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The original documents are located in Box 59, folder "1976/05/05 - Economic Policy Board
(2)" of the James M. Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 59 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
April 29, 1976
MEMORANDUM FOR:
DAVID LISSY
FROM:
BILL DIEFENDERFER
RE:
Summary "Youth Employment and Maximum
Wages" (DOL Bulletin 1657)
The Study sets as its goal an understanding of the relationship between
minimum wage levels and youth unemployment. It would not be inaccurate
to say that the authors conclusion is "we're not sure. "
(1) "The most-important and at the same time discouraging
conclusion to emerge from available analyses is that they do not
permit confident conclusions about the effect of minimum wage laws
upon the employment experience of teenagers."
(2) "From all this it should not be concluded that mininum
wage laws have no effect. Rather, the fact is that time series
analyses does not permit an adequate separation of various, nominally
independent, factors affecting teenage employment problems. 11 (p. 45)
(3) "Independent studies of the problem were reviewed and
they were almost equally divided between "yes, minimum wage does
effect youth unemployment" and "No, it does not. " The bulletin states
"these studies provide no consensus. 11 (p. 30)
The study is dated (1970), however, some observations made in drawing
these conclusions are worth reviewing.
A. General Observations
1. Non-Economic reasons for high teenage unemployment
rates (p. 4)
A. Casual attitude toward job hunting
B. Frequent entrance-exit from labor market
C. Limited horizons in job search activities
FORD & LIBRA 078879
2
2. Since 1963 the gap between adult and youth
employment has widened from 4:1 in 1963
to 5. 5:1 in 1967 (p. 5)
3. Negro youth unemployment was 125% higher
than whites between 1965-68. (p. 5)
4. In poverty areas (nations 100 largest cities)
teenage unemployment was 20% while nationwide
it was 12. 7%. (p. 6)
5. Some basis for inference that increases in the
minimum wage have offset manpower program
gains. (p. 45)
6. Some evidence to show minimum wage rate
adjustment have greater adverse effects on 16-17
year olds than upon 18-19 year olds. (p. 45)
7. A survey of employers showed availability and
insurance costs as decisive factors in decisions
about hiring youth. (p. 72)
8. The 1961 and 1966 minimum wage amendments
included large increases in the numbers of
workers covered, especially in the trades and
services, in which disproportionately large numbers
of youth are employed. The studies were unable
to say which was the villain. - t he minimum wage
increase on the expanded coverage.
B. Observations on State Experience with Minimum Wage
(1) Except for several Mid-Western agricultural states
the motivation and willingness of youth to accept
a job which didn't pay $2. 60 to $3.00 an hour
( in 1968) were seen as key factors in youth
unemployment (p. 130)
(a) Absenteeism is high as is turnover
(b) Don't stick to the job
3
(c) Stay only few days
(d) Don't show up
(e) Long hair
(f) Less dependable than adult
(g) Lack sense of responsibility
(3) The Pennsylvania Summary was offered as a conclusion
to State experience:
"In general, there seems to be some sort of standoff.
The youth in the labor force are unwilling to accept work at
either the State or Federal minimum wage levels and hardly
anyone can be persuaded to work at the State youth differential
wage. The employer is also unwilling to pay more than the
minimum wage or differential unless he can hire someone who is
skilled or at least had some type of vocational training. All
people interivewed agreed that there is growing pressure on the
employer to hire at more than the minimum wage. However, they
also agreed that the employer is reluctant to do so because of the
quality of the workers he is receiving. " (p. 131)
It is my opinion that the study does identify facts about minimum wage
and youth unemployment that are useful to decision-makers:
(1) The 1961 and 1966 amendments to the minimum wage law,
increased the rate as well as greatly expanded coverage. During that
period of time and up until 1968 (end of the study) youth unemployment
increased at a faster rate than adult unemployment.
(2) Although the minimum wage rate was not cited by employers
as a significant consideration when hiring youth they did list, insurance
costs, absenteeism, don't stick to the job, less dependable than adult.
All of these things translate into dollar costs to the employer. The
significant question is at what point would a reduction of the minimum
wage offset the preceived economic disadvantages in hiring youth.
I have marked up the study at places I felt of interest.
THE WHITE HOUSE
WASHINGTON
April 29, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
DAVID LISSY OMA
SUBJECT:
Youth Unemployment and the
Minimum Wage
Bill Diefenderfer read the DOL study which is to
be discussed at the EPB and prepared the attached
review which I think will be of interest to you.
Attachment
THE WHITE HOUSE
WASHINGTON
April 23, 1976
MEMO TO: ECONOMIC POLICY BOARD EXECUTIVE COMMITTEE MEMBERS
FROM:
ROGER B. PORTER
RBP
SUBJECT: Youth Unemployment and the Minimum Wage
A copy of a study on "Youth Unemployment and Minimum Wages"
prepared by the Department of Labor in 1970 is attached.
The subject of proposals to index the minimum wage and the
problem of teenage unemployment will be discussed at an
EPB Executive Committee special session the week of May 3rd.
