 61.9 31.6** 54.7 trade 22.3** 12.6 23.7** 12.3

High school 38.4** 29.9 41,5 36.0 TCPU and FIRE^ 9.6 2.6^ 7.9 2.3^

Beyond high school 26.1** 8.2 26.9** 9.3 Other services^ 13.9 11.9 12.1 11.3

Government 19.3 22.8 21.0 21.0

years

1981 workers who were

Average years of employed in 1976 na na 75.1 74.7

schooling completed 11.6** 9.5 11.9** 10.1

Participated in a job

Percent training program , NA NA ^ 10.3 11.7

Full-time wage worker^ 81.9 86.8 78.2 83.0 Dollars

Part-time wage worker 5.3 9.5 9.6 14.5

Self-employed worker 12.8** 3.7 12.2** 2.5 Average weekly earnings^ 172** 125 239** 178

na= Not applicable. NA= Not available. *Significantly different from the corresponding black value at the 95-percent confidence

level, **Significantly different from the corresponding black value at the 99-percent confidence level. ^Representé workers working 30 '

or more hours per week. ^Significantly different from the 1976 black value at the 99-percent confidence level. ^Includes executives,

administrators, and managers. "^Includes marketing, sales, clerical, and service workers. ''TCPU is transportation, communications, and

public utilities; FIRE is finance, insurance, and real estate. ^Estimate based on fewer than 10 unweighted observations. ^Includes hotels,

personal, business, amusement, health, legal, education, and social services. ^Based on earnings of full-time wage and salary workers.
Victor J. ONveira

1976, This result can have an important effect on black

households because less work means lower annual incomes. This finding is probably related to the national

economic downturn in 1981. Unemployment is more

likely during a recession in blue collar occupations,

where blacks predominate in the study area, than in

other occupations (7).

In both 1976 and 1981, blacks were significantly less

likely than whites to be working in wholesale and

retail trade and more likely to be employed in manufacturing. This pattern of employment adversely affected blacks' employment in the study area in 1981.

National data indicate that the manufacturing sector,

with its high concentration of production workers, was

most affected by the 1981-82 recession (29). Employment levels in services and wholesale and retail trade

are generally less sensitive to recessions.

An individual's job skills in large part determine success

in the labor market. These job skills can be attained

through schooling, work experience, and participation

in formal job training programs. Of the three indicators

of job skills reported here, whites achieved significantly

greater levels than blacks in 1981 only in formal educational attainment. The proportions of employed whites

and blacks with formal job training in 1981 were not

significantly different. About 10 percent of both races

had participated in some job training program.^^ i^

terms of work experience, about three-quarters of both

whites and blacks employed in 1981 had worked in

1976. However, work experience in 1976 as a machine

operator may not be as valuable in leading to increases

in earnings as work experience as a manager or engineer. Machine operators may have less opportunity for

promotion and wage advancement than managers or

engineers. Because blacks are underrepresented in the

higher wage professional occupations, they may have

benefited less from work experience than whites did.

Other studies have shown that years of work experience may also be less valuable for blacks because

some firms may not invest in as much on-the-job training for blacks as for whites, and may show a preference for promoting whites over blacks of similar qualifications (6). Our data do not permit us to determine

if this conclusion is an appropriate one for the study

area.

^^Among all adults, whites, on average, received over 2 more

months of job training than did blacks. However, among employed

adults, blacks and whites did not differ significantly in terms of the

number of months spent in job training programs. The quality of job

training programs for whites and blacks could not be ascertained

from the data.

Employment growth also provided jobs for persons

with limited work experience. Twenty-five percent of

the continuous residents employed in 1981 did not

work in 1976. Many of these recent entrants to the

labor force were youths making the transition from student to worker. Among persons with limited work experience, white women benefited the most from the

area's job growth. White women, who made up 37

percent of the area's adult continuous residents, accounted for 45 percent of the recent entrants. Blacks,

on the other hand, made up 31 percent of the adults,

but only 27 percent of the recent entrants.

In both 1976 and 1981, whites were more likely than

blacks to be working in professional occupations,

while blacks were overrepresented relative to whites in

production occupations. The distribution of professional

occupations by gender also differed for whites and

blacks. White men in the study area made up 65 percent of the white professionals in 1976 and 57 percent

in 1981. However, black men held only one-third of

the professional jobs held by blacks in both years.

