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Why Do Small Establishments Hire Fewer Blacks than Large Ones?

Archived Abstract of Former PSC Researcher

Download PDF versionHolzer, Harry. "Why Do Small Establishments Hire Fewer Blacks than Large Ones?" PSC Research Report No. 96-374. December 1996.

In this paper we show that small establishments are much less likely to hire and employ blacks than are larger establishments. We consider a number of possible explanations for this result, such as differences across establishments in application rates from blacks, skill needs, locations, and recruiting behavior. While these factors can account for some of the differences between small and large employers, much remains unexplained. The results suggest that discrimination in hiring may be much more pervasive at smaller establishments than larger ones.

Dataset(s): Employer Survey, Multi-City Study of Urban Inequality (MCSUI): U.S., 1992-1994.

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