FORD & . GIVND
YOUTH
UNEMPLOYMENT
AND
MINIMUM
WAGES
BULLETIN 1657
U.S. DEPARTMENT OF LABOR
Bureau of Labor Statistics
1970
FORD & LIBRARY GERALD
YOUTH
UNEMPLOYMENT
AND
MINIMUM
WAGES
BULLETIN 1657
U.S. DEPARTMENT OF LABOR
George P. Shultz, Secretary
BUREAU OF LABOR STATISTICS
Geoffrey H. Moore, Commissioner
1970
FORD & 0780
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402 - Price $1.50
Foreword
In April 1969, the Secretary of Labor requested the Bureau of Labor
Statistics to take the lead in Departmental efforts to study the relationship
between minimum wage levels and the youth unemployment problem. The
Secretary stated that he "would expect the study to draw upon ex-
perience throughout the free world; to develop insights through the use
of regression analysis with respect to past relationships; to review the
experiences and problem of industries employing young people; and to
explore such factors as the attitudes of youth, including inner-city youth,
toward entry wages."
Special thanks are due the authors of the various chapters: Karl Egge,
Thomas W. Gavett, Melvin Goldberg, Harvey R. Hamel, Hyman B. Kaitz,
Juliet F. Kidney, Andrew I. Kohen, Solomon B. Levine, John W. Piercey,
Norman J. Samuels, Clara F. Schloss, John R. Shea, Gerald G. Somers,
Irvin F. Wingeard, Fred A. Zeller. Further information on the authors
is given at the beginning of each chapter. In addition, acknowledgement
is due Philip Arnow, Director of the Office of Policy Planning and Re-
search in the Department of Labor, John P. Gould, Special Assistant to
the Secretary for Economic Affairs, Neal Q. Herrick, Director of the
Office of Planning in the Wage and Labor Standards Administration, and
Howard Rosen and Stuart H. Garfinkle of the Office of Manpower Re-
search in the Manpower Administration for their valued aid and counsel.
The Office of Manpower Research was especially helpful in developing and
financing the study by the Center for Human Resource Research at the
Ohio State University. Within the Bureau of Labor Statistics, the sub-
stantial help of Sophia C. Travis, of the Office of Manpower and Em-
ployment Statistics, and Matilda R. Sugg, formerly with the Office of
Foreign Labor and Trade, should also be recognized. Thomas W. Gavett,
Assistant Commissioner, Office of Wage and Industrial Relations, directed
the study, and the results owe much to his energy and initiative.
-GEOFFREY H. MOORE
Commissioner of Labor Statistics
iv
CHAPTER I
Introduction
In the 20-year span between 1948 and 1968,
seeking short-term or part-time employment
the unemployment rate for youths 16-19 years
opportunities. Military manpower requirements
old 1 increased from 9.2 percent to 12.7 percent.
have been erratic during the last two decades.
The teenage unemployment rate always has been
The Korean war and the Viet Nam war have
high compared to adults, but the ratio of the
placed their demands on youth; uncertainties of
teenage unemployment rate to the rate for per-
the draft have compounded problems of youth
sons age 25 and over has increased from 3.2 to 1
employment.
in 1948 to 5.5 to 1 in 1968.
The concern over teenage unemployment is
During those 20 years, the size of the teenage
not solely a concern over wasted human re-
population and labor force has changed signifi-
sources, though that surely is present. Unem-
cantly, but not smoothly over time. The low
ployment of teenagers represents, in a sense,
birth rates during the Great Depression, fol-
failures and difficulties in adjusting to the life
lowed by unusually high birth rates after World
of work-problems, to be sure, which are not
War II, have placed severe pressures upon the
unique to those teenagers who are unemployed.
economy to cope with these irregular growth
What effects this experience may have on the
patterns.
future careers of teenagers is uncertain, but it
Compounding the effects of irregular growth
is unlikely to be helpful. The relationship be-
in the teenage population has been the need to
tween unemployment among teenagers and so-
adjust to major shifts in the industrial composi-
cial discontent and disorder is another concern
tion of employment for teenagers. The move-
present if less frequently voiced.
ment of jobs and people from farm to city has
No single factor explains the high rates of
affected teenagers even more than adults. An
unemployment experienced by youth. Imperfect
increasing proportion of teenagers has been en-
mechanisms for finding out about the world of
rolled in school, with an attendant increase in
work and the existence of jobs, uneven changes
the number of young people entering and leav-
in population, changes in the composition of de-
ing the labor market and an increasing number
mand, legal restrictions upon the employment
of youth, as well as general economic condi-
tions, have all played a part.
One factor that may contribute to the adverse
employment experience of youth is the effects of
Prepared by Thomas W. Gavett. The author wishes to
legal minimum wages-the central concern of
acknowledge the valuable help of Sophia Travis, Susan
this study. Since the Fair Labor Standards Act
Holland, Patricia Smith, Arthur Sackley, and Douglas
was passed in 1938, the law has been amended
Fridrich of the BLS staff. Sylvia Weissbrodt prepared
periodically to increase the basic minimum
the sections on Federal and State law.
under the law from the 25-cent minimum origi-
Footnotes appear on p. 16. Appendix tables appear
nally set in 1938 to $1.60 in 1968. Coverage
on pp. 17-29.
1
2
under the law, originally fairly restricted, was
or because of legal restrictions on the hiring of
not basically changed until the 1960's. While the
teenagers, or because they must pay "too high"
minimum wage has been increased and cover-
a wage? If minimum wage laws have any im-
age extended during the period that has wit-
pact on employer decisions, we might expect to
nessed increased unemployment of teenagers,
find that employers have raised age or educa-
causal relationship has been proved. The effects
tion hiring requirements as a consequence of
of the level and coverage of the minimum wage
recent changes in the law. Further, if there is
upon youth employment and unemployment in
an effect, differences would exist in employment
the past requires more careful analysis, not for
patterns and hiring practices among employers
historical reasons alone, but rather for what
who are roughly similar-the same area, the
implications experience may have for the fu-
same industry, about the same size-but differ
ture.
with respect to coverage under the law.
