Factors affecting the utilization of manpower inrural and ...

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A69NCY POP INTERVNATIONAL DVEV~LOPMKNT FOR AID USE ONLY WANNINGTON. 0.-C. 2062S T BLIOGRAPHIC IPUT SHEET n . SUBJEICT TEMPORARY CLASSI- G. SEC €ONOARY FICATION 2. TITLE AND SUBTITLE Factors affecting the utilization of manpower in rural and urban areas 3. AUTHOR(S) Glasgow,R.B.; WilliamsT.T. 4. DOCUMENT DATE 15.'NUMBEROF PAGES G. ARC, UMBER 1976 62p.ft 7. REFERENCE ORGANIZATION NAME AND ADDRESS Southern 6. SUPPLEMENTARY NOTES (SponmorIn9.O.maf, PubUlshots, Avalfablifty) (In Staff papers ser.no . -- 9. ABSTRACT (Economics R&D) 10..CONTROL.NUMBER PN-AAC- 01.5 . . :i ", ". ! :- , .1. PRICE.OP DOCUMENT 12. I.I DESCRIPTORS PROJECT NUMBER 14. CONTRACT NUMBER ,,,CSD-3414 211(d) 15. TYPE OF DOCUMENT

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A69NCY POP INTERVNATIONAL DVEV~LOPMKNT FOR AID USE ONLY WANNINGTON 0-C 2062S

TBLIOGRAPHIC IPUT SHEET n SUBJEICT TEMPORARY

CLASSI-G SECeuroONOARYFICATION

2 TITLE AND SUBTITLE

Factors affecting the utilization of manpower in rural and urban areas

3 AUTHOR(S) GlasgowRB WilliamsTT

4 DOCUMENT DATE 15NUMBEROF PAGES G ARC UMBER

1976 62pft 7 REFERENCE ORGANIZATION NAME AND ADDRESS

Southern

6 SUPPLEMENTARY NOTES (SponmorIn9Omaf PubUlshots Avalfablifty) (In Staff papers serno -shy

9 ABSTRACT

(Economics RampD)

10CONTROLNUMBERbull PN-AAC- 015 i - 1 PRICEOP DOCUMENT

12II DESCRIPTORS PROJECT NUMBER

14 CONTRACT NUMBER

CSD-3414 211(d) 15 TYPE OF DOCUMENT

STAFF PAPERS SERIES

Unemployment and Underemployment Institute

T T Williams Director

INTERNATIONAL ECONOMIC DEVELOPMENT PROGRAM

Southern University and A ampM College Post Office Box 9846

Baton Rouge LA 70813

SERIES 101-76

VACTORS AFFECTING THE UTILIZATION OF MANPOWER IN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

SOUITERN UNIVERSITY

UNEMPLOYMENT-UNDEREMPLOYMENT INSTITUTE International Economic Development Program

P 0 Box 9846 Baton Rouge Louisiana 70813

FOREWORD

The Unemployment and Underemployment Institute was created to-coordinate all international economic development activities of the 211(d) grant at Southern University

In 1972 the Agency for International Development (AID) approved a five year grant to Southern University to strengthen and increase its capacity in economic

agricultural economics to enhance Southerns capabilities to contribute to the iZesolution of problems of rural unemployment and underemployment in developing countrieso

11Te general objectives of the Institute are (a) to develop and coordinate thL activities of the University for greater participation in international economic development programs (b) to make available the capacities and expertise thus deshyveloped to public and private agencies involved in industrial development programs and (c) to conduct research seminars and workshops on domestic and international

development problems including cooperatives manpower utilization small farmers

housing population nutrition leadership training and community development

In keeping with objective (a) the University supports several faculty members

working towards advanced degrees in the area of economic development and related

disciplines supports undergraduate scholarships to foreign and U S nationals in

the Department of Agricultural Economics and Ecoriomics provides Iravel to professshy

ional seminars for faculty and foreign exposure Lo development experiences and

special training on techniques of program design and evaluation

In keeping with objective (b) the Institute sponsors an International Developshy

meutt Seminar Series Student-Faculty amp Staff Seminar Series and hosts foreign

individuals and groups interested in economic development programs at Southern

University

Results of research projects consistent with the objectives of this program are

published under the Institutes Faculty-Staff Research Paper Series Papers publishshy

ed under this series reflects the diversity of interests and specialties-of our

faculty and staff

The above activities of the Institute demonstrate the capacities and expertise

of Southern University developed through the 211(d) program As a result of the

211(d) grant the Unemployment-Underemployment Institute at Southern University is

in a position to offer expert and technical personnel to private and public agencies

involved in international economic development programs

T T Williams

Director

FACTORS AFIECTING THE UTILIZATION OF MANPOWER

YN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

INTRODUCTION

This paper was extracted from a study in process of publication by the

Institute for International Economic Development at Southern University

titled Manpower Utilization and Development Need and Potential for Selectshy

ed Rural Areas with Comparison to Selected Low-Income Urban Areas

Following completion of the 1970 Census of Population the Bureau of

the Census undertook an employment survey for low income areas of 51 central

cities of metropolitan areas and seven multi-county low income rural areas

The seven rural areas are located in nine states since one of the areas-shy

Appalachia-includes contiguous counties located in Kentucky Virginia and

West Virginia The other states in which rural areas are located are

Alabama Arkansas California Missouri New Mexico and North Carolina

The New Mexico area included the Zuni Indian Reservation and a separate

enumeration was made for the reservation As a result of this fact eight

reports were issued for the seven rural areas The locations of the seven

low income rural areas are shown in figures 1 through 7

The Census Employment Survey of low income areas makes available inshy

formation on manpower characteristics and utilization which is nowhere else

available This information has for the most part uot been analyzed elseshy

where

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GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

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Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

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Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

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The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 2: Factors affecting the utilization of manpower inrural and ...

STAFF PAPERS SERIES

Unemployment and Underemployment Institute

T T Williams Director

INTERNATIONAL ECONOMIC DEVELOPMENT PROGRAM

Southern University and A ampM College Post Office Box 9846

Baton Rouge LA 70813

SERIES 101-76

VACTORS AFFECTING THE UTILIZATION OF MANPOWER IN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

SOUITERN UNIVERSITY

UNEMPLOYMENT-UNDEREMPLOYMENT INSTITUTE International Economic Development Program

P 0 Box 9846 Baton Rouge Louisiana 70813

FOREWORD

The Unemployment and Underemployment Institute was created to-coordinate all international economic development activities of the 211(d) grant at Southern University

In 1972 the Agency for International Development (AID) approved a five year grant to Southern University to strengthen and increase its capacity in economic

agricultural economics to enhance Southerns capabilities to contribute to the iZesolution of problems of rural unemployment and underemployment in developing countrieso

11Te general objectives of the Institute are (a) to develop and coordinate thL activities of the University for greater participation in international economic development programs (b) to make available the capacities and expertise thus deshyveloped to public and private agencies involved in industrial development programs and (c) to conduct research seminars and workshops on domestic and international

development problems including cooperatives manpower utilization small farmers

housing population nutrition leadership training and community development

In keeping with objective (a) the University supports several faculty members

working towards advanced degrees in the area of economic development and related

disciplines supports undergraduate scholarships to foreign and U S nationals in

the Department of Agricultural Economics and Ecoriomics provides Iravel to professshy

ional seminars for faculty and foreign exposure Lo development experiences and

special training on techniques of program design and evaluation

In keeping with objective (b) the Institute sponsors an International Developshy

meutt Seminar Series Student-Faculty amp Staff Seminar Series and hosts foreign

individuals and groups interested in economic development programs at Southern

University

Results of research projects consistent with the objectives of this program are

published under the Institutes Faculty-Staff Research Paper Series Papers publishshy

ed under this series reflects the diversity of interests and specialties-of our

faculty and staff

The above activities of the Institute demonstrate the capacities and expertise

of Southern University developed through the 211(d) program As a result of the

211(d) grant the Unemployment-Underemployment Institute at Southern University is

in a position to offer expert and technical personnel to private and public agencies

involved in international economic development programs

T T Williams

Director

FACTORS AFIECTING THE UTILIZATION OF MANPOWER

YN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

INTRODUCTION

This paper was extracted from a study in process of publication by the

Institute for International Economic Development at Southern University

titled Manpower Utilization and Development Need and Potential for Selectshy

ed Rural Areas with Comparison to Selected Low-Income Urban Areas

Following completion of the 1970 Census of Population the Bureau of

the Census undertook an employment survey for low income areas of 51 central

cities of metropolitan areas and seven multi-county low income rural areas

The seven rural areas are located in nine states since one of the areas-shy

Appalachia-includes contiguous counties located in Kentucky Virginia and

West Virginia The other states in which rural areas are located are

Alabama Arkansas California Missouri New Mexico and North Carolina

The New Mexico area included the Zuni Indian Reservation and a separate

enumeration was made for the reservation As a result of this fact eight

reports were issued for the seven rural areas The locations of the seven

low income rural areas are shown in figures 1 through 7

The Census Employment Survey of low income areas makes available inshy

formation on manpower characteristics and utilization which is nowhere else

available This information has for the most part uot been analyzed elseshy

where

-2-

GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 3: Factors affecting the utilization of manpower inrural and ...

SERIES 101-76

VACTORS AFFECTING THE UTILIZATION OF MANPOWER IN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

SOUITERN UNIVERSITY

UNEMPLOYMENT-UNDEREMPLOYMENT INSTITUTE International Economic Development Program

P 0 Box 9846 Baton Rouge Louisiana 70813

FOREWORD

The Unemployment and Underemployment Institute was created to-coordinate all international economic development activities of the 211(d) grant at Southern University

In 1972 the Agency for International Development (AID) approved a five year grant to Southern University to strengthen and increase its capacity in economic

agricultural economics to enhance Southerns capabilities to contribute to the iZesolution of problems of rural unemployment and underemployment in developing countrieso

11Te general objectives of the Institute are (a) to develop and coordinate thL activities of the University for greater participation in international economic development programs (b) to make available the capacities and expertise thus deshyveloped to public and private agencies involved in industrial development programs and (c) to conduct research seminars and workshops on domestic and international

development problems including cooperatives manpower utilization small farmers

housing population nutrition leadership training and community development

In keeping with objective (a) the University supports several faculty members

working towards advanced degrees in the area of economic development and related

disciplines supports undergraduate scholarships to foreign and U S nationals in

the Department of Agricultural Economics and Ecoriomics provides Iravel to professshy

ional seminars for faculty and foreign exposure Lo development experiences and

special training on techniques of program design and evaluation

In keeping with objective (b) the Institute sponsors an International Developshy

meutt Seminar Series Student-Faculty amp Staff Seminar Series and hosts foreign

individuals and groups interested in economic development programs at Southern

University

Results of research projects consistent with the objectives of this program are

published under the Institutes Faculty-Staff Research Paper Series Papers publishshy

ed under this series reflects the diversity of interests and specialties-of our

faculty and staff

The above activities of the Institute demonstrate the capacities and expertise

of Southern University developed through the 211(d) program As a result of the

211(d) grant the Unemployment-Underemployment Institute at Southern University is

in a position to offer expert and technical personnel to private and public agencies

involved in international economic development programs

T T Williams

Director

FACTORS AFIECTING THE UTILIZATION OF MANPOWER

YN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

INTRODUCTION

This paper was extracted from a study in process of publication by the

Institute for International Economic Development at Southern University

titled Manpower Utilization and Development Need and Potential for Selectshy

ed Rural Areas with Comparison to Selected Low-Income Urban Areas

Following completion of the 1970 Census of Population the Bureau of

the Census undertook an employment survey for low income areas of 51 central

cities of metropolitan areas and seven multi-county low income rural areas

The seven rural areas are located in nine states since one of the areas-shy

Appalachia-includes contiguous counties located in Kentucky Virginia and

West Virginia The other states in which rural areas are located are

Alabama Arkansas California Missouri New Mexico and North Carolina

The New Mexico area included the Zuni Indian Reservation and a separate

enumeration was made for the reservation As a result of this fact eight

reports were issued for the seven rural areas The locations of the seven

low income rural areas are shown in figures 1 through 7

The Census Employment Survey of low income areas makes available inshy

formation on manpower characteristics and utilization which is nowhere else

available This information has for the most part uot been analyzed elseshy

where

-2-

GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

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-58-

SELECTED RURAL COUNTIES IN M

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SELECTED RURAL COUNTIES IN NEW MEXICO

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-60-

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 4: Factors affecting the utilization of manpower inrural and ...