Once again this result has negative implications for

black families relying on a man's income for their economic well-being. Black households headed by vyomen

also did not benefit from having the head of the

household working in a high-paying professional job.

Only 3 percent of the black women who headed

households worked in professional occupations in

1981. In fact, 58 percent of all black women who

headed households did not work during 1981.

The higher levels of education achieved by whites

helps explain the greater proportion of whites in professional occupations in 1976 and 1981. Occupational

mix in turn appears to account for the significantly

higher average weekly earnings of whites. In 1981, as

in 1976, the average weekly wage for black workers

was only three-quarters that of whites.

Weekly wages of continuous residents not only differed

by race but also by gender and by age (table 5). Adult

black males both under and over 35 years of age had

significantly lower average weekly incomes than did

their white counterparts in 1976 and 1981. In both

years young black men 16 to 35 years of age earned

about 74 percent of the earnings of young white men,

and black men age 35 years and older averaged only

about 60 percent of the weekly wage of comparably

aged whites. These results support the findings of other

10
Distribution of Rural Employment Growth by Race: A Case Study

research in which the greatest racial differences in

average earnings, in both absolute and relative terms,

were among older men (6, 9, 11). The smaller earnings

gap between young black and white workers is probably because of the relatively smaller differences in

educational attainment, skills, and work experience at

the younger age levels (11).

Since the sixties, the black-to-white earnings difference

for women at the national level has been narrower

than that observed for men (9). Although black

women in the study area earned significantly less than

white women in 1976, the earnings gap was less than

that observed for men. This finding may be because

women, both white and black, are more concentrated

in lesser skilled, lower paying jobs which have traditionally been easier for blacks to enter (32). The earnings gap between the study area's white and black

women narrowed in 1981. In fact, the average weekly

earnings in 1981 of black women over 35 years of age

did not differ significantly from those of similarly aged

white women. This was the only group based on age

and gender for which this was true.

In summary, employed blacks did not improve their

position in the labor market between 1976 and 1981

in relation to whites. Black workers in 1981, as in

1976, were less educated, earned lower wages, and

were less likely to be working in professional occupations than white workers. Unlike whites, blacks worked

fewer weeks in 1981 than in 1976, a result that has

negative implications for the annual earnings of blacks.

Among persons with limited work experience, white

women benefited most from the area's employment

growth.

Nonworking Adults

Availability of workers is an important factor in future

economic growth. Adults who are not working represent part of the area's pool of potential employees.

The reasons that those adults were not employed will

indicate if they would be available for employment if

jobs were available for them. In 1981, almost half (48

percent) of the adult black continuous residents in the

study area were not working, but only 36 percent of

the adult white continuous residents were not employed. Furthermore, between 1976 and 1981, the

number of nonworking adults increased by 36 percent

for blacks compared with only 3 percent for whites.^'

Clearly blacks did not benefit from the area's increased

employment opportunities to the same degree as whites.

^^The number of adult continuous residents Increased by 13 percent for whites and 23 percent for blacks over the same period of

time.

Table 5—Average weekly wages of employed continuous residents, by race, gender, and age, 1976 and 1981^

1976 1981

Characteristic Black/white Black/white

White Black ratio White Black ratio

Dolfars- Percent —Doliars- Percent

Men 204** 135 66 284** 187 36

Age: _

16 to 35 years 179** 133 74 240** 176 73

35 years and older 230** 136 59 323** 197 61

Women 130** 113 87 184** 168 91

Age:

16 to 35 years 129** 112 87 178** 156 88

35 years and older 131** 115 88 191 182 95

**Significantly different from the corresponding black value at tht' 99-f)ercent confidence level.

'Based on earnings of full-time wage and salary workers.

11
Victor J. Oliveira

Data from the 10 counties indicate that the reasons for

not working differed significantly by race (table 6).

Nonworking whites were more likely than nonworking

blacks to report that they were not interested in paid

employment, while blacks were more likely than whites

to be nonworkers because they could not find jobs or

could not meet employers' hiring requirements.

The factors involved in explaining these differences by

race are presented in table 7. Two factors, age and

education, appear to be the major reasons that blacks

were more likely than whites to not work in 1981.

About one-third of the nonworking adult blacks were

16 to 24 years old, compared with only 16 percent of

the nonworking white adults. This result is due in part

to the younger age structure of the black population.