EXPECTATIONS. If young people are looking for
Analytic framework
and expect to get a wage which is substantially
Although a substantial amount of informa-
above rates actually paid in the market, the
tion is available on the labor force experience of
legal minimum would not be a significant factor
youth and on developments in minimum wage
in explaining unemployment problems of youth.
legislation, many questions about the relation-
Neither would a lower legal minimum for youth
ship between minimum wages and the problem
be an effective measure for increasing employ-
of youth unemployment are still to be answered.
ment of youth if they are unwilling to accept
The following are the issues to which this study
work at that level. Whether or not wage expec-
has been directed.
tations of youth are affected by the level of the
minimum wage requires investigation. Some
PAST EFFECTS. Have changes in the FLSA
basis for evaluation of the "reasonableness" of
had a significant direct effect upon wages paid
wage expectations would be to compare differ-
to teenagers? Have increases in the level of
ent teenage groups. Do unemployed teenagers,
minimum wages and coverage of the law in-
for example, have wage expectations which are
duced employers to lay off teenagers or avoid
roughly comparable to wages actually received
hiring teenagers, or to prefer older, more ex-
by employed teenagers? Also relevant to know
perienced workers? Wages have generally been
would be whether employed teenagers actually
increasing and we know that minimum wage
receive wages that are as high as they had ex-
legislation has had an impact on wages of some
pected when they looked for a job or whether
workers. Little evidence has been available,
they had to adjust expectations down to reality.
however, on the effect of minimum wages on
Further, what effect does the experience of
wages paid to teenagers separate from the con-
being unemployed or of having had a job in the
sequence of general economic developments.
past have on wage expectations of youth?
The employment or the unemployment rate of
teenagers can be affected by the growth of the
ADVERSE EFFECTS OF A YOUTH DIFFERENTIAL
relative size of the teenage labor force, the pro-
MINIMUM. A lower minimum wage for youth
portion of teenagers enrolled in school, and
were put into effect, and if total employment
other factors. Minimum wage effect on employ-
and total earnings of youth increased, would
ment and unemployment must be separated
there be other, undesired effects? Information
from these other developments.
is needed on the contribution teenagers make to
family income, whether the contribution is im-
EMPLOYER HIRING PRACTICES. More informa-
portant to the family or not, whether or not the
tion is needed about current employer hiring
family would suffer if the teenager's wage rate
practices. Do employers frequently stipulate a
was lower.
minimum age or educational requirement that
Of greater concern is the question of whether
excludes some or all teenagers? Do employers
youth differential wage would mean a shift of
avoid teenagers because they are "unreliable,"
employment opportunities away from other
3
groups to teenagers. Would a youth differential
Where wages of youth are substantially below
expand opportunities for teenagers only as a
those of adults (whether due to a differential
consequence of redistributing unemployment to
youth minima or other factors), are youth un-
older workers? If so, which group of older
employment rates proportionately lower? Does
workers would be disadvantaged?
foreign experience indicate there would need to
be a substantial difference in minimum wages
EFFECTS OF EXISTING DIFFERENTIALS UNDER
between teenagers and adults to have any sig-
FEDERAL LAW. Under present regulations, pay-
nificant effects on youth employment? Given
ments below the Federal minimum are permit-
differences in custom and institutions, to what
ted in the case of students and learners. About
extent is foreign experience transferable to the
6,000 establishments have been granted certifi-
United States?
cates to authorize payment of lower wages, but
indications are that firms have not fully utilized
Changes in the labor force status of youth
these exemptions. Does the inability of employ-
POPULATION AND LABOR FORCE. The population
ers to utilize fully exemptions granted reflect
of teenagers has not increased gradually in the
unwillingness of teenagers to work at lower
period since World War II. Rather, the effects
wages, or employers' unwillingness to employ
of low birth rates during the depression and
teenagers? Information on the extent of utiliza-
major increases in that rate during and after
tion would also be of interest in assessing the
the Second World War have resulted in great
effectiveness of this method of creating a spe-
imbalance in the labor market.
cial minimum wage for youth.
The civilian noninstitutional population of
EXPERIENCE IN THE STATES. A number of
persons 16- to 19-years old-the group of teen-
States which have minimum wages exempt
agers relevant for labor market analysis-in-
young people or have a separate minimum for
creased 62 percent between 1948 and 1968. (See
the young. Although States generally have min-
table 1.1.) By the late 1940's and early 1950's,
imums below the Federal, their experience is
however, the effect of depressed birth rates in
relevant since they have in the past, and still do,
the 1930's could easily be seen. Teenage popula-
cover some industries or establishments exempt
tion decreased from about 8,500,000 in 1948 to
from the Federal law. Whether or not differ-
7,900,000 in 1951, teenagers in the latter year
ences in the level of minimum wages among the
had been born in the period of especially low
States, or differences in treatment of youth
birth rates. By 1956, this 7-percent decrease in
under State minimum wage laws, explains dif-
teenage population had been offset. In subse-
ferences in employment experience of youth in
quent years the effect of increased birth rates
the various States requires further exploration.