SOUITERN UNIVERSITY

UNEMPLOYMENT-UNDEREMPLOYMENT INSTITUTE International Economic Development Program

P 0 Box 9846 Baton Rouge Louisiana 70813

FOREWORD

The Unemployment and Underemployment Institute was created to-coordinate all international economic development activities of the 211(d) grant at Southern University

In 1972 the Agency for International Development (AID) approved a five year grant to Southern University to strengthen and increase its capacity in economic

agricultural economics to enhance Southerns capabilities to contribute to the iZesolution of problems of rural unemployment and underemployment in developing countrieso

11Te general objectives of the Institute are (a) to develop and coordinate thL activities of the University for greater participation in international economic development programs (b) to make available the capacities and expertise thus deshyveloped to public and private agencies involved in industrial development programs and (c) to conduct research seminars and workshops on domestic and international

development problems including cooperatives manpower utilization small farmers

housing population nutrition leadership training and community development

In keeping with objective (a) the University supports several faculty members

working towards advanced degrees in the area of economic development and related

disciplines supports undergraduate scholarships to foreign and U S nationals in

the Department of Agricultural Economics and Ecoriomics provides Iravel to professshy

ional seminars for faculty and foreign exposure Lo development experiences and

special training on techniques of program design and evaluation

In keeping with objective (b) the Institute sponsors an International Developshy

meutt Seminar Series Student-Faculty amp Staff Seminar Series and hosts foreign

individuals and groups interested in economic development programs at Southern

University

Results of research projects consistent with the objectives of this program are

published under the Institutes Faculty-Staff Research Paper Series Papers publishshy

ed under this series reflects the diversity of interests and specialties-of our

faculty and staff

The above activities of the Institute demonstrate the capacities and expertise

of Southern University developed through the 211(d) program As a result of the

211(d) grant the Unemployment-Underemployment Institute at Southern University is

in a position to offer expert and technical personnel to private and public agencies

involved in international economic development programs

T T Williams

Director

FACTORS AFIECTING THE UTILIZATION OF MANPOWER

YN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

INTRODUCTION

This paper was extracted from a study in process of publication by the

Institute for International Economic Development at Southern University

titled Manpower Utilization and Development Need and Potential for Selectshy

ed Rural Areas with Comparison to Selected Low-Income Urban Areas

Following completion of the 1970 Census of Population the Bureau of

the Census undertook an employment survey for low income areas of 51 central

cities of metropolitan areas and seven multi-county low income rural areas

The seven rural areas are located in nine states since one of the areas-shy

Appalachia-includes contiguous counties located in Kentucky Virginia and

West Virginia The other states in which rural areas are located are

Alabama Arkansas California Missouri New Mexico and North Carolina

The New Mexico area included the Zuni Indian Reservation and a separate

enumeration was made for the reservation As a result of this fact eight

reports were issued for the seven rural areas The locations of the seven

low income rural areas are shown in figures 1 through 7

The Census Employment Survey of low income areas makes available inshy

formation on manpower characteristics and utilization which is nowhere else

available This information has for the most part uot been analyzed elseshy

where

-2-

GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

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-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 5: Factors affecting the utilization of manpower inrural and ...

FACTORS AFIECTING THE UTILIZATION OF MANPOWER

YN RURAL AND URBAN AREAS

BY

Robert B Glasgow and T T Williams

INTRODUCTION

This paper was extracted from a study in process of publication by the

Institute for International Economic Development at Southern University

titled Manpower Utilization and Development Need and Potential for Selectshy

ed Rural Areas with Comparison to Selected Low-Income Urban Areas

Following completion of the 1970 Census of Population the Bureau of

the Census undertook an employment survey for low income areas of 51 central

cities of metropolitan areas and seven multi-county low income rural areas

The seven rural areas are located in nine states since one of the areas-shy

Appalachia-includes contiguous counties located in Kentucky Virginia and

West Virginia The other states in which rural areas are located are

Alabama Arkansas California Missouri New Mexico and North Carolina

The New Mexico area included the Zuni Indian Reservation and a separate

enumeration was made for the reservation As a result of this fact eight

reports were issued for the seven rural areas The locations of the seven

low income rural areas are shown in figures 1 through 7

The Census Employment Survey of low income areas makes available inshy

formation on manpower characteristics and utilization which is nowhere else

available This information has for the most part uot been analyzed elseshy

where

-2-

GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

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for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

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comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

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and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

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Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

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The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

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A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

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SUC

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CENSUS

EMPLOYM

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AREA

APPL

AC

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2

LU

gt

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o

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lzol

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

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I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

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vvmwc -

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-58-

SELECTED RURAL COUNTIES IN M

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State Showing Census Employment Survey Area

W

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SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

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J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 6: Factors affecting the utilization of manpower inrural and ...

-2-

GENERAL EMPLOYMENT CHARACTERISTICS AND TRENDS 1

In the United States 96 percent of employment was nonfarm in 1970

this was up from 94 percent in 1962 Of this nonfarm employment nine out

of 10 were wage and salary workers The remaining 10 percent were selfshy

employed and nonpaid family workers (Table 1)

With the exception of the Applachian and New Mexico areas which have

percentages of farm employment lower than the U S average of four percent

farm employment accounts for substantially higher percentages of total emshy

ployment in our rural study areas than in the country as a whole In 1970

these percentages ranged from 34 in the California area to about 10 in the

Alabama area Employment on farms is however declining as a percentage

of total employment in all study areas Only for the California area did

the absolute number employed on farms increase between 1962 and 1970

As is the case for the United States as a whole nonfarm employment in

all areas is comprised predominately of wage and salary workers and in the

case of all areas the wage and salary workers increased as a percentage of

all nonfarm mployment betweer 1962 and 1970 Except for the Appalachian

and New Mexico areas however wage and salary workers are a smaller proshy

portion of the total nonfarm work force than is the case for the country as

a whole The difference is accounted for by the still relatively large

proportions of nonfarm employed in these areas who are either self-employed

or are nonpaid family workers For the study areas the proportions of nonshy

farm employed found among self-employed and nonpaid family workers range

from 11 percent in Appalachia and New Mexico to almost 27 percent in

l The data upon which this section is based were assembled from

State Employment Security Agencies by Claude C Haren of the Economic Reshy

search Service USDA

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

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SEKECTED RURAL COUNTIES IN CALIFORNIA

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 7: Factors affecting the utilization of manpower inrural and ...

-3-

Table 1 Average annual employment by broad categories for rural census employment areas 1962 and 1970 with comparisons to the United States

Rural employment Total Percent Total nonfarm Wage and Other nonfarm survey area employed Farm Nonfarm employed salary workers employed

I I I I S __ _ _ ___ __ _ I I I I

Number Number Percent Percent

Alabama 1970 40950 102 898 36760 744 256 1962 34380 190 810 27830 660 340

Appalachia 1970 68502 24 976 66846 893 1017 1962 63114 37 963 60810 1863 137

Arkansas 1970 90100 173 827 74475 782 218

1962 79150 285 715 56600 728 272

California 1970 48840 342 658 32120 847 153 1962 40040 389 611 24450 822 178

Missouri 1970 29140 186 814 23730 88 12L2 1962 24420 262 738 18030 715 28 5

New Mexico 1970 44059 33 967 42595 890 41O 1962 23687 54 946 33758 859 141

North Carolina 1970 239690 150 850 203620 846 154

1962 179260 285 715 128260 8241 176

United States

1970 1 81756 39 961 78558 898 102 1962 i 68210 63 937 63911 869 131

1 Numbers in thousands Source Economic Development Division Economic Research Service

USDA from data of State Employment Security Agencies

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 8: Factors affecting the utilization of manpower inrural and ...

Alabama The fact will be noted however that forall areas these pershy

centages decreased markedly between 1962 and 1970

The comparatively high proportions of presently employed nonfarm workers

found in categories other than wage and salary workers would find amongthis

category a valuable and significantly large source of manpower

INDUSTRIAL COMPOSITION OF EMPLOYMENT

The idea is frequently advanced that a major problem16r low-income

areas is that they have poor induatrial compositions that iamp_a prepondershy

ance of relatively low wage paying industries We have developed for our

rural study areas and comparative cities distributions of wage and salary

workers by major industries and havelcalculated for ales andfemales in

each area an index of the economic qualLty of industrial composition The

results are shown in Tables i and 2 of the Appendix

The indices were calculated by weighting the percent distrubutionsof

employment by the U S median earnings of the appropriate sex and exshy

pressing the aggregate resulting as a percentageof an aggregatefor the

United States which was obtained by the same procedure The results show that for men inour rural areas the industrial

icomposition of employment is as good or better than the national average

in all areas except Arkansas and California In each of these two areas

the index is 87 The reason for the low index in these two areas is the

relativelyhigh proportion of employment in agriculture forestry and

fisheries This industry has a quite low national median income

In the instance of women only two rural areas Appalachia and

Missouri have an index of 100 or more although it will be noted that the

New Mexico area at 997 is virtually at the national norm The indexes

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

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SELECTED RURAL COUNTIES IN ARKANSAS

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 9: Factors affecting the utilization of manpower inrural and ...

-5shy

for the other four areas are not extremely -1ow They range from 93 to 97

In the Arkansas California and North Carolina areas the lower indexes

appear to result mainly from relatively high proportions of employment in

the agriculture forestry and fisheries industry In Alabama the cause

may be the rather high employment in personal services

For the low income areas of our eight comparative cities the industrial

quality index for men is higher than the U S norm (1000) in seven of the

eight and in the instance of Birmingham Alabama with an index of 998 is

practically at the U S average

For women wage and salary workers in the cities the industrial

composition is not so favorable In only Cincinnati New York City and

St Louis is the index equal to or better than the national norm In

Phoenix and Oakland the indexes at 98 are not much below the norm In

none of the other three cities however does the index reach 90 The

actual indexes are 755 for Birmiigham 851 for Charlotte and 866 forl

Memphis

On the whole the industrialquality indexes are a little better for

men in the cities than in the rural areas while for women the reverseshy

appears to be true For women workers in most areas and for men in a few

it appears that development planning for expanded employment opportunities

should endeavor to upgrade the present industrial mix

UNEMPLOYMENT

Unemployment is of course the most dramatic form of failure to

utilize manpower resources The belief is still widespread that unemployshy

ment is generally less severe in rural than in metropolitan areas This

belief is valid however only in situations where a preponderance of the

work force are self-employed as either farmers or in other businesses and

professions

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

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I-FIGU

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5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

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TIES IN

NORTH

CARO

LINA

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CARZOLll A-FIG

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6

Sta

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hovin

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ensus E

mploym

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 10: Factors affecting the utilization of manpower inrural and ...

