The Impact of Employer Characteristics and Workforce Commitment on Earnings of Former Welfare Recipients

Former welfare recipients have fared differentially in the 1990s. Some are now earning self-supporting incomes, whereas others remain in poverty despite work efforts. Still others have no recorded work involvement. In this article, the authors attempt to learn why. The vast majority of research studies to date on the employment and earnings outcomes of former welfare recipients have focused exclusively on the characteristics of the women recipients. This study is an exception: It focuses on the characteristics of the employers who chose to hire these former recipients. It asks two questions: One concerns the overall importance of employer characteristics in determining employment and earnings outcomes. The second explores the relative roles of various employer characteristics in determining earnings outcomes. The article also examines the effect on earnings of women’s commitment to work. This is the first comprehensive longitudinal examination of these topics.