during the 1940's began to be felt. In the 5
years between 1955 and 1960, the teenage popu-
FOREIGN EXPERIENCE. Other nations have not
lation increased 22 percent, compared with a
had the same experience with youth in the labor
3-percent increase during the preceding 5 years.
force as the United States, and other nations do
In the following 5 years, this group increased
not have comparable systems of minimum wage
another 27 percent as the children born in 1946
laws. Basic information on relative rates of un--
and 1947 reached the age of entrance to the
employment for youth, the nature of the legal
labor market.
minimum wages, and the structure of wages in
Only in the last few years has the effects of
other countries is needed. An examination of
rapid increases in birth rates during the forties
the relationship between wages and youth un-
-an increase from 19.4 live births per 1,000
employment in other countries would provide
population in 1940 to a peak of 26.6 in 1947-
relevant insights for the United States. Where
ceased to dramatically effect the rate of growth
youth unemployment rates are relatively low, is
of the teenage population. Growth in the years
the situation attributable to a differential mini-
between 1965 and 1970 will be only 12 percent.
mum wage for youth or to other factors such as
In the decade of the seventies, teenage popula-
placement methods and customs of work?
tion will increase only 10 percent in the first 5
4
Table 1.1 Population, labor force, employment, unemployment, and school enrollment
16- to 19-year olds, both sexes, all races, annual averages
[In thousands]
Percent change, year to year
Civilian
Civilian
fabor
noninstitu-
Civilian
Unem-
School
force
Year
tional
labor
Employed
ployed
enroll-
Civilian
Civilian
School
partici-
population
force
ment 1
moninstitu-
labor
Employed
Unem-
enroll-
pation
tional
force
ployed
ment
rate
population
1948
8,451
4,435
4,028
407
4,152
52.5
1949
8,216
4,289
3,712
575
3,884
-2.8
-3.3
-7.8
41.3
-6.5
52.2
1950
8,145
4,216
3,703
513
4,101
-.9
-1.7
-.2
-10.8
5.6
51.8
1951
7,868
4,105
3,767
336
4,099
-3.4
-2.6
1.7
-34.5
52.2
1952
7,924
4,063
3,718
345
4,158
.7
-1.0
-1.3
2.7
1.4
51.3
1953
8,014
4,026
3,719
307
4,360
1.1
-.9
-11.0
4.9
50.2
1954
8,224
3,976
3,475
501
4,675
2.6
-1.2
-6.6
63.2
7.2
48.3
1955
8,365
4,093
3,643
450
4,686
1.7
2.9
4.8
-10.2
.2
48.9
1956
8,434
4,296
3,818
478
4,935
.8
5.0
4.8
6.2
5.3
51.0
1957
8,613
4,276
3,780
496
5,148
2.1
-.5
-1.0
3.8
4.3
49.6
1958
8,986
4,260
3,582
678
5,594
4.3
-.4
-5.2
36.7
8.7
47.4
1959
9,619
4.492
3,838
654
6,119
7.0
5.4
7.1
-3.5
9.4
46.7
1960
10,188
4,840
4,129
711
6,416
5.9
7.7
7.6
8.7
4.9
47.5
1961
10,513
4,935
4.107
828
6,494
3.2
2.0
-.5
16.5
1.2
46.9
1962
10,653
4,915
4,195
720
6,886
1.3
-.4
2.1
-13.0
6.0
46.1
1963
11,371
5,138
4,255
883
7.765
6.7
4.5
1.4
22.6
12.8
45.2
1964
12,113
5,390
4,516
872
8,378
6.5
4.9
6.1
-1.2
7.9
44.5
1965
12,931
5,910
5,036
874
8,983
6.8
9.6
11.5
.2
7.2
45.7
1966
13,593
6,557
5,721
836
9,303
5.1
10.9
13.6
-4.3
3.6
48.2
1967
13,482
6,519
5,682
838
9,289
-.8
-.6
-.7
.2
-.2
48.4
1968
13,698
6,618
5,780
839
9,870
1.6
1.5
1.7
.1
6.3
48.3
1 Total school population in month of October
years and 2 percent in the last.
the whites than others attend school, 22 percent
Changes in the size of the teenage civilian
and 14 percent, respectively.
labor force reflect population changes, though
Historically, the proportion of girls 18-24
moderated to some extent by a decline in the
years old enrolled in school (mainly at the col-
labor force participation rate of teenagers. The
lege level) has been below that for men. The
increasing proportion of teenagers enrolled in
rate of increase between 1947 and 1968 was
school is the most important reason for that
greater for women than for men, but they still
decline in participation rates. In fact, the par-
had not reached the high level for men.
ticipation rate of teenagers enrolled in school
has increased in the last 20 years, while it has
EMPLOYMENT AND UNEMPLOYMENT. Despite
declined somewhat for those not in school.²
the substantial 49-percent increase in the teen-
However, the participation rate is much lower
age civilian labor force between 1948 and 1968,
for those enrolled in school, and the substantial
compared with an increase of 30 percent for all
increase in the proportion of teenagers enrolled
persons, the economy has absorbed an imposing
has brought the overall participation rate down
number of teenagers. Employment of teenagers
from about 53 percent in 1948 to 48 percent in
has increased by 1.8 million, or about 44 per-
1968.3
cent, compared with an overall increase in em-
In the past two decades the number and pro-
ployment of 30 percent. The rapid growth in
portion of youths enrolled in school has in-
demand for teenagers was not, however, ade-
creased substantially. The proportion of 16 and
quate to absorb the available supply.