In our rural study areas unemployment of women wage and salary workers

was higher than the 63 percent national average for the fall quarter of

1970 (the period of survey enumeration) in seven of the eight areas The

area of exception was the Zuni Reservation In the instance of men workers

four of our areas had unemployment rates higher than the 49 percent U S

average four had rates lower than this The details for both men and women

are shown in Appendix Table 3 The fact will be noted that the unemployment

rate for Negroes both male and female is shown to be about twice as high

as that for whites in the three areas (Alabama Arkansas and North Carolina)

for which such statistics are available Negro unemployment has of course

traditionally been higher than that for whites in the country at large

For example in the fourth quarter of 1970 the approximate time of the

Census Employment Survey national average unemployment for white males was

45 percent compered to 77 percent for Negroes In the instance of women

the comparable figures are 58 percent for whites and 95 percent for Negroes

For comparative purposes unemployment data of the same type as that

for our rural study areas are presented in Appendix Table 4 for the low

income areas of eight selected cities that were included in the Census Emshy

ployment Survey For the total of all men as well as women the unemployment

rate was substantially above the national average n each of these eight

cities It may also be noted that only in Charlotte and Cincinnati was the

employment rate for white males below the national average for all races

White women had rates below the national average only in Charlotte and St

Louis

Unemployment is therefore seen to be substantial in both the rural

study areas and in the low income enclaves of the cities selected for

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

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-58-

SELECTED RURAL COUNTIES IN M

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SELECTED RURAL COUNTIES IN NEW MEXICO

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-60-

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 11: Factors affecting the utilization of manpower inrural and ...

-7shy

comparison On balance however the cities appear to have more severe

problems of unemployment as revealed by the data of these two tables

The relative severity of unemployment cannot however be judged very

accurately by rates that weight equally all persons in the labor force In

order to shed some additional light on the relative severity of unemployment

the data of table 2 were developed For this table the percent distrishy

butions of the age groups listed in Appendix Tables 3 and 4 were weighted by

U S median incomes for all races for the appropriate age and sex group

The aggregate of this weighting process was then expressed as a percentage

of the aggregate resulting from weighting Lhe U S distribution by age

groups for all races and by the U S median income for all races of each

age-sex group The resultant index numbers have as a base or 1000 the

aggregate resulting from this weighting of the percent distribution by age

of national unemployment for all races by sex by the appropriate national

median income for all races

The results modify to an appreciable extent earlier indicators of the

relatively greater severity of unemployment among Negroes than whites This

indicates that relatively larger proportions of unemployed Negroes than of

whites are found in ages with relatively low earnings

The fact will also be noted that the index of relative severity alters

the picture of comparative unemployment between rural study areas For

example the economic severity of uemployment among males in Missouri New

Mexico and the Zuni Reservation is greater than in California which has a

substantially higher overall unemployment rate than either of these three

areas For women also the economic severity index drops the California

area from highest according to the overall rate to third highest when conshy

sidered from the stndpoint of economic severity Women of both the Missouri

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

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5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

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j -

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a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

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NORTH

CARO

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ensus E

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 12: Factors affecting the utilization of manpower inrural and ...

Table-2 --Index of the economic severity of unemployment 1970 by sex ad race for all rural areas and selected cities included in the census employment survey -

Rural areas and cities All races White Negro White Spanish Other White

Male Female Male Female Male Female Male Female Male Female

Rural areas

Alabama 756 889 980 1008 642 834 - - -Appalachia 801 890 - - - -Arkansas 906 958 1028 1025 829 900 - - -

California Missouri

1032 1098

972 1025

1031 -

981 -

-

- - --

- -

-

New Mexico 1056 964 - - -9- 912 1044 i1051 North Carolina 822 729 100 -shy ~-Zuni Reservation New Mexico 1074 1260 975 940 1057 ---

Cities

Birmingham Alabama 921 936 1048 1001 890 920-- - - -

Phoenix Arizona 1109 953 shy - - 96 902 -]178 991 Oakland California 1168 1076 1137 911 1170 1123 -

St Louis Missouri 1041 926 1117 915 1021 92 - -

-

- 47 New York City New York 1053 1031 - - 1007 1009 1036 1070 1122 1047 Charlotte North Carolina 908 886 743 922 943 879 - _ Cincinnati Ohio 956 678 897 940 976 838 -Memphis Tennessee 840 918 - - R27 925 -

U S percent distribution by age groups weighted by median earnings = 100 Source Developed from Census Employment Survey data and Median earnings data from Current Population Reports Series P-60 Number 80 October 1971

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

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I-FIGU

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5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 13: Factors affecting the utilization of manpower inrural and ...

-9shy

and Zuni areas experience more economically severe unemployment than those-

in the California area

DISCOURAGED WORIERS OR HIDDEN UNEMPLOYMENT

There has been considerable interest in recent years in measuring the

extent and assessing the significance of hidden unemployment These are

persons of labor force age who are not in the labor force because they think

or know that no employment is available to them The Census Employment

Survey asked questions to determine the extent of this phenomenon For this

paper we have taken the most conservative approach to discouraged workers

or hidden unemployment The only ones counted as discouraged workers are

those who responded that they wanted a job now and that the reasons they were

not looking was that they believed no work was available or they had been

unable to find any work

The resultant percentages of the adjusted civilian labor force are

presented in Tables 3 and 4 For most groups itwill be seen that hidden

unemployment while not extremely high is a significant factor of convenshy

tionally defined unemployment The concept is additive with unemployment

percentages when each is expressed as a percent of the adjusted civilian

labor force (which is the regularly defined civilian labor force plus those

counted as discouraged workers)

Hidden unemployment isinalmost all instancesshown to be much more

severe among women than men In part this probably stems from the always

large number of respondents among women who are wives of family heads

Such persons may genuinely want employment but when job finding is quite

difficult they find it more economically feasible to drop out of the labor

force than would an unreleated individual or a family head

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

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-58-

SELECTED RURAL COUNTIES IN M

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SELECTED RURAL COUNTIES IN NEW MEXICO

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-60-

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 14: Factors affecting the utilization of manpower inrural and ...

The rates of hidden unemployment for the rural study areas and the

low income sectiuns of our comparison cities will be seen not to differ

dramatically That the rates are much the same in major cities as in rural

areas suggests that the labor market in the cities may not be functioning

markedly better than in rural areas -- an assumption frequently made Zi

endeavoring to explain rural-urban income differentials

In an effort to shed a bit more light on some characteristics of

discouraged workers the data of Table 5 were developed It will be seen

that especially among men the discouraged workers are heavily concentrated

among the most youthful and the least educated It is also noteworthy

that relatively few family heads are among these persons either men or

women

Among discouraged women workers there is much less concentration ac

the lowest educational levels and much larger percentages are found among

the most productive age groups In most instances two-thirds or more of

these women are wives of family heads

INVOLUNTARY PART-TIME WORKERS

Another aspect of manpower utilization that is significant for

development planning is che percent of persons in the labor force who are

involuntarily working only part-time Information of this type is also

available in Tables 3 and 4

In our rural study areas the percentages involuntarily working partshy

time generally approach or exceed the unemployment rate for both Negro men

and women For white men the involuntary part-time rate exceeds or approaches

the unemploymenr rate in the Alabama Missouri and North Carolina areas

In the Alabama California and Missouri areas white women working inshy

voluntarily at part-time jobs are approximately the same or larger in number

as those who are unemployed

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

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-58-

SELECTED RURAL COUNTIES IN M

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SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

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-60-

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 15: Factors affecting the utilization of manpower inrural and ...

Table 3 -Discouraged workers and wage and salary workers involuntarily working part-time rural census employment survey areas

uraI ensus Percent of adjusted civilian labor force 1nouarywoig

emlymn suve Discouraged workers Involuntarily workingemployment survey part-time area and race Male Female Male Female

Alabama All races 8 38 48 88 T-hite 7 16 33 61

Negro 8 59- 68 113

Appalachia All races 22 13Q 36 43

Arkansas All races 04 55 34 67 White 0 0i1 24 1 6 3 8 Negro 13 107 73 111

California All races 07 36 52 88

Missouri All races 07 77 50 99

New Mexico All races 26 83 33 58

North Carolina All races 05 31 61 72 White 03 20 40 51Negro 1 58 117 119

Zuni Reservation kil races 23 13 18 9

1 Adjusted civilian labkrforce is conventionally uefined labor force plus Discouraged workers not in labor force Census Employment SurveyVolume PHO(3)-74

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

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I-FIGU

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5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

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NORTH

CARO

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CARZOLll A-FIG

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E

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Sta

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ensus E

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 16: Factors affecting the utilization of manpower inrural and ...

-12-

Table 4--Discouraged workers and wage and salary workers involuntarily working part-time low income sections of specified cities included

in census employment survey 1970

Percent of adjusted civilian labor force 1 City Involuntarily working

pari e Discouraged workers part-timeand Race Male Female Male Female

Birmingham Alabama All races 1 19 63 36 50 White s 46 50 19 27 Negro 22 68 44 60

Cincinnatti Ohio All races 22 70 34 32 White t 15 50 32 28

N 25 -0 36 34

Charlotte NC All 57 33 47 White 9 30 27 27 Negro 12 63 35 52

Memphis Tenn All races q 25 73 36 58 Negro bull 28 82 39 64

New York NY All r 16 6 16 31 White Spanish 20 02 14 29 Other white 09 26 18 30 Negro 18 58 18 32

Oakland California All races 36 104 39 72 White 24- 86 33 56 Negro 4 5 11 1 4 5 77

Phoenix Ariz All races 13 56 525 White Spanish 10 82 55 81 Other white 11 36 48 44

St Louis Missouri 43 45All races 22 55

White 14 57 64 32

Negro 25 54 33 48

l The adjusted civilian labor forceis the regularly defined labor force plus the number of discouraged workers SouKce Census Employment

Volume PHC(3) 74

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

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TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

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ensus E

mploym

oent Survey A

rea

I

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bull

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-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 17: Factors affecting the utilization of manpower inrural and ...

-------------------

Table 5 -13-

Percent distribution by specified characteristics of persons who want work now but arenot in labor force because they think no work is available low-income rural census of employment areas t970

Age Alabama Appalachia Arkans-asfamily status Male - Female Male Female Mahl Female educational attainment Negro White Negro White All All Negro White Negro White races races

Percent---------------------------------Age total 1000 1000 1000 1000 lfl0 1000 1000 1000 1000 1000

16-21 in school 550 478 1 072 -- 104 407 72 3216-21 not in school 180 80 205 218 333 189 331 500 145 13422-34 180 - 273 218 148 295 171 153 14035-44

- 95 400 106 227 200 22045-54 97 177 109 178 208 185 23755-64 90 345 178 55 131 71 91 500 245 236

Family status lTotal 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Family head -- 475 82 122 272 64 308 500 169 253Wife of head 619 633 -- 758 621 678Other family members 1000 152 249 245 660 157 692 500 157 69unrelated individuals -- 373 50 -- 68 21 53 --

Educational attainment 1Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Less than 8 years 250 695 267 184 368 282 430 500 469 2128 years -- 152 152 184 293 166 288 -- 1739-11 years 250 -- 370 258 116 318

142 282 -- 292 285

12 years 250 153 129 252 154 202 38 36113 years or more 250 - 82 122 69 32 -- 500 28 -shy

1 Persons 16 to 64 years of age and not in school Source Developed from 1970 Census Employment SurveyVolumes PHC(3) - 74

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 18: Factors affecting the utilization of manpower inrural and ...