A larger percentage of the adult black nonworkers (25

percent) than adult white nonworkers (13 percent)

were still in school, and therefore less likely to be

employed.'2 Historically, young blacks have been

employed at significantly lower rates than young whites

(10, 12, 14).

'^Most (85 percent) of the white and black nonworkers still in

school in 198Î gave "not interested in paid employment" as the

main reason for not working in 1981.

Table 6—Reasons for not working by race, adult continuous

residents, 1981

While factors not considered in this study, such as

racial discrimination, may be important in explaining

the significantly greater percentage of blacks among

the area's nonworking adults, education also plays an

important role. Nonworking blacks had significantly

less schooling than nonworking whites. Seventy-eight

percent of the black nonworkers and 61 percent of the

Table 7—Characteristics of adult continuous resident

nonworkers, 1981

Characteristic

Adults not working

Men

Women

Age:

16 to 24 years

25 to 34 years

35 to 54 years

55 to 64 years

65 years and older

Average age

Nonworking adults/reason White Black bducation:

Less than high school

Number

High school

Beyond high school

Adults not working 32,560 19,730

Could not find work or could

not meet hiring requirement^

Percent

7.0** 15.6

Average years of

schooling completed

III health, disability 28.0 31.0 Attended school in 1981

Not interested in paid

employment 64,2** 51.3

Participated in a job

training program

Other2 .8 2.1 Worked in 1976, but

did network in 1981

White

32,560

27.8

72.2

16.4**

9.5

15.2

19.1**

39.8*

53.3*

Number

Percent

Years

Percent

61.5**

24.2*

14,3**

1,1'

15.1

Black

19,730

32.7

67.3

35.3

8.5

16.9

10.9

28.4

44.3

78.4

17.2

4.4

Years

9.8** 8.3

Percent

12.7* 24.5

3.71

14.4

**Significantly different from the corresponding black value at the

99-percent confidence level.

'includes unennployed persons.

^Includes persons on strike or persons expected to be recalled to

old job, and persons for whom transportation to work was not available. Estimate based on fewer than 10 unweighted observations.

Significantly different from the corresponding black value at the

95-percent confidence level.

♦♦Significantly different from the corresponding black value at the

99-percent confidence level,

'Estimate based on fewer than 10 unweighted observations.

12
Distribution of Rural Employment Growth by Race: A Case Study

nonworking whites did not complete high school. After

accounting for persons still in school in 1981, black

nonworkers averaged only 7.5 years of schooling compared with 9.6 years for whites. The educational levels

of both groups of nonworkers, however, were below

the levels of employed whites and blacks. Compared

with workers, nonworking adults also had lower levels

of job training and previous work experience. Only 15

percent of both the white and black nonworkers in

1981 worked in 1976.

The low levels of education, job training, and work experience suggest that many of these people are the

''hard-core" unemployed and those out of the labor

force. In fact, only 14 percent of the nonworking

whites and 37 percent of the nonworking blacks stated

that they intended to look for work in the next 12

months. Even for nonworking adults who wanted to

work, the outlook for employment for this group may

not be very good. Due to their lack of job skills and

low education levels, many nonworkers may not be

able to take advantage of job growth in occupations

that require even moderate levels of education or job

skills.

Inmigrants

Continuous residents are not the only ones affected by

an area's growth. Inmigrants from outside the area

compete with continuous residents for new jobs. If the

local unemployed have less education and work skills

than inmigrants, the inmigrants may take many of the

jobs associated with economic growth. As more highly

skilled inmigrants enter the area, the quality of the

labor supply improves, hiring requirements become

stricter, and those persons with low job skills and

education levels find themselves at an even greater disadvantage in the labor market (8). This situation may

in turn limit their entrance into high-wage jobs and

may actually crowd some groups out of the job market.

In this study, inmigrants are defined as persons who

moved into the 10-county area between January 1,

1976, and January 1982. Ninety percent of all inmigrants were white. Because of the small number of

black inmigrant observations, we did not attempt statistical tests of differences between black and white inmigrants (table 8).

Inmigrants were much more successful in the labor

market during 1981 than continuous residents were.