17 year-olds in school rose by one-third. to 90
The unemployment rate for teenagers has al-
percent of their population in October 1968,
ways been high relative to that of adults. The FACTORS
while the percentages for the 18-19 year olds
casual methods teenagers use to find jobs, their
and 20-24 year olds more than doubled to 50
frequent entrance to and exit from the labor
percent and 21 percent, respectively. (See
market, and the limited horizon of their job-
tables A3, A4, and A5.) A somewhat greater
search activities are major contributing factors.
proportion of white than teenagers of other
In every year during the postwar period, the
races are in school. However, among persons
unemployment rate of teenagers has been sig-
20-24 years old, a much larger percentage of
nificantly higher than that of persons 25 and
FORD
5
over, ranging from about 170 percent higher in
fected by erratic changes in birth rates, each
1954 to 450 percent higher in 1968.
had higher unemployment rates than adults,
General economic conditions affect teenagers
each had substantially higher rates during re-
as they do other workers. The recessions of
cessions, and, beginning in 1963, each experi-
1949, 1954, 1958, and 1961 brought marked in-
enced a material deterioration in its position
creases in the unemployment rate of teenagers.
relative to adults in the same color-sex group.
(See table A6.) Since teenage unemployment
Despite these similarities in experience of
rates are always higher than those of adults,
various groups of teenagers, notable contrasts
the story of what has happened to the relative
appear in employment and unemployment de-
position of teenagers in the United States is
velopments among youths. From 1955 to 1963,
better revealed by relating the teenage rates to
no significant or sustained increases in Negro
the rate for persons 25 and over.
youth employment took place, while employ-
From 1948 to 1962, the ratio of the teenage
ment rose 600,000, or 19 percent, for white
jobless rate to that for persons 25 and over fluc-
youth. During this period, the Negro teenager
tuated between 2.7 and 3.5. Beginning in 1963
unemployment rate about doubled, compared
the divergence increased markedly. In that
with a rise of one-half for the white teenage
year, when the teenage jobless rate rose to 17
rate. Although employment has increased for
percent, the ratio increased to 4 to 1. Since
Negro youth since 1963, their unemployment
1963, the gap has continued to widen, reaching
has also continued to edge up. In contrast, the
a peak of 5.5 to I in 1968. (See table 1.2.)
number of unemployed white 16-19 year-olds
In 1963, the relative position of teenagers
has declined since 1963.
began to deteriorate markedly as persons born
In the early 1950's the Negro teenage rate
in 1947 entered the labor force. Not surprising
averaged about one-quarter higher than the
is the fact that as they "graduated" to the 20- to
white rate. Beginning in the mid-1950's, the
24-year age group in the last 2 years, the rela-
jobless rate of Negro relative to white teenag-
tive position of that age group has begun to
ers began to further deteriorate, becoming al-
deteriorate. (See table A11.)
most double the rate of whites. The economic
resurgence since 1964 brought the unemploy-
COLOR-SEX-AGE DIFFERENCES. Population and
ment rate of white teenagers down to 11 from
labor force patterns were similar for white and
15 percent, but the Negro rate failed to show
Negro + youth and for males and females in the
comparable improvement. As a consequence,
16-17 and 18-19 age groups in the period after
Negro teenage jobless rates ran about 125 per-
World War II. Each color-sex group was af-
cent higher than the rate for whites during the
Table 1.2. Ratio of unemployment rates, 16 to 19 years,
last 3 years
to rate for 25 years and over, annual averages
If we look at white-Negro unemployment
rates among teenage males and females sepa-
White
All others
Year
Total
Male
Female
rately, we find that the jobless rate is higher for
Total
Male
Female
Total
Male
Female
both Negro men and women. In 1968, for exam-
ple, the rate for Negro teenage males was about
1948
3.17
3.63
2.44
3.30
3.77
2.41
2.49
2.27
2.44
1949
2.79
2.98
2.51
2.89
3.09
2.54
2.35
2.13
2.84
120 percent higher than the rate for whites, and
1950
2.77
3.02
2.38
2.95
3.26
2.48
1.96
1.80
2.23
1951
2.93
3.38
2.13
3.00
3.64
2.00
2.44
it was almost 140 percent higher for females.