-14-

The data for our comparison cities indicate that involuntary partshy

time schedules are a significant problem in these low income areas of

cities In general the involuntary part-time rates for men in the cities

is as high or higher than in rural areas For metropolitan women the

rates are generally only slightly less than in our rural areas Involuntary

part-time schedules are therefore a significant problem

ECONOMIC INDICES OF FACTORS INFLUENCING EARNING CAPACITIES OF WAGE AND SALARY WORKERS

There is probably a virtual concensus of judgment at least among

development economists that in an enterprise economy at any given time

there will be area and regional differentials in income stemming from

variations in the quantity and quality of economic resources available It

does not always seem to be recognized however that earningss the prepondershy

ant source of income in the United States can logically be expected to vary

among population groups in response to differentials in the quality of the

earning capacity of manpower resources which comprise the various populations

In an effort to quantify the probable effects upon earnings capacity

of specific manpower attributes and use characteristics for our rural study

populations the data presented in Tables 6 and 7 have been developed This

is an endeavor to estimate in quantitive terms tne influence upon the

earning capacity of wage and salary workers in our study populations of

their distributions with respect to levels of educational attainment

occupational structure age structure and number of weeks worked during the

year

Each number in these tables represents the estimated percentage of

the national median earnings of all wage and salary workers of the same sex

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 19: Factors affecting the utilization of manpower inrural and ...

which would be warranted as median earnings for the particular population

if they were remunerated the same as persons having the identical distrishy

bution characteristics with respect to the specified attribute eg

educational attainment are remunerated in the economy as a whole For

example the number 974 in Table 6 opposite the line white males in the

Alabama axea and in the column headed educational attainment means that

it is estimated that the educational attainment distribution of these men

would warrant their having median earnings of 974 percent of the national

median earnings of all male wage and salary workers

The procedure for developing these indices of factors affecting earning

capacities is as follows

1 A national percentage distribution is developed for wage and

salary workers of each sex for each attribute eg

occupational structure

2 The percent distribution for any attribute is then weighted by

multiplying each percentage of the distribution by the

appropriate national median earnings of persons represented

by the particular percentage of the distribution For example

in an occupational distribution the percentage representing

professional technical and kindred workers would be multiplied by the national median earnings of the approprLace

sex in this occupation

3 The results of weighting each percentage in each national

distribution are then summed for each attribute distribution

This number for each distribution becomes the national norm or

1000

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 20: Factors affecting the utilization of manpower inrural and ...

-16shy

4 Percentage distributions for each attribute are developed

for each sex-race group in each study area and these

percent distributions are weighted by the same national

median earnings figures discussed under (2) above and the

results of the weightings are summed for the percent

distributions of each attribute for each sex-race group

5 The numbers resulting are divided by the national number (3)

above for the relevant attribute The percentages thus

obtained are the economic indices displayed in Tables 6 and 7

The indices themselves show some significant patterns One that may

be noted at this point is the almost uniformly rather low indexes for

educational attainment and occupational structure for both Negro males and

females in the three rural study areas for which separate data are available

for Negroes

To really analyze the effect of these various index levels for

different attributes we need a method of combining them to give an overshy

all picture This task is undertaken in the following section where the

indices of Tables 6 and 7 are used to develop measures of the economic

utilization of wage and salary workers in our rural study areas and

comparison cities

RELATIVE ECONOMIC UTILIZATION OF EMPLOYED WAGE AND SALARY WORKERS

In many areas of a diverse complex economy such as that of the United

States underutilization of employed manpower may be as or more important

as an economic and social indicator as unemployment hidden unemployment

or involuntary part-time schedules for workers

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

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bull

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Page 21: Factors affecting the utilization of manpower inrural and ...

Table ab

-poundcono~dc Indexes of selected factors Influencing earningtcpacities of wne and saliryworkers in rurl cenaus e=ployment survey areas 1970 1

Rural census eply- Economic index ofment surveyareas Rural census employ-Educational Occupational oAge Work sex arare Educational Occupational Age Work sex and race attainma structure structure experience sex and race

White Spanish a 1007

Alabna=_ Nales

Females

White Fegro

White Negro

=

974 747

1021 850

1089 793

1118 692

983 880

-996 959

1086 967

1195 1047

Missouri ales- Females

s NewMexico

All races All races

F

909 993

ucture

979 982

structurQ experie

993 l00c 976 1057

A--ila-cth

Females All races All races

844 1028

981 1003

959 943

1030 1020

t

ales

Females

All races Wte Spanish s All races a

1002 945

1092

1023 955

1048

962 941 922

1045 1051 1002

929 894 990 Arkansas

1lcs White a CarolinaNorth957 980 973Negro a 1068 ale White 965690 636 1058 961889 827 1061 Negro - 792 729 860Females White 9171022 1064 975 1111 Females WhIteNegro 755 528 1067 1067 949 1097969 802 Negro 898 696 931 861

Cafrnia 1laies All raceb Zuni Reservation979 874 930 968 Males All rates 933 1079 914 98SWhite 981 882 932 981 Females All races 864 1105Females Allraces a 1056 940 928

895 1059 849

White 1056 949 930 848

) US index for male wage and salary workers of all races - 100 for maleaUS Index for female wage and salary workers of all races shy 100 for females

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

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I-FIGU

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5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

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bull

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 22: Factors affecting the utilization of manpower inrural and ...

ablep7 -Economic indek of factors knfiincinthe eaza icapacit age and-aay- orknrr I 414 homue areas ofInc apecfie4 4tlbs 1970 l

Econogmf index oft bull conomic indox of City sex race EducationalOccupational a Age t Work City sex race Educational Occupational Age Work

attainment structure structure expeience attalnunent structure structure expert

Bir-hn-n Alabama YLvw York Ct N-- York Vales White 952 1033 953 1133 1ales White Spanish 764 900 969 1121

Ngro a 850 838 -910 1071 Other White 1014 1044 1029 1136 Fe-Mles White 723 1020 935 - 1230 Negro 920 920 1091 1151

Negro 916 715 978 1112 a Females W ite Spanish 702 1023 931 1245 Other White 965 1165 982 1313

Phn ri - Negro 891 947 999 1358 Male~s 11ttt Spanish 780 837 875 1075

Othcr -hite 972 1011 941 1060 Charlotte orrh Carolina

Fc-es WhIte Spijnb 761 711 86 87Mi 11ts W th1- 891 1021 995 1112 Other White ggs 1031 923 1128 it Negro a 860 721 932 1116

t Females White 944 1118 1001 1327 OklardCalifornila N t egro 896 755 833 1188

Males Mifte 1018 968 96 993 Negro 948 850 947- -990 Cincinnati Ohio

Femaled 111e 1015 1055- 924 1158 Vales White 923 1016 962 1097 0ro 972 864 970 1058 Negro 895 84l1 978 1103

s Fewales ite 868 1024 905 1203 St LouMissouri - Negro 890 784 970 121 Mles white 833 951 989 1075

bullegro t 875 857- 964 1062 oruhis Tenness~e Fecales White 824 1083 933 1258 Hales All races 859 881 941 103

N8grb 889 845 962 1191 a Neero 826 848 940 1090 t Females All races 900 817 966 120C i = 745 981 1177Negro 863

1arUga1 US incdex for male wage and salary yorkers of all races 10 or males US index of female rage and salary yorkers of all races 100 for fe=r

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 23: Factors affecting the utilization of manpower inrural and ...

-19-

The indices presented in Tables 6 and 7 and discussed in the preceding

section provide a foundation for developing a quantitative measure of

economic underutilization of manpower These indices can be used along

with a modicum of other data to develop for each population group in each

study area an estimate of the median earnings that would represent for each

particular group median earnings for manpower resources that are equivalent

to those obtaining in the U S economy at large for persons having income

earning capacities as judged by the combination of our four indices that

are equivalent to those of each study popuLation

There are at least four alternative techniques that can be used to

obtain estimates of these warranted median earnings The least complex

and perhaps the least satisfactory would be to take a simple average (mean)

of the four earning capacity influencing indices The resultant average

used as a percentage would be multiplied by the national median earnings

for the appropriate sex to obtain a warranted median earnings for each sexshy

race group Each warranted median would then be expressed as a percentage

of the actual median earnings of the relevant group The resultant

percentage would represent an index of economic utilization for the particushy

lar group Use of this procedure would tend to give maximum estimates of

the extent of economic underutilization

A second method would use the same procedure as outlined above except

that instead of obtaining the arithmetic mean of the four indices the

geometric mean would be developed Using this procedure would result in

lowering oomewhat the estimates of warranted median earnings and thereshy

fore in moderately lowering estimates of the extent of economic underutilishy

zation

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

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SUC

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AND

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INCLUDING

CENSUS

EMPLOYM

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AREA

APPL

AC

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2

LU

gt

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CL

o

u 0

lzol

jo w

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X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

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frn

ps W obull0=9=

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NU EM

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I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

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cm --

vvmwc -

I r --

CL

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-58-

SELECTED RURAL COUNTIES IN M

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State Showing Census Employment Survey Area

W

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w

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-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 24: Factors affecting the utilization of manpower inrural and ...

-20-

A thiud alternative would be to use regression analysis techniques

In this instance the warranted median earnings would be set as the

dependent variable and the indices influencing earning capacity as indeshy

pendent variables used to estimate warranted earnings This method would

probably result in estimates of underutilization somewhere between those of

the first two techniques This method would have the advantage of providing

statistical estimates of the relative importance of the four indices in

producing the estimate of warranted median earnings

The fourth method and the one used in this analysis obtains the

product of the four indices (1 x 2 x 3 x 4) As would be the case with the

first two methods this product of earning capacity influencing indices for

any population group is multiplied by the national median earnings for the

relevant sex to obtain an estimate of warranted median earnings The

actual median earnings forwarranted median earnings is then divided by the

the group to obtain an index of economic utiliz cion

This latter technique was chosen because it is believed that its use

results in the m~ost conservative (the lowest) estimates of the extent of

economic underutilization for most population groups found among wage and

those with which this study issalary workers in low income areas such as

concerned This can be quickly indicated by considering a hypothetical

population group with economic indices affecting earning capacity of 90

each for educational attainment occupational structure age structure and

wotrk experience (weeks worked distribution) The product of these four

indices would be 656 the arithmetic mean method would of course result

in this instance in an overall index of earning capacity of 900

By the same token the product of indices method will result in

relatively high estimates of the extent of underutilization for population

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

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-58-

SELECTED RURAL COUNTIES IN M

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SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

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-60-

S1KLECTED RURAL

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 25: Factors affecting the utilization of manpower inrural and ...

-21shy

groups having values of over 100 for all or most individual earning

capacity influencing indices

In addition to the indices influencing earning capacity three other

bits of information are introduced inTable 8 which displays our estimates

of economic utilization for the population groups of the rural study areas

These are the national median earnings of male and female wage and salary

workers of all races the estimated purchasing power of income and the

actual median earnings of men and women wage and salary workers for each

study area population group In Table 8 the-individual indices affecting

earning capacity are designated as adjustment factors and their product

as simply product of factors This product of factors is of course

in more analytically functional terminology an overall index of earning

capacity for each population group National median earnings for the

appropriate sex is multiplied by this index to obtain the warranted median

earnings estimate which is so crucial to an estimate of economic undershy

utilization

Since we derive our warranted median earnings by taking a designated

percentage of national median earnings and since to obtain the index of

economic utilization we divide warranted by actual median earnings it is

unstrable that actual median earnings be adjusted to reflect differences

between the purchasing power of income in the study areas and in the nation

as a whole

The purchasing power of income index which is given in Table 8 is the

closest approximation available to us for achieving this end These indices

have as 1000 the U S average urbcn cost of a lower budget for a family

of four as reported by the Bureau of Labor Statistics of the United States

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

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APPL

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-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

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-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

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-58-

SELECTED RURAL COUNTIES IN M

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State Showing Census Employment Survey Area

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-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

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-60-

S1KLECTED RURAL

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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

Page 26: Factors affecting the utilization of manpower inrural and ...