About 73 percent of the adult white inmigrants and 79

percent of the adult black inmigrants worked in 1981

compared with only 64 percent of the continuous

white residents and 51 percent of the continuous black

residents. While the sex composition of the area's emTable 8—Characteristics of employed inmigrants, 1981

Characteristic

Employed inmigrants

Average weeks worked

1981 workers who were

employed in 1976

Participated in a job

training program

Average weekly earnings^

White Black

Number

13,840

Percent

Number

44.2

78.7

25.4

280

Percent

Dollars

1,630

Men

Women

58.6

41.4

years

47.5^

52.5^

Average age 33.2

Percent

29.3

Education:

Less than high school

High school

Beyond high school

20.3

30.1

49.6

Number

14.5^

55.21

30.31

Average years of

schooling completed 13.2

Percent

12.5

Full-time wage worker^

Part-time wage worker

Self-employed worker

82.5

9,4

8.1

77.6

16.81

5.6'

42.2

80.2

14.8'

235

'Estimate based on fewer than 10 unweighted observations.

^Represents workers working 30 or more hours per week,

^Based on earnings of full-time wage and salary workers.

13
Victor J.OIiveira

ployed inmigrants closely resembed that of employed

continuous residents by race, the average age of employed inmigrants was younger than that of continuous

resident workers.'^ In terms of education, employed

inmigrants attained greater levels of schooling than

employed continuous residents. Inmigrants of both

races averaged more than 12 years of schooling. Employed inmigrants also had participated in job training

programs more often than employed continuous residents. These higher levels of education and training of

inmigrants were reflected in their average weekly

wages. White inmigrants earned $41 per week more

than employed white continuous residents, and black

inmigrants earned an average of $57 more than employed black continuous residents.

Results from the 10-county area parallel previous research which found inmigrants to be better educated,

have more training, and command higher salaries than

continuous residents (4, 8). These results have some

negative implications for blacks in the study area. First,

because inmigrants, both black and white, were able

to compete successfully with continuous residents for

jobs, employment benefits resulting from economic

growth are limited for continuous black residents in

the area; and some, who have few job skills, may actually be displaced from employment. Second, because

90 percent of all inmigrants into the area were white,

nonresident whites apparently took advantage of the

area's new job opportunities by migrating into the area

to a greater degree than nonresident blacks.

Summary of Labor Force Changes, 1976-81

The study area's adult population increased by 36 percent for whites and 29 percent for blacks between

1976 and 1981. Almost two-thirds of the increase in

white adults were recent inmigrants while recent inmigrants contributed only 21 percent of the increase in

black adults. The balance of the increase in adults

consisted of continuous residents reaching labor force

^^See table 4 for cliaracteristics of employed continuous residents. age sometime after 1976 (fig. 2).

Figure 2

Percent Change in Employment and Occupations,

by Race, 1976-81

Percent

100

80

60 -

40 -

20 -

Adults Employed Professional Technical Production

occupations^ occupations^ and related

occupations

1/ Includes executives,administrators, and managers. 2/ Includes marketing, sales, clerical, and service workers.

14
Distribution of Rural Employment Growth by Race: A Case Study

The number of employed persons increased by 48 percent for whites but only 22 percent for blacks. Blacks

actually lost jobs in relation to their increase in the

number of adults; that is, blacks' employment to population (E/P) ratio decreased. Black continuous residents

were responsible for most of this decline. Conversely,

the E/P ratio for white adults increased between 1976

and 1981; the percentage increase in the number of

employed whites was greater than the percentage increase in the number of white adults.

occupations in relation to blacks. The number of white

professionals increased by 28 percent compared with

less than 1 percent for blacks. Although the relative

weekly wage for employed whites and blacks stayed

about the same (black workers earned only about 75

percent of the earnings of white workers), annual income of blacks was adversely affected in relation to

annual income of whites because blacks worked significantly fewer weeks than whites in 1981, a result not

found in 1976.

Not only did whites outgain blacks in the number of

jobs, they also got more of the professional and technical jobs. The percent increase in the number of

white professionals was over four times greater than

that of blacks. Among blacks, most newly employed

professionals between 1976 and 1981 were inmigrants;

the number of black continuous residents who were

professionals increased by less than 1 percent. In contrast the number of employed white continuous residents in professional jobs increased 28 percent. Whites

also outgained blacks with respect to technical occupations. The percent increase in white technical

workers was over five times that of blacks.