2.19
2.82
1952
3.54
4.05
2.67
3.77
4.40
2.68
2.33
1.93
2.98
1953
3.17
(See table A12.) Relative to white teenagers,
3.43
2.67
3.41
3.76
2.76
2.26
2.00
2.89
1954
2.68
3.07
2.15
2.88
3.44
2.12
1.91
1.57
2.64
Negro females have always been worse off than
1955
3.06
3.41
2.49
3.25
3.77
2.46
2.08
1.70
2.78
1956
3.36
3.58
2.87
3.48
3.89
2.77
2.66
2.21
3.30
Negro males. In the last two decades, both male
1957
3.41
3.88
2.72
3.42
4.11
2.64
2.98
2.71
3.61
1958
2.84
3.05
2.51
2.82
3.14
2.40
2.63
2.25
3.42
and female Negro teenagers have slipped rela-
1959
3.32
3.56
2.81
3.36
3.78
2.73
3.00
2.63
8.74
1960
3.27
3.56
2.96
3.46
3.68
3.02
2.89
2.64
3.40
tive to whites. The Negro male teenager has
1961
3.11
3.29
2.81
3.19
3.41
2.79
2.66
2.39
3.14
1962
3.34
3.59
3.04
3.50
3.81
2.98
2.84
2.37
3.60
slipped even more than the female. His jobless
1963
4.00
4.30
3.51
4.08
4.54
3.43
3.70
3.33
4.28
1964
4.26
4.79
3.61
4.35
4.90
3.55
3.79
3.52
4.21
rate, relative to whites, has about doubled; hers
1965
4.63
5.04
3.93
4.62
5.16
3.89
4.49
4.24
4.95
1966
4.92
5.32
4.27
4.87
5.25
4.03
5.18
5.59
has increased about two-thirds. While the
4.84
1967
4.92
6.15
3.65
4.58
5.63
3.35
5.57
6.43
4.93
1968
5.52
6.44
4.38
5.24
5.94
Negro male's relative position has deteriorated
4.17
6.23
6.91
5.63
more than that of the Negro female, the jobless
6
rate for Negro females still is, in absolute terms
These data underscore the widespread nature
or relative to whites, much higher than that of
of the unemployment problem for Negro youth.
the Negro male.
Negro 16-19 year-olds outside the poverty
During the 1950's, the unemployment rate for
areas had almost as high an unemployment rate
all teenage males ran about 10 percent higher
as those in poverty neighborhoods. On the other
than the rate for females. Since 1963, however,
hand, the poverty area rates for white teenag-
the situation has been reversed, and the teenage
ers were about 30 percent higher than for
male's unemployment rate is about 10 percent
whites in the other neighborhoods of large cit-
lower than the female rate. The relative deterio-
ies. Moreover, the employment situation for
ration in the position of females compared with
white youngsters in the poverty areas was
males has occurred primarily among white fem-
much better than for Negro youngsters outside
ales. (See table A12.)
poverty neighborhoods.
The experience of 16-17 and 18-19 year age
categories differ from one another. The
DURATION AND SEASONALITY OF UNEMPLOY-
younger group still heavily represent those in
MENT. While unemployment rates of young per-
secondary schools in most months of the year
sons are substantially higher than those for
and are more apt to be subject to legal or work-
older workers, the duration of unemployment is
connected restrictions. The 18-19 year-olds are
much shorter. About 55 percent of the teenag-
largely out of secondary schools, but the boys
ers were unemployed less than 5 weeks during
are subject to draft calls.
the year, compared with 43 percent of those
In the last 20 years, the unemployment rates
over age 24.6 Conversely, less than 20 percent
for 16-17 year-olds has been consistently higher
of young persons had been unemployed 15
than that of the older teenage group, and the
weeks or more during the year compared with
postwar increase in rates was sharper for
25 percent of persons age 25 and over. Among
16-17 year-olds. The increase in unemployment
those who were unemployed, relatively more
rates for teenage girls, previously noted, was
teenage girls had been jobless for less than 5
sharpest in the 18-19 age group. (See tables A7
weeks compared with males. Unemployment
and A8.)
was not only more frequent among Negro than
Unemployment rates for Negro 16-17 and
white youths, but relatively more Negroes had
18-19 year-olds closely followed the pattern of
been unemployed a total of 15 weeks or more
their combined total. In both 2-year groups,
during the year. About 16 percent of the white,
the rates for Negroes rose more than that for
but 25 percent of Negro teenagers had been
whites between 1948 and 1963 and declined less
unemployed that long during 1967.
afterward. In 1967 and 1968, the Negro rates
The monthly data on teenage unemployment
were about 30 percent for 16-17 year-olds and
indicate much the same story as the annual
23 percent for 18-19 year-olds, both rates more
work experience data. In 1968, about 63 percent
than double those for comparable white age
of all unemployed 16-19 year-olds had been
groups.
seeking work for less than 5 weeks. (See table
A17.) Another 28 percent had been jobless 5 to
POVERTY AREAS. In the poverty neighborhoods⁵
14 weeks, and the remaining 9 percent had
of the Nation's 100 largest cities, the teenage
sought work for 15 weeks or longer. The pro-
unemployment rate was 20 percent in 1968, sub-
portions are not comparable to data from the
stantially above the national average of 12.7
annual work experience survey, since the latter
percent. Only 100.000 unemployed 16-19 year-
includes all persons who had been in the labor
olds, one-eighth of the U.S. total, lived in these
force anytime during the year-not just the
poverty neighborhoods. However, Negro
youngsters were a disproportionately large
current month-and reports total length of un-
concentration. About one-third of all unem-
employment during the year-not just the
ployed Negro 16-19 year-olds lived in these 100
length of a current spell of unemployment.
poverty neighborhoods; the comparable propor-
Almost 75 percent of total teenage unemploy-
tion was only one-fifteenth for white teenagers.
ment in 1968 arose because of entrance or
7
reentrance into the labor force. The largest
gust) remained between 86 and 91 percent of
group of jobless teenagers-330,000 or 39 per-
the annual average unemployment level
cent of the total-were new entrants, persons
throughout the 1948-66 period. Changes in un-
who had never held a full-time civilian job for 2
employment definitions introduced in January
weeks or longer. A higher proportion of girls
1967 tended to lower the school-year average
(47 percent) than boys (32 percent) were new
unemployment level moderately for youth. Con-
entrants. Another 280,000 unemployed 16-19
siderably more variation appeared between the
year-olds (34 percent of the total) were reen-
June-July unemployment averages (the two
tering the labor force-most of them after at-
high months) and that for the entire year
tending school.