-22-

Department of Labor for the spring of 1970 1 These estimates are deveshy

loped by BLS for specified metropolitan areas and for four regions of the

country for non-metropolitan urban areas which is defined as places of

2500 to 50000 population For the most part we have used for our rural

study areas the BLS index for nonmetropolitan areas for the appropriate

region In the instance of the Missouri and New Mexico areas and the Zuni

Reservation the broad regional indices for the North Central and West

respectively were adjudged to be too high for these study groups The

numbers appearing in Table 8 have therefore been adjusted downward by 3 pershy

cent for Missouri and 7 percent for New Mexico and the Zuni Reservation

As is indicated in the stub of Table 8 actual median earnings are

divided by the index of the purchasing power of income to provide estimated

real actual median earnings The effect is to cause real actual medians

to be higher than actual reported medians for all except the California area

The western region nonmetropolitan areas index which is used for California

was 100 so actual and real actual are the same for this area

For males in these rural areas real actual median earnings were

lower than the national median earnings of $7152 for all groups In the

instance of Negro males they were from about $3500 to $4500 less than the

national In eight of the thirteen male population groups in Table 8

warranted medians were higher than real actual medians thus indicating

some degree of economic underutilization

The estimated extent of economic underutilization will be seen to

range from highs of 34 percent for the Zuni Reservation and 26 percent for

Spring 1970 Cost Estimates for Urban Family Budgets USDL-1l-606 December 1970

-23-

Missouri area males to a low of a nominal 7 percent for Negro males in

the Alabama area White males in Alabama Arkansas and North Carolina are

shown to have underutilization rates of 19 12 and 13 respectively In

the New Mexico area males of all races and white Spanish males each had

rates of underutilization of about 12 percent

There are five male population groups for which real actual medians

exceeded the mediana representing earnings equivalent to those obtaining in

the country as a whole for persons of equivalent earning capacities

warranted medians) and for which therefore no underutilization is

estimated These groups are males of all races in Appalachia white and

all races in California and Negro males in Arkansas and North Carolina

It will be recalled that for no population group of males did real median

earnings exceed the national median of $7152 For population groups in

three areas however warranted medians were higher than the national

These are white males in Alabama and North Carolina and males of races in

New Mexico The obverse of this statistic of course is that the national

median exceeds that warranted for ten of 13 male study population groups

While no group of men in our rural study areas had real actual median

earnings that exceed national median earnings for males four of the 13

women population groups are shown to have real median earnings greater

than the national median of $2730 The four are white women in Alabama

Arkansas and North Carolina and women of the Zuni Reservation The

women in these four populations had real median earnings ranging from a

little over $3100 to $3600 The women of three other population groups

(all races in Appalachia Missouri and New Mexico) had real medians

between $2200 and $2500 Five of the remaining six population groups had

-24shy

medians between $15G0 and $2000 The final population group Negro

women in Arkansas had real median earnings of only $926

With respect to warranted medians eight of the 13 women population

groups had earning characteristics that resulted in warranted median

earnings larger than real actual medians Thus some degree of economic

underutilization is estimated to exist for women in these eight population

groups

The estimated underutilization for white women in Alabama and Arkansas

is a quite moderate three percent Women of all races and white women in

California are each estimated to have about 16 p-rcent rates of economic

underutilization while women in the Missouri area are underutilized at a

rate of about 12 percent The highest degree of unddrutilization found for

women in our rural study areas is the 21 percent rate for women of all

races in the New Mexico area White Spanish women in New Mexico were undershy

utilized by about 13 percent The final area experiencing underutilization

of women wage and salary workers isAppalachia These women had at 17 pershy

cent the second most severe degree of economic underutilization

There are five female population groups for which we estimate no

economic underutilization that is these women are economically utilized

as well or better than their counterparts in the economy as a whole who

have comparable earning capacities These groups are Negro women in

Alabama Arkansas and North Carolina white women in North Carolina and

women of the Zuni Reservation

COMPARISON CITIES

Estimates of economic underutilization were developed for the low

income enclaves of eight of the surveys of such enclaves for 51cities

-25-

Table 18 -Estimated economic utilization of all male and female wage and salary workers with work experience-in 1970 for rural census employment survey areas by race

AlabamaItem I- Appalachia Arkansas t Males Females Males Females Males FemalesWhite Negro Whie Negro All races - White Negro White Negro

Median earnings US (all races) 7152 7152 2730 2730 27307152 7152 7152 2730 2730Actual median earnings 5789 3151 3172 1505 5978 1969 23575406 2756 815Purchasing power of incomefactor(U S Jrb1fr i0o) 88 88 88 88 88 88 88 88 88 88Real median earnings (=actual median 2 purchasing power ofindome) 6578 3580 3604 1710 6793 2237 6143 2678 3131 926Number in group 12772 10771 9803 10229 51827 24589 36963 17540 27800 15568

-Adjustment factorsOccupation 10F9 793 1118 692 981 1003 980 636 1064Age 528 983 880 996 959 959 943 973 889 975 969Education 974 747 1021 850 844 1028 957 690 1022Work experience 1086 967 1195 1047 1030 1020

755 1068 827 1ll1 802Product of factors 1132 504 1359 591 818 992 975 323 1178 310

WarranteC median earnings (-US median X product of adjustment factors) 8096 3605 3710 1613 5850 2708 6973 2310 3216 846

Indpc of economic utilization (= real median earnings 1warranted) 813 993 971 1060 1161 826 881 1159 974 1095Percent economic underutilza- tion 29 - - 174 119 - 26 shy

187 07

Man equivalent years of econom- ically unutilized labor 2388 V-6 284 4278 4399 723 -

Continued

-26shy

Table--Estimated economic utilization of all male and female wage and salary workers with workexperience in 1970 for rural census employment survey areas by race--Continued

California Missouri Zuni Reservation Item

Males All races White

Females All races White

Males Females All races

Males Females All races

Median earnings US (All races) Actual median earnings

7152 5884

7152 6017

2730 1805

2730 1813

7152 4415

2730 2280

7152 3972

2730 2935

Purchasing power of incomefactor (U S Urban 100) 100 100 100 100 94 94 93 93

Real median earnings (- actual median + purchasing power of income)

Number in group 5884 26656

6017 25395

1805 20854

1813 19570

4696 13590

2425 11122

4270 547

3155 455

Adjustment factors Occupation 874 882 940 949 979 982 1079 1105Age 930 932 928 930 993 976 914 895Education 979 981 1056 1056 909 993 933 864Work experience 968 981 849 848 1000 1057 988 1059Product of factors 770 791 782 790 884 1006 909 905

Warranted median earnings (=US median X product of adjustment factors) 5507 5657 2135 2157 6322 2746 6501 2471

Index of economic utilization (-Real median earnings warranted) 1068 1064 C845 841 743 883 657 1277 Percent economic underutiliza- tion - 155 159 257 117 343 -

Man equivalent years of econom- ically unutilized labor - 3232 3112 3493 1301 188

Continued

-27-Table A -Estimated economic utilization of all male and female wage and salary workers with work

eitperience in 1970 for rural census employment survey areas by race--Continued

North Carolina New Mexico Item- Males Females Males Females

White Negro WeNegro Neo White Al WhiteAll races All races Spanish Spanish

Median earnings US(all races) 7152 7152 2730 2730 7152 7152 2730 2730Actual median earnings 5818 3227 2907 1356 6057 5225 2130 1825Purchasing power of income factor 88 88 88 88 93 93 93 93 Real median earnings (-actual median 1 purchasing power of income) 6611 3667 3303 1540 6512 5618 2290 1962

Number in group 64313 22515 60612 24605 16937 6727 10558 3487

Adjustment factors Occupation 1058 729 1067 696 1023 955 1048 929Age 961 860 949 931 962 941 922 894Education 792965 1067 898 1002 945 1092 1007Work experience 1081 917 1097 861 1045 1051 1002 990Product of factors 1061 455 1185 501 1030 893 1057 828

Warranted median earnings (-US median X product of adjustment factors) 7588 3254 3235 1368 7367 6387 2886 2260

Index of economic utilization (-real median earnings 4 warranted) 871 1127 1021 1126 884 880 793 868 Percent economic underutiliza- tion 129 - shy - 116 120 207 132

Man equivalent years of econom- ically unutilized labor 8296 1965 807 2186 460

-28-

Lncluded in the Census Survey of Employment The data comparable to that

for rural areas is presented in Table 9

The purchasing power of income index was derived from the same

source as indicated for rural areas In the instance of our eight cities

BLS indices were directly available for Cincinnati New York City Uakland

and St Louis Indices for the other four cities were estimated In

making the estimates consideration was given to index levels available for

any near-by cities and to the general relationship between metropolitan

and nonmetropolitan urban indexes for the region in which the city is located

For males it appears that the overall extent of economic underutilizashy

tion in the low income sections of cities is roughly comparable to that

prevailing for men in rural areas For example 11 of the 17 separately

identified city male population groups are found to have some degree of

economic underutilization In the instance of rural men eight of 13

population groups had some underutilization Thus about 65 percent of city

and 62 percent of rural male population groups have real median earnings

lower than those prevailing in the economy as a whole for persons having

comparable earning capacities

Tle extent of economic underutilization among city males is overall

somewhat less severe than that for rural males Some city groups however

exhibit high rates For example New York City Negro males and white males

other than Spanish each have economic underutilization rates of 225 pershy

cent and white males in Oakland experienced underutilization of almost 19

percent

The underutilization picture for city female population groups is

altogether different from that for city males rural males and rural females

-29-

For all practical purposes our data indicate that there is no economic

underutilization for any of the 17 city female population groups of our

eight comparison cities The lowest indexes of economic utilization found

awong these 17 women population groups are 994 for white women in Oakland

and 999 for Negro women in Birmingham

SUB-EMPLOYMENT INDEX

We have now examined four different measures or indicators of manpower

utilization in our low income rural study areas The four are unemployment

involuntary part-time schedules hidden unemployment or discouraged workers

and economic underutilization Each is an important facet of the overall

picture but only a facet There is needed a measurement which can combine

all four into a general social indicator of manpower utilization The

construction of such a measure is attempted in presenting the data of

Table 10 The new resulting number is called a sub-employment index The

numbers underlying each of the four individual measures previously presented

are expressed as a percentage of the adjusted civilian labor force (regular

civilian lab6r force plus the number of discouraged workers) The percentshy

ages for the four measures are then summed to give a sub-employment index

The number used to obtain the percent for economic underutilization is found

on the final line of Table 8 where it is called man equivalent years of

economically unutilized labor This number is expressed as a percentage

of the adjusted civilian labor force

In order to provide a base for judging the significance of the subshy

employment indices that are developed a comparable index for males and

females of all races has been constructed for the United States Data are

not available that permit development of a national sub-employment index

for racial groups

-30-

Table 9- --Estimated economic utilization of all male and female wage and salary workers with work experience in 1970 by race

Birmingham Alabama Charlotte North Carolina Item

Males Females Males Females White Negro White j Negro White Negro White Negro

Median earnings US (al raceO- 7152 7152 2730 2730 7152 7125 2730 2730 Actual median earnings 6494 -4724 3308 1788 5942 4869 4001 2431 Purchasingpower of income factor 92 92 92 92 95 95 95 95

tU Si Urbian -160) Real median earnings (- actual median v purchasing power of income) 7058 5134 3595 1943 6254 5125 4211 2558 Number in group 9642 18760 7357 17786 3433 11343 3028 12078

Adjustment factors Occupation 1033 838 1020 715 1021 721 1118 755 Age 953 910 935 978 995 932 1001 833 Education 952 850 725 916 891 860 944 896 Work experience 1133 1071 1230 1112 1112 1116 1327 1188 Product of factors 1062 694 850 712 1007 645 1402 669

Warranted median earnings (- US median X product of adjustment factor) 7595 4963 2320 1944 7202 4613 3827 1826