Between 1976 and 1981, whites gained in the number

of jobs they held and in their domination of professional and technical occupations. Sixty-nine percent of

the increase in white employment was in the professional or technical fields compared with only 23 percent for blacks. Only in the relatively low-skill production occupations did employment increase at comparable rates for whites and blacks.

Conclusions

Whites in the 10-county study area benefited from

economic growth more than blacks did. A significantly

greater percentage of adult whites were employed in

1981 than were adult blacks, a result not found in

1976. Employment of white women increased the

most between 1976 and 1981, while the percentage of

black males who were employed actually decreased

over the period.

Within the group of residents living continuously in

the area in both 1976 and 1981, whites increased their

share of employment in the professional and technical

Inmigrants of both races were better able to compete

for new jobs than continuous residents were. However, most inmigrants were white. As these more

educated, more highly skilled inmigrants moved into

the area, the average education and skill levels of the

labor force increased. Less skilled continuous residents,

especially blacks, became relatively worse off than

before.

While the study did not measure the effect of racial

discrimination in the area, the low education levels of

many blacks is one factor in explaining their low labor

market position. Frequently, less educated persons are

not able to adapt to jobs requiring new and different

job skills to the same degree as better educated persons and they are not well suited to compete with better educated inmigrants for new jobs. Nonworking

blacks were more likely than nonworking whites to

want to work but could not find jobs or meet hiring

requirements. White nonworkers were more likely to

choose not to work.

Blacks need to increase their formal education in order

to better compete with whites for jobs in the study

area. Public investment in formal job training programs

may also help blacks move to higher wage jobs.

Employment opportunities resulting from economic

growth are not distributed equally among rural residents. If the purpose of rural development is to increase employment levels and incomes of the disadvantaged, then generaleconomic development alone

may not achieve the goal. Many persons are unable to

take advantage of increases in an area's job opportunities because of lower levels of schooling and job

skills. Therefore, better education and increased job

training may be necessary to distribute economic

benefits more equally.

15
Victor J.Oliveîra

14.

15.

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17
Economic Growth Is Good For Everyone. Right?

Not necessarily, according to recent findings from USDA's Economic Researcfi Service. Find

out from these related reports just what can happen when rapid economic growth comes to

a rural area.

Will Employment Growth Benefit All Households?

A Case Study In Nine Nonmetro Kentucky Counties, by Donald K. Larson and Claudia K. White.

SN: 001-019-00425-8.

Overall economic growth in a rural area will probably

not benefit all households or residents in that area.

In a nine-county area of south central Kentucky,

rapid employment growth between 1974 and 1979

did create new job opportunities. However, only 18

percent of the households had members who took

advantage of the new jobs. The employment growth

also did not reduce the area's overall poverty level.

About as many households fell into poverty as left

the poverty ranks during the study period. Some

population groups, such as households headed by

women, remained economically disadvantaged

despite the area's growth. Other groups, such as the

elderly, maintained their income status by relying on

public and private income transfer programs.

Distribution of Employment Growth in Nine Kentucky Counties: A Case Study, by Stan G.

Daberkow, Donald K. Larson, Robert Coltrane, and

Thomas A. Carlin.

SN: 001-019-00337-5.

Rapid employment growth between 1974 and 1979

in a nine-county study area of south central Kentucky provided job opportunities both for local

residents and for persons with limited labor force experience. But, recent inmigrants held a disproportionate share of better paying executive jobs. This

case study, which examines the distributional effects

of rapid employment growth in a nonmetro area,

shows that inmigrants also held a disproportionate

share of jobs in growing business establishments.

Although manufacturing was the major economic

force in the study area in January 1980, jobs in the

private service sector increased more than in other

sectors.

Distribution of Employment Growth in 10 Georgia

Counties: A Case Study, by James D.

Schaub and Victor J. Oliveira.

SN: 001-019-00412-6.

Rapid economic growth in a 10-county rural area in

south Georgia during 1976-81 favored employment

of whites, men, and inmigrants. They earned higher

average weekly salaries than blacks, women, and

long-term residents. This study of growth in a mixed

manufacturing- and agricultural-based economy flows

from a research project on the impacts of economic

expansion in nonmetro economies with different industrial bases. The Georgia area's job growth was

greatest in the trades and services sectors. Few

businesses used public sector funds to start or expand their operations. Government employed 25 percent of the area's wage and salary workers.

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