(ranging from about 137 to 169), but no trend
Just over 25 percent of all teenage jobseekers
is apparent. (See table A19.)
in 1968 were persons who began seeking work
Between 1963 and 1966, the proportion of un-
immediately after losing or leaving a job. Ap-
employed teenagers seeking part-time jobs rose
proximately 130,000 (15 percent of all unem-
steadily-from 31.4 to 36.1 percent. (See table
ployed teenagers) were seeking work because
A20.) This shift resulted from a drop in the
they had lost their last jobs. Another 100,000
number looking for full-time work while the
(12 percent of the total) had left their previous
number seeking part-time jobs remained con-
jobs and immediately began to look for other
stant. The substantial rise in school enrollment
employment.
rates for teenagers since the early 1960's has
During the 1968 school year, teenage jobless-
been reflected in a rapid increase in part-time
ness ranged from about 600, to 775,000, but in
employment. For example, from 1963 to 1966,
June and July it soared to 1.6 and 1.3 million,
voluntary part-time employment for 16-19
respectively. (See table A18.) For the entire
year-olds rose by about 45 percent, while the
year, teenage unemployment averaged 840,000,
increase in full-time employment was 25 per-
or about 140,000 above the school-year average;
cent. In 1966, 41 percent of all employed teenag-
virtually all of this difference is accounted for
ers were voluntarily working part time; only 3
by the summertime increase in those seeking
years earlier the proportion had been 37 per-
full-time employment. During the school
cent. As would be expected, the proportions
months, an average of 335,000 16-19 year-olds
working and seeking part-time employment are
were seeking full-time work; this figure rose to
substantially higher during the school months
an average of 900,000 for the 3 summer
than for the entire year.
months. In contrast, the number of teenagers
Unemployment rates for teenagers seeking
seeking part-time jobs was about the same
full- and part-time work both declined over the
(360,000) during the school year and the sum-
1963-66 period. However, the full-time rate
mer months.
dropped more-from 18.7 to 13.7 percent-and
Approximately 43 percent of all unemployed
the gap between the full- and part-time rates
teenagers in 1968 were seeking part-time jobs.
narrowed somewhat. School-year unemploy-
During the school year this proportion was up
ment rates followed the same pattern as the
to 53 percent. A larger proportion of teenage
full-year rates. However, the rate for teenagers
boys (58 percent) than girls (47 percent) was
seeking part-time work was moderately lower
looking for part-time work during the school
during the school months than for the entire
months. School enrollment rates are higher for
year. Changes in concepts make comparisons
boys and, therefore, they have a greater need to
between 1966 and 1967 impossible, and the
find part-time jobs after school and on the
overall teenage unemployment picture and its
weekends.
full-time, part-time composition did not change
In the last 20 years, there has been no signifi-
between 1967 and 1968.
cant change in the composition of youth unem-
The composition of teenage employment
ployment in the summertime or in the school
year. The teenage level during the school year
EMPLOYMENT BY INDUSTRY. The most striking
(the 9 months excluding June, July, and Au-
change in the industrial composition of employ-
8
ment of teenagers has been the shift out of
for a longer period, as noted below.) Among the
agriculture. In the late 1940's, about 20 percent
16-19 year-old group, employment is heavily
of all employed teenagers worked in agricul-
concentrated in retail trade, services, and man-
ture; in the 1966-68 period the proportion was
ufacturing. In 1968 these three industries em-
down to 7 percent. (See table A21.) Agricul-
ployed 75 percent of all working 16-19 year-
ture, however, still employs a sizable proportion
olds. Between 1963 and 1968, the proportion of
(about 11 percent) of all 16-19 year-old boys.
16-19 year-olds employed in education and
In terms of absolute numbers, teenage em-
other professional services rose from 9.3 to 12.5
ployment in agriculture fell from about 750,000
percent, and the proportion in public adminis-
in 1948 to 400,000 in 1968. Despite this drop,
tration also increase (1.8 to 2.8 percent). Over
teenagers have maintained their share of total
the same 1963-68 period, the proportion in pri-
out the postwar period. In the nonagricultural
vate household employment declined from 10 to
agricultural employment-10 percent through-
7.2 percent. (See table 1.3.)
out the post-war period. In the nonagricultural
In 1968, teenagers made up 7.5 percent of
sector, youth employment fluctuated around the
total nonagricultural employment, but they con-
3 million mark from the late 1940's until 1959.
stituted substantially larger proportions in
In 1959 and 1960 teenage employment in non-
three industries-retail trade (16 percent), en-
agricultural industries began to rise strongly,
tertainment and recreational services (22 per-
reaching 5.4 million in 1968. During the
cent) and private households (20 percent). Em-
1966-68 period teenagers were about 7.5 per-
ployment in private households and small retail
cent of all nonagricultural workers, up from
trade and service establishments is generally
about 5.5 to 6.0 percent during the 1950's and
not covered by the Federal minimum wage.
early 1960's.