Index of economic utilization (u real median earnings warranted) 929 1034 1550 999 868 1111 1100 1401

Percent economic underutilization 71 - - 01 132 - - -

Man equivalent years of economically unutilized labar 685 8 451

-31-Table - Estimated economic utilization of all male and female wage and

salary workers with work experience in 1970 by race

Phoenix Arizona Oakland California Item Males

White Other Females

White Other Negro Males Females

White Spanish White Spanish White Negrohite

Median earnings US (all races) Actual median earnings Purchasing power of income factor

-

7152 5651

100

7152 6614 100

2730 1951 100

2730 3049 100

7152 6610

110

7152 6412

110

2730 3176 110

2730 3420

110 Real median earnings (= actual median purchasing power of income)

Number in group 5651 7411

6614 14436

1951 5285

3049 12135

6009 15935

5829 9391

2887 13971

3109 5944

Adjustment factors Occupation Age Education Work experience Prbduct of factors

-

837 875 780 1075 614

1011 941 972 1060 980

711 846 761 875 401

1031 923 998 1128 1071

850 947 948 990 755

968 960 1018 1058 1001

864 970 972 993 809

1055 924 1015 1158 1146

Warranted median earnings ( = US median X product of adjustmentfactors) 4391 7009 1095 2924 5400 7159 2209 3129

Index of economic utilization (=real median earnings warranted 12807 -94141 1782 1043 1113 814 1307 994

Percent economic underutilization 56 186 06

Man equivalent years of economically unutilized labor 80 14 357

Table9 -Estimated econnmic utilization of nil mie and fAcale wage nnd valary workers with work experience in 1570 by race

Item

New York City

Males F

New York City

c1s s

Cincinnati Ohio

Males Fe les

Negro Spanish ite -

N Spanih White bull WhNegroht

WhiteWht

Negro

todlan earnings US (all races) ctual =edan earnings rchiag power of Income factort teal gedlan trnings (- actual meian purchasng powerof Income)

u=-- i-tgroup

7152 6070

103

5893 191500

7152 5156 103

5006 113100

7152 7046 103

6841 112300

2730 4452

103

4322 158600

2730 3538 103

3435 57800

2730 4724

103

4586 65300

7152 5912

95

6223 12138

7152 5693

95

5992 16484

2730 3381

95

3558 9384

2730 2921

95

3074 16697

ijustentfactors Occupation X EductLon

xorkeperience Product of factors

920 1091 920

1151 1063

900 969 764

1121 747

1044 1029 1011 1136 1234

947 999r 891

114 5

1023 931 702

_1581245 832

1 1165 982 965

1313 1450

1 1016 962 923

1097 990

841 978 895 1103 812

1024 905 868 1203 968

784 970 890

1231 833

-arracnted median earnings ( US modian X product of adjus~ment

t 7603 5343 8826271

3959 7080 5807 2643 2274

Index of econoinic utilization meian earnings warranted)

(real 775 937 775 1382 512- -158 879 1032 13416 1352

PercenCoeconomic underutIlizatiou 225 63 225 - 121 --

Man equivalent years of economically unutilized labor 43088 7125

25268 1469

-33-

Table ffi--Estimated economic utilization of all male and female wage andsalary workers with work experience in 1970 by race

St Louis Missouri Memphis TennesseeIter Males Females Males Females White Negro White Negro All All

SNegro races Negro eal Pxrcasin~ powe offctors races NerMedian earnings US -(all races) 7152 7152 2730 2730 7152 7152 2730Actual median earnings

27306062 5276 3646 2800 4769 4611 2398Purchasing power of Sncome factor 2247100 100 100 100 92 92bull(US Urban- 100) 92 92 Real median earnings (- actual median Iapurchasing power of income) 6062 5276 3646 2800 5183 5011 2606Number in group 2442 16695 36340 11870 35538 41377 35055 39784 33051

Adjvitment factorsOccupation 951 857 1083 845 881 848Age 817 745 989 964 933 962 941 940 966Education 981 833 875 824 889 859 826 --Work experience 900 863 1075 1062 1258 1191 1086 1090 1200 1177Product of factors 842 768 1047 861 773 718 852 742

Warrented median eazaings (= US median X product of adjustmentfactors) 6022 5493 2858 2351 5528 5135 2326 2026

Index of economic utilization ( real median earnings 1 warranted) 1007 960 1276 1191 938 976 1120 1205 Percent economic underutilization 40 shy - 62 24 -

Man equivalent years of economically Unutilized labor 454 shy 2565 841

-34-

The fact will be observed that economic underutilization is not shown

for the U S index This of course is because all races for the U S

is the norm used for calculating the index of economic utilization for area

sex groups The U S index of economic utilization is by definition

equal to 1000 no national underutilization index is obtained in this

study

For males the national sub-employment index is 74 the lowest index

among our study areas males is 116 for Appalachia This is more than 50

percent higher than the national The Missouri area males with 288 have

the highest index of sub-employment

The fact should be noted that not only is the sub-employment index for

each male group in our study areas much higher than the national norm but

also that each component of the index for each area male group is much

larger than its national counterpart

The picture revealed for women is essentially the same as that just

sketched for men For all but two area groups the sub-employment index

for women is substantially higher than for men The two exceptions are

white women in North Carolina and women of the Zuni Reservation The Zuni

women with a sub-employment index of 42 less than half the national norm

are the only group of either sex to have an index smaller than the national

norm which in the instance of women is 103 In Appalachia and New Mexico

the sub-employment index for women is shown to be more than 40 percent

and in California and Missouri it exceeds 35

ECONOMIC UNDERUTILIZATION FOR NEGROES

Over the past several years most available statistics indicate that

progress has been made in ameliorating racial discrimination in the job

market The past effects of policies that confined some groups to the

-35-

APPENDIX Table 10 Subemployment index with component parts for low-income rural areas included in Census Employment Survey 1970 with comparisons to United States

Area and race Male Female Inv l -S D iscour Ec onomic Subem- Invol- Discour- Economic SubemshyUnem- untary aged Iunderuti- ployment Unem- untary aged underuti- ploymentploymentiparttimelworkers ilizaton lindex [plovment oarttime workers lization Indx

b------- --Percent -----------------------------------------Alabama

All races 34 48 08 NA NA 71 88 38 NA NA White 1 21 33 07 152 213 51 61 16 28 156Negro 51 68 08 07 134 89 113 59 00 172

AppalachiaI All races i 58 36 22 00 116 84 43 130 155 412

Arkansasa All races1 41 34 04 NA NA 77 67 55 NA NA White 23 16 01 89 129 56 38Negro Is 80 24 25 14373 13 00 166 106 111 107 00 318

California a All races1 93 52 07 00 152 91 88 36 170 385

Missouri All races 57 50 07 174 288 75 99 77 103 354

New Mexico All races 77 33 26 101 237 64 58 83 197 402

North Carolina All races 38 61 05 NA HA 87 72 31 NAWhite 28 40 03 75 146 71 51 20 00

NA

Negro 60 117 11 00 188 111 119 58 142

00 288

Zuni Reservation All races 28 18 13 212 271 20 09 13 00 42

United StatesAll races 49 22 03 00 74 62 31 09 00 103 White 45 NA 03 NA NA 56 VA 08 NANegro 9 77 NA 07 NA NA NA

95 NA 15 NASources For Study areas Census Employment Survey Vol PHC(3)-74 NAX

For the U S Handbook of Labor Statistics USDLBulletin 1705 and Monthly Labor Review March 1973

-36shy

bottom rungs of some occupational ladders and excluded them entirely from

other occupations will however be seen in statistics for a long time

Some of the information developed in this study suggests the continuing

effects of past Job discrimination and social neglect in the education of

Negroes in sourhern areas

Separate data were developed for Negroes in the Alabana Arkansas and

North Carolina areas These data show that both Negro men and women have

substantiallyllower median earnings than their white counterparts Negro

medians are for the most part only about 50 to 60 percent as large as those

for whites Our analysis does not however anticipate equal earnings

medians for all population groups It rather has endeavored to determine

whether each group was attaining real median earnings equivalent to those

obtaining for persons of comparable earning capacity in the economy as a

whole

To do this warranted median earnings were calculated These warranted

medians were obtained by multiplying national median earnings of each sex

by our estimated index of overall earning capacity This index of overall

earning capacity it will be recalled is the product of indices for education

al attainment occupational structure age structure and work experience

(weeks worked distributions)

The warranted medians that evolved for Negroes were except for

Alabama males lower than the very low actual medians In the instance

of Negro men in Alabama the warranted and real actual medians were

virtually the same

On the basis of these facts a superficial conclusion would bethat no

job market discrimination exists because our data indicate they are utilized

-37shy

as effectively as are persons of comparable earning capacity in the nation

at large Such a conclusion would be based on an implicit assumption that

access to occupations and to full-time work experience was available to

Negroes without discrimination

Some of our data appears to bring the validity of such an assumption

sharply into question Let us first consider the relationships between the

index of industrial quality (which is for all races) and indices of

occupational quality for Negroes and whites There is of course no

reason to expect perfect correlation but the results for Negroes and whites

in our three are interesting

For white males in Alabama Arkansas and North Carolina occupational

indices are sharply higher than the area indices for industrial quality

For Negro males in the same three areas occupational indices are even more

sharply lower than the relevant industrial quality index Precisely the

same situation prevails for white and Negro women in the three areas

As a comparison we can look at the relationship between industrial

quality and occupation indices for all races in the Appalachia California

and Missouri areas The population of each of these areas is preponderantshy

ly white For males in Appalachia the industry index is substantially

higher than that for occupations in the Missouri area the industry index

ismoderately higher and for California males the indices are practically

the same

In the instance of women the two indices are virtually identical for

Appalachia and California and the occupational index is moderately lower

in the Missouri area

These facts are believed to suggest that both Negro men and women in

the Alabama Arkansas and North Carolina areas have in the past been

-38shy

restricted to lower rungs of those occupations to which they were admitted

A further indication of possible job discritAnation against Negroes

may be found by analyzing the relationships between educational and

occupational indices for whites ard Negroes because it seems reasonable

to assume that there should be some consistent relationship between these

two individual indexes

For white males in Alabama and North Carolina the educational index

is 974 and 956 respectively while the occupational indices are considershy

ably higher at 1089 and 1056 The two indexes are more nearly equal in

Arkansas but the occupational measure at 980 still exceeds the educationshy

al index which is 957

The educational indexes are relatively low for Negro men They are

747 690 and 792 for Alabama Arkansas and North Carolina respectively

In the instance of the Alabama area the low occupational index of 793

still slightly exceeds the educational measure In the Arkansas~and North

Carolina areas however occupational indices are considerably lower than

the quite low educational measures

The situation among white women in the three areas is not greatly

different from that for their men The women have higher educational inshy

dexes and generally somewhat higher indices for occupational structure

Negro women exhibit more striking differences between educational and

occupational indexes than do the men but there arethe same type of

differences--educational consistently and markedly higher than the occupationshy

al index

The consistent pattern of Negroes having occupational indices lower

than their educational while for whites the reverse is true does not

-39shy

prove that this results from job discrimination but it raises a serious question about its existence Taken alone the low levels of educational

attaiment of Negroes compared to whites suggests past social neglect of

this minority group

An indication that job discrimination is not confined to rural areas

or to the South can be found by considering briefly the relationships

betwgeen educational and occupational indices for our comparison cities

In Cincinnati and Charlotte the educational qualAiy index for Negro

males is only slightly below that of white males but for Charlotte the

occupational index of Negro nales is 30 pointsbelow that for white and

in Cincinnati it is 7 points lower for Negroes For Oakland there is a

7 point spread in favor of white males in educational attainment but a

12 point differential in the same direction for the occupational index

The same sort of situation is found in St Louis Here Negro males

have a slightly higher educational attainment index but have a nine point

lower occupational index than do whites

In New York City and Phoenix Arizona on the other hand there will be seen a rough equivalency among male racial groups in the point divergences

