Factors affecting the utilization of manpower inrural and ...
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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
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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
-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
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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
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
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
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
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TAo UVDC L c
SUC
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IRG
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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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ps W obull0=9=
-O
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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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-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
~~UAM aADS1IMB3N
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77PALGML
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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
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
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
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AND
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IRG
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INCLUDING
CENSUS
EMPLOYM
NT SURVEY
AREA
APPL
AC
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-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
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5
State Showing Census Employment Survey Area
W
z
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A
j
w
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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
CO
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NORTH
CARO
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6
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bull
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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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State Showing Census Employment Survey Area
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SEKECTED RURAL COUNTIES IN CALIFORNIA
CALIFORNIA-FIGURE 4
State Showing Census Employment Survey Area
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SELECTED RURAL COUNTIES IN M
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SELECTED RURAL COUNTIES IN NEW MEXICO
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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
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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State Showing Census Employment Survey Area
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SELECTED RURAL COUNTIES IN ARKANSAS
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SEKECTED RURAL COUNTIES IN CALIFORNIA
CALIFORNIA-FIGURE 4
State Showing Census Employment Survey Area
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SELECTED RURAL COUNTIES IN M
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NEW MEXICO-FIGURE 6
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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
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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
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 ---
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TAo UVDC L c
SUC
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IRG
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AREA
APPL
AC
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2
LU
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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=
-O
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-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 --
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-58-
SELECTED RURAL COUNTIES IN M
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RE
5
State Showing Census Employment Survey Area
W
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A
j
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
CO
UN
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NORTH
CARO
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CARZOLll A-FIG
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6
Sta
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oent Survey A
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I
( -
-
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bull
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-
STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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
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INCLUDING
CENSUS
EMPLOYM
NT SURVEY
AREA
APPL
AC
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-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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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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NORTH
CARO
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CARZOLll A-FIG
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6
Sta
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ensus E
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-
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bull
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-
STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
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
-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
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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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
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
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F ---
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SUC
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AREA
APPL
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2
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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=
-O
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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
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-58-
SELECTED RURAL COUNTIES IN M
ISSOURI
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5
State Showing Census Employment Survey Area
W
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j
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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CARO
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
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
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AND
WEST V
IRG
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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
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CARZOLll A-FIG
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6
Sta
te S
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ensus E
mploym
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( -
-
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bull
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-
STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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
-------------------
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
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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
-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
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
-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
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
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
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NORTH
CARO
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CARZOLll A-FIG
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6
Sta
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ensus E
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bull
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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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F ---
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SUC
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AREA
APPL
AC
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2
LU
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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=
-O
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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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5
State Showing Census Employment Survey Area
W
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j
w
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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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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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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AREA
APPL
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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=
-O
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-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
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5
State Showing Census Employment Survey Area
W
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A
j
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
CO
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NORTH
CARO
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CARZOLll A-FIG
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6
Sta
te S
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ensus E
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STAFF PAPERS ARE PUBLISHED WITHOUT FORMAL REVIEW
BY THE UNEMPLOYMENT AND UNDEREMPLOYMENT INSTITUTE STAFF
-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 ---
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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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-59shy
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
-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