between the educational and occupational indexes

The same situation exists for Negro women as that just discussed for

Negro men with respect to extreme divergencies between the occupational and

educational indexes as between whites and Negroes in cities

In Cincinnati Negro women have a higher educational index than whites

but they have a 24 point lower occupational index In Oakland Negro women

have an occupational index 19 points lower than whites but show an

educational index 4 points higher In St Louis the situation is similar

Negroes have a 6 point higher educational index and a 24 point lower

-40shy

occupational index In Charlotte the Negro women have a 5 point lower

educational index and a 36 point lower occupational index than do whites

These facts do not of course prove jLb discrimwnation in these labor

markets but they do raise questions worth inestigztLng

The work experience index is one that can also be affected by job

discrimination against Negroes for if Negroes are discriminated against

with respect to occupations they would likely be much more than proportionshy

ally represented in the more casual types of jobs and those that are the

first to be dispensed with if there is a cut-back in production or

business activity

A comparison of white and Negro work experience indices for the rural

study areas reveals that whites uniformly have higher work experience

indices than do Negroes In Alabama the work experience index for white

men is 14 points above that for Negroes while inArkansas there is a 24

point spread in favor of white males Negro men in North Carolina have a

work experience index 16 points below that of whites

Both white and Negro women in Alabama have work experience indices

above 1000 but the white index is 15 points higher than that for Negro

women In the Arkansas area white women have a work experience index of

111 while that for Negroes at 80 is 31 points lower The situation in

North Carolina is only moderately less extreme The index for white women

is about 110 while that for Negroes is 86

It thus appears that there is a substantial probability that both Negro

men and women are discriminated against in ways which lead to relatively

low work experience indices

-41-

These data taken in conjunction with information indicating

discrimination leading to unjustifiably low occupation indices suggest

that the overall indices of earning capacity for Negroes in the study area

are substantially lower than would be the case in the absence of job

discrimination Higher indices of overall earning capacity would probably

give a truer indication of the overall quality of the Negro labor forces

It might also result in estimates of economic underutilization for some or

all Negro population groups

IMLICATIONS FOR MANPOWER DEVELOPMENT POLICIES AND PROGRAMS

By far the most important implication of the manpower utilization

data developed in this report is that these rural study areas need more and

better employment opportunities

There are to be found in our data however implications of need for

manpower development programs and policies Such programs and policies

of course meaningful only within a context that includes employment

opportunities for the upgraded skills that are developed

The educational occupational and work experience status of Negroes

in the Alabama Arkansas and North Carolina areas suggest need for jobshy

oriented training for better employment opportunities With respect to

Negroes continued and stepped-up programs to eliminate discrimination in

the job market are probably the most urgently needed manpower development

policy

-42-

APPENdZ Table 1 - Percentage distribution f wage-and salary workers by major industry group by sex all races rural census employment areas and the United Stares 1970

_ Industry US Alabama Appalachia Arkansas

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct tribution to US tribution to US tribution to US

= p

Males 1000 1000 1000 999 Agriculture forestry and fisheries - 67 63 940 05 75 223 3328

Mini g 10 07 700 449 44900 01 100 Const action 97 104 1072 63 649 78 804 Durable goods manufacturing 185 114 616 64 346 166 897 Nondurable goods manufacturing 100 164 1640 20 200 108 INA Transportation communication and other public utilities 82 60 732 81 988 64 780

Wholesale and retail trade 187 157 840 121 647 164 877 Finance insurance and real estate 40 20 500 12 300 17 425 Business and repair services 34 18 529 18 529 37 500 Personal services 28 20 714 13 464 14 500 Professional public administrashytLon and entertainment 170 273 1606 154 906 147 865 index of industrial quality 1 1015 1015 1121 1121 871 871

Fema[es 1000 1000 999 999 Agriculture forestry and fisheries 23 20 870 - - 66 2870 Mining 01 E 12000 shy- 2 Construction 08 05 625 03 375 03 375 Durable goods manufacturing 77 20 260 37 480 91 1182 Nondurable goods manufacturing 105 234 2229 82 781 153 1457 Transportation communication and other public utilities 34 17 500 21 618 18 529

Wholesale and retail trade 222 133 599 237 1068 184 829 Finance insurance and real estate 59 27 458 24 407 30 508 Business and repair services 22 08 364 05 227 06 273 Personal services 125 218 1744 118 944 157 1256 Professional public administra- tion and entertainment 324 319 985 460 1420- 291 898

934 934 1008 1008 937 937Index of industrial quality i1 Continued

APPENDIX Table 1 Percentage distribution of wage and salary workers by major industry group by sex all racesrural census employment areas and the United States 1970(Continued)

Industry California Missouri N e w Me x i c 4o North Carolina

Pct dis- Relative Pct dis- Relative Pct dis- Relative Pct dis- Rel to tribution to US tribution to US tribution to US tribution U S

Males 999 1000 1000Agriculture forestry and 999 fisheries 230 3433 39 582 33 492 76Mining 113405 500 56 5600 144 14400 2 -Construction 72 742 88 907 90 928 118 1216Durable goods manufacturing 73 395 190 1027 47 254 93Non-durable goods manufacturing 96 960 118

503 1180 30 300 192 1920

Transportation communication andother public utilities 61 744 67 817 118 1439Wholesale and retail trade 60 7321 180 963 176 941 155 829 194 1037Finance insurance and real estate 22 550 22 550 15 375 24 600

Business and repair services 22 647 13 382 27Personal services 794 24 70612 429 11 393Professional public administra- 18 643 18 643 tion and entertainment 226 1329 220 1294 323 1900 200 1176Index of industrial quality 1 871 871 1048 1048 1058 1058 1000 1000

Females 1001 1001 1001 1000 Agriculture forestry and

fisheries 86 3739 0 261Mining 07 304 76 3304 - - 02 2000 02 2000 -Cnstructicn shy06 750 03 375 03 375 04 500Durable goods manufacturing 12 156 48 623 18 234 45 584Non-durable goods manufacturing 127 1210 346 3295 21 200 260 2476Transportation communication

and other public utilities 16 470 16 470 34 1000 21 618 Wholesale and retail trade 236 1063 194Finance insurance and real estate 54 915 874 255 1149 186 83830 508 40 678 34 576Business and repair services 08 364 04 182 12 545 08 364Personal services 83 664 78 624 115 920 98 784 Professional public administrashy

tion and entertainment 373 1151Index of industrial quality i 947 274 846 494 1525 268 827947 1058 1058 997 997 971 971

l U S percent distribution weighted by median earnings for industries = 1000 2 Less than 05

Source Employment Profile 2 (PHC(3) 69-76)

-44-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for low income areas of selected cities included in census employment survey--Continued

Industry US1 Birmingham Ala Phoenix Ariz Oakland Ca- 1StLouis Mo Pct dis- Rel to Pct dis- Rel Pct dis- Relto Pct dis- Reltc

Males tribution U S tribution to US tribution U S tribution USAgricultureforestry and fisheries 67 06 90 33 492 10 149 04 60 Mining 10 10 1000 04 400 - -Construction 01 10097 71 732 119 1227 72 742 46 474 Durable goods manufacturing 185 336 1816 183 989 168 908 273 1476Nondurable goods manufacturing 100 64 640 50 500 84 840 140 1400Transportation communications and

other public utilities 82 87 1061 59 720 134 1634 93 1134 Wholesale and retail trade 187 185 989 189 1011 167 893 138 738Finance insurance and real estate 40 24 600 18 450 16 400 22 550 Business and repair service 34 25 735 44 1294 47 1382 33 970Personal services 28 31 1107 52 1857 26 928 25 893 Other professional entertainment and public administration 170 159 935 245 1441 265 1559 225 1324

2 Index of industrial quality 1000 1060 1060 - 998 998 1058 1058 1079 1079

Females Agriculture forestry and fisheries 23 02 87 09 391 05 217 02 87Mining a 01 01 1000 01 1000Construction 08 02 250 06 750 03 375 02 250Durable goods manufacturing 77 33 428 131 1701 33 428 57 740Non-durable goods manufacturing 105 55 524 82 781 83 790 146 1390Transportation communications and

other public utilities aa 34 24 706 27 794 52 1529 25 735Wholesale and retail trade 222 228 1027 225 1014 149 671 138 622Finance and real estate 59 47 797 44 746 60 1017 29 492Business and repair service 22 12 545 38 1727 21 954 21 954Personal service 125 274 2192 156 1248 207 1656 172 1376 Other professional entertainment and public administration 324- 3212 994--_ 280 864 387 1194 405 12502 Index of industrial quality 1000 75-5 755 981 981 978 978 1008 1008

Continued

-45-

APPENDIX Table 2 Percentage distribution of wage and salary workers by major industry group by sex 1970 for lowincome areas of selected cities included in census employment survey--Continued

Industry New York City N Y Charlotte N C Cincinnati Ohio JMemphis Tennessee

Pct dis-tribution

Relative to US

Pct dis-tribution

Relative to U S

Pct dis-tribution

Rel to US

Pct dis-tribution

Rel to US

MalesAgriculture forestry and fisheries Mining Construction Durable goods manufacturing Nondurable goods manufacturing Transportation communications andother public utilities Wholesale and retail trade Finance insurance and real estate

Business and repair servicePersonal services

Other professional entertainment

1

02 I Z5 107 147

00 186 69

5847

30 -

464 578

1470

1220 995

1725

17061678

08 03

107 125 143

128 214 25

4033

119 300 1103 676

1430

1561 1144 625

11761178

03 -

87 229 120

75 148 20

4131

45 -

897 1238 1200

915 791 500

12061107

06 02I 86 175 172

91 170 20

3228

90 100 886 946

1720

1110 909 500

9411000

2 and public administrationIndex of industrial quality 2381042 1400 1751036 10291036 2451062 14411062 2191057 12881057

Females Agriculture forestry amp fisheries Mining

Construction Durable goods manufacturingNondurable goods manufacturing

Transportation communications amp other public utilitiesWholesale and retail trade

Finance and real estateBusiness and repair service Personal service Other professional entertainment amppublic administration 2 Index of industrial quality

I

a

1

- 63 222

49 120

9138 111

302 1102

-

-

25-0 818

2114

1441 540

1542 1727

_888

932- 1102

02

0026 24

163

27173

18 96

255 851

87 600

3000 3121552

72 794 779

593818

2368

787 851

01

06 66

108

29153

3627 175

399 1006

43

750 8571028

853 689

6101227 1400

1231 1006

07 -

03 7468

27 194

2622

277

302 866

304 -

375 961648

794874

4241000 2216

932 866

i Less than 05 2 U S percent distributionweighted-by median earnings = 100

--

-46-

APPENDIX Table -3- nemploymentttes by age -sex and rrce for Rural Census Employ ent Survey areas 1970

- i- wth comparisons to the United Sta~tcs

AppalachiaAlabama

Sex and age groups All Races hite Negro All Races

Unemploy- Relative Unempioy- Relative Uncmploy- Relative Uncmploy- Relativa to US merit rate to US bull ment rate to US menit rate to US ment race

Totnl 16 years and over 36 735 21 428 55 1122 61 1245 175 1042 197 1173i(-21 years 132 786 72 428

893 61 108922-34 w3 3 536 15 268 50 5 185 8 I-296 0 -- 23 85235-4

14 56 0 12 48 17 630 - 27 108045-54 55-64 39 - 300 40 - 1333 39 1300 38 1267

3123 565S vears and over o 71 Ya=lcs

Tota1 16 years and over 82 1302 5 39 108 1714 119 1839 835 322 1i94 256 150616-21 years 250 1471 142 913 110 1514 150 217422-3 85 1232 63

65 122635-44 51 962 52 981 51 962 1892 71 191943-54 47 1270 28 757 70

31 1148 29 333074 1222 43 159255-64

65 years and over 17 486 29 828 0 -- 0

-47-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Sex and age Arkansas California a All Races

Unemploy- 1 Relative ment rate to US

White Unemploy- Relative ment rate to US

Negro Unemploy- Relative

ment rate to US

All Races a WhiteUnemploy- Relative Unemploy-1 ment rate to US ment rate

Relative to US

Males Total 16 years

and over 16-21 years 22-34 35-44 45-54 55-64 65 years andshy

42 142 34 25 29 31

857 845 607 926

1160 1033

24 72 25 16 13 24

490 428 446 592 520 800

88 254 66 49 67 46

1796 1512 1178 1815 2680 1533

96 224 76 74 80 97

1959 1333 1357 2741 3200 3233

92 215 74 71 81 82

1878 1280 1321 2630 3240 2733

over 35 833 0 ---- 82 1952 29 690 30 714

FemalesTotal 16 years i and over

16-21 years 22-34

35-44 45-54 55-64

65 years and over

94 236 1212

115 57 37

26

1492 1388 1768

2170 1540 1370

743

63 138 91

36 46 12

24

1000 812

1319

679 1243 444

686

150 383 198

93 76 76

28

2381 2253 2870

1755 2054 2815

800

107 192 131

57 76 76

31

1698 1129 1898

1075 2054 2815

886

104 180 123

61 74 81

33

1651 1059 1783

1151 2000 3000

943

-48-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Missouri New Mexico Sex and age groups

All races All races White Spanish Other White Unemploy- Relative a Unemploy- Relative FUnemploy- Relative 1 Unemploy- Relative ment rate to US ment rate to US ment rate to US amet rate to U S

Males

Total 16 years and over 59 1204 84 1714 83 1694 40 816 16-21 years 148 881 203 1208 224 1333 118 702 22-34 80 1428 101 1804 76 1357 47 839 35-44 47 1741 62 2296 64 2370 26 84045-54 52 2080 38 1520 18 720 21 1067 55-64 a 22 733 -51 1700 64 2133 32 107165 years and over 0 - 18100 76 186 4428 45

Females Total 16 years and over a 92 1460 84 1333 93 1476 76 1206 16-21 yearsa 198 1165 162 953 162 953 134 788 104 1507 98 1420 112 2113 87 1261 35-44 85 1604 52 981 48 906 66 1245 45-54 65 1757 56 1514 67 1811 49 1324 55-64 46 1704 44 1630 0 -- 64 2370 65 years and over 22 628 20 5030 857

a

-49-

APPENDIX Table 3 Unemployment rates by age sex and race for Rural Census Employment Survey areas 1970 with comparisons to the United States

Zuni Reservation North Carolina New Mexico

Sex and age groups All Races White t Negro _All Races

mUnemploy- ment rate a

Relative to US

Unemploy-ment rate

Relative a to US

Unemploy- I tiament rate i Relative to US

aI Unemploy-ment rate

Relative a to US

Males Total 16 years and over 39 796 28 571 64 1306 31 63 16-21 years 128 762 117 696 110 655 69 41 22-34 35 62i5 30 536 60 1071 37 66 35-44 45-54

20 17

741 680

10 5

370 200

39 61

1444 2440

31 15

114 60

55-64 30 1000 18 600 54 1800 10 33 65 years and over 17 405 0 69 1643 0

Females Total 16 years and over 16-21 22-34

a 102 211130

1619 12411884

80 1891

99

1270 11121435

142 231191

2554 13592768

23 4314

36 2520

35-44 62 1170 48 906 107 2019 0 45-54 56 1514 35 946 106 2865 98 264 55-64 45 1667 28 1037 73 2704 0 65 years and over 22 628 33 943 - 0

Table 4-Unemployment rates by age sex and race for low income areas of selected cities included in

the census employment survey 1970 with comparisons to the United States

Phoenix ArizonaBirmingham Alabama Sex and age groups

White Negro All races White Spanish Other WhiteAll races

Unemploy- Relative Unemploy- Relative-Unemploy- Relative Unemploy- Relative Unemploy- Relative Unemploy- Relative

to US ment rate to USment rate to US ment rate to US ment rate

gales

total 16 years and over 78 1592 41 837 98 2000 88 1796 78 1592 69

ment rate to US nent rate to US

1714 183 1089- 151 899 131 815 16-21 years 237 1411 100 595 288

1089 71 12681982 79 1411 6122-34 80 1428 33 589 111

444 36 1333 62 2296 51 1889 48 17781000 1235-44 27 58 232C1240 34 L1360 66 2640 16 640

45-54 33 1320 31 156759 1967 121 4033 47

36 1200 45 1500 30 100055-64 45 10711143 153 36431500 81 1928 4865 and over 73 1738 63

Females

11271730 168 2667 71 rotal 16 years and over 130 2063 73- 1159 153 2428 109

935 501 2947 209 1229 295 1735 117 657 16-21years 391 2300 159

2174 100 14492072 129 1870 15022-34 121 1754 61 884 143

22634 - 642 90 1698 12 35-44 - 89 1679 102 1924 85 1604 2297 186 5027 63 170329 784 78 2108 8545-54 63 1703

0 - 41 15181185 49 1815 54 200055-64 43 1592 32 52 1486

- 3 122820 571 56 1600 065 and over

Continued

Table 4C-Unemploymarrartes by age and sex for low income areas of selected cities included in the Census Eaploymet Survey 1970 with rdaparisons to the United States

2 Charlotte lorth Carolina Cincinnati Ohio

Sex and age All Rces ite Nero All Faces White Negro groups y I Aleiee

Unemploy- F lative UnnmploT- Relative Jeneuroloy- Relative Inesrlov- rPelative Uneloy- Relntive Unemploy- Relative ment rate to US 2 ocnt Fate 2 to US bull oa-nt rate to USent rate to VS z ent rate to US ent rate -to US

Males Total 16 years and ever 65 1326 39 796 73 1490 73 1490 39 796 100 2041

16-21 years 231 1375 151 899 249 1482 242 1440 111 661 326 1940 22-34 4 786 27 482 48 857 73 130M 52 928 92 1643 35-4 23 852 0 -- 30 1111 29 1074 9 333 41 1518 45-54 35 27 1080 1520 45 1100 24 960 60 26003 1600 38 55-6 20 667 0 -- 28 933 39 1310 10 333 64 2133 65 years and over 85 2024 113 2690 65 1548 32 762 30 714 36 857

Females Total 16 years and over 101 1603 36 571 116 1841 97 1540 86 1365 102 1619

16-21 years 308 1812 154 906 330 1941 265 1559 179 1053 324 1906 22-34 98 1420 0 -- 116 1681 104 1507 83 1203 113 1638 33-4 54 1019 52 981 55 1038 63 1189 63 1282 61 1151 45-54 37 1000 35 946 37 1000 39 1054 83 2243 12 324 55-64 10 370 0 - 14 518 21 778 26 963 17 630 65 years and over 42 1200 44 1257 41 1171 19 543 0 -- 33 943

-52-

Table 4 --Unemployment rates by age sex and race for low income areas of selected cities included in the census employment survey 1970 with comparisons to the United States-Continued

cx and age groups Oakland California St Louis Missouri-

All races White ii ero All races White Nerro

Unsmploy- Relative Unemploy- Relative Unemploy- Relativa Unemploy- Relative Unemploy- Relative Unemploy- Relative

ment rate to US ment rtO to-US ment rate to US nent rate to US ment rate to US mnt rate to US

110 21Z594 1918 59 1204Total 16 years and over 173 3531 126 2571 215 4388

165 982 30 18392411 300 1786 489 2911 274 163116-21 405 3054 -123 2196 213 3804 - 102 1821 64 1143 120 2143

2Z-34 171 56 2074 72 2667

35-44 129 4778 54 2000 175 6481 67 2481 1840 23 920 56 2440

45-54 105 4200 152 6080 90 3600 46 46 1533 30 1000

55-64 106 3533 62 2067 148 4933 36 1200 0 - 58 1381

45 and over 146 3476 -152 3619 177 4214 41 976

Fema~les

59 936 136 2159 Totnl 16 years and over 180 285T 119 1889 208 3302 117 1857

20241700 128 753 3431 419 24611 266 1565 486 2859 28916-21

60 j 870 162 2348 204 2956 114 1652 244 3536 140 2029

22-314 33-0 119 2245 100 1887 65 1226 71 i340 65 1226

109 2037 81oi 70 189258 1568 301108 154 416243-514 121 3270 41

48 177839 1444 46 1704 42 155653 963 88 325955-4 - 66 1886 - 135 3857 40 1143 0

65 and over bull 106 3028 0

--------------------------------

-53-

Table 4 Unemployment rates by age sex raceand for low income areas ofselected cities included in the Census Employment Survey 1970with comparison to the Unitel States

S- Memhis Tennessee Race sex All Races Neroand Relative Relativeage group Unemployment to US Unemployment to US

--Percent ~~~ rt-----------------------------

Males Total 16 years and over 93 1898 10116-21 years 2061355 2113 377 224422-34 79 1411 80 142835-44 43 159245-54 39 144420 80065 -6 26 867 24 96055-64 33 11002 8673o165 years and over 51 1214 69 1643

Females Total 16 years and over 134 2127 239716-21 o38222-34 2247 456142 26822058 15 9 230435-44 83 1566 85 160445-54

62 1676 75 202755-64do 34o 1259 30 111165 and over15 428 22 628

-54-

SELECTED RURAL COUNTIES -I MADAM

ALABANA-FIGURE 1

State Showing Census Employment Survey Area

FI

C -f

F ---

f rn St PA-M_

TAo UVDC L c

SUC

TIW O

OF KENTUCKY V

IRG

INIA

AND

WEST V

IRG

INIA

INCLUDING

CENSUS

EMPLOYM

NT SURVEY

AREA

APPL

AC

HIA

-FIGU

RE

2

LU

gt

w~

CL

o

u 0

lzol

jo w

0

X

-56-

SELECTED RURAL COUNTIES IN ARKANSAS

ARKANSAS-FIGURE 3

State Showing Census Employment Survey Area

r~~mlUMM seem

~upm

frn

ps W obull0=9=

-O

NU EM

-0 | - |

I

-57-

SEKECTED RURAL COUNTIES IN CALIFORNIA

CALIFORNIA-FIGURE 4

State Showing Census Employment Survey Area

m~Now

K

VN

-

cm --

vvmwc -

I r --

CL

t I I 90 I

-58-

SELECTED RURAL COUNTIES IN M

ISSOURI

MISSO

UR

I-FIGU

RE

5

State Showing Census Employment Survey Area

W

z

Jj

A

j

w

U

tSf

j -

-

a -51

-59shy

SELECTED RURAL COUNTIES IN NEW MEXICO

NEW MEXICO-FIGURE 6

State Showing Census Employment Survey Area

~~UAM aADS1IMB3N

i

l f - - -

77PALGML

A--V

LWN

CA row

J Lu NiA Ii ke7IOA ItENSUSt EMPL0V_MENT SURVEy_ AREA

-60-

S1KLECTED RURAL

CO

UN

TIES IN

NORTH

CARO

LINA

ORTII

CARZOLll A-FIG

UR

E

6

Sta

te S

hovin

g C

ensus E

mploym

oent Survey A

rea

I

( -

-

I ZL

bull

o

-

STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW

BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF

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