Hence, all of the teenagers working as domes-
Data on the distribution of 16-19 year-old
tics and babysitters, and many of them em-
teenagers among nonagricultural industries are
ployed as camp counselors, waiters, waitresses,
not available except for recent years. (Materi-
and sales clerks are exempt from minimum
als for the 14-19 year-old group are available
wage provisions. On the other hand, there are
Table 1.3. Employed 16-19 year olds by nonagricultural industries, annual average, 1963 and 1968
1968
1963
Industrial
Industrial
distribu-
distribu-
Industry
tion of
Percent of total
tion of
Percent of total
employed
employed in industry
employed
employed in industry
teens
teens
Total
Male
Female
Total
Male
Female
Total
100.0
7.5
4.0
3.4
100.0
6.0
3.2
2.8
Mining
0.2
2.5
2.3
0.4
4.7
3.7
3.5
0.2
Construction
4.3
5.1
4.8
.3
Manufacturing
18.5
4.8
3.2
1.6
18.8
4.0
2.6
1.4
Durables
9.3
4.1
2.9
1.2
8.5
3.1
2.1
1.0
Nondurables
9.2
5.8
3.6
2.2
10.3
5.1
3.2
1.9
Transportation
4.1
4.3
2.3
2.1
4.0
3.3
1.7
1.6
Railroads
.2
1.8
1.5
.3
.2
.9
.7
.2
Other transportation
1.4
3.5
2.7
.8
1.5
3.0
2.2
.7
Other utilities
2.4
6.1
2.1
4.0
2.3
4.7
1.7
3.0
Trade
36.4
13.9
8.5
5.4
35.5
10.5
6.5
4.0
Wholesale
2.2
4.7
3.3
1.4
2.5
3.9
2.7
1.2
Retail
34.2
15.9
9.6
6.2
33.0
12.0
7.3
4.6
Finance
4.4
6.6
1.3
5.2
5.6
6.8
1.3
5.5
Service
22.0
7.0
3.1
3.9
19.6
5.4
2.5
2.9
Business and repairs
2.7
6.5
4.7
1.8
3.1
6.1
4.3
1.7
Personal. except private households
3.8
8.3
3.0
5.2
4.1
6.3
2.4
3.9
Entertainment
2.8
22.2
15.2
7.0
2.8
18.7
13.3
5.2
Medical, except hospitals
1.6
5.9
1.0
5.0
(1)
(1)
(1)
Hospitals
3.3
7.0
2.1
5.0
(1)
(1)
(1)
(1)
Welfare and religion
.7
5.3
2.2
3.0
(1)
(1)
(1)
(i)
Education
5.6
5.5
2.2
3.3
3.6
3.6
1.5
2.1
Other professional
1.3
5.3
2.5
2.9
15.7
14.5
1 1.1
13.3
Forest and fisheries
.1
6.6
5.5
1.1
.3
9.3
8.5
.8
Private household
7.2
19.8
3.5
16.3
10.0
16.5
3.3
13.2
Public administration
2.8
3.5
1.5
2.0
1.8
1.9
.6
1.3
1 Not available separately; included under "other professional."
9
few teenagers (less than 5 percent of total em-
tions-clerical workers (1.3 million), opera-
ployment) in mining, construction, durable
tives, service workers except private household
goods manufacturing, and transportation,
workers (together 1.0 million each), and non-
where minimum wage coverage is almost uni-
farm laborers (800,000). In 1968, these occupa-
versal.
tions included 72 percent of total teenage em-
Some perspective on the changes that have
ployment, up from 67 percent in 1963. (See table
occurred in the industrial distribution of em-
A25.) Between 1963 and 1968, the proportion of
ployment can be gained from the decennial cen-
teenagers in two low-skilled occupations, farm
sus, though here we include the 14-19 teenage
laborers and private household workers, fell
group. After standardizing for changes in the
from 17 to 12 percent. There are sharp differ-
size of the population groups over time, the
ences in the teenage occupational distribution
movement of teenagers out of agriculture
by sex. Approximately 2.1 million, or 84 per-
is, again, striking. Between 1940 and 1960, the
cent, of the girls employed in 1968 worked in
net employment shift out of agriculture
clerical, sales, or service jobs. On the other
among 14-17 year-old boys was about 44 per-
hand, 2.6 million, or 80 percent, of the employed
cent compared with 25 percent for 18-19 year-
16-19 year-old boys were in blue-collar, miscel-
olds and only 8 percent for all men.⁷
laneous service, or farm laboring jobs.
Among young girls, the shift out of agricul-
Many teenagers work in the lowest skill occu-
ture was smaller (19 percent for those 14-17
pations. In 1968, when 16-19 year-olds made up
and 4 percent for those 18-19), but the shift out
7.6 percent of total employment, they were
of private household employment was substan-
roughly 20 percent of all private household
tial (about 18 percent during the two decades
workers, farm laborers, and nonfarm laborers.
compared with 10 percent for all women). Al-
On the other hand, few teenagers are among the
most all of the movement out of household em-
skilled craftsmen (2.5 percent) and profes-
ployment occurred between 1940 and 1950 as
sional and technical workers (1.7 percent). Not
the economy moved from the last years of the
surprisingly, youth employment in the manage-
depression through World War II and the im-
rial occupations (both farm and nonfarm) is
mediate postwar periods of expanded job op-
almost nonexistent.
portunities.
Persons under age 20 constituted about 11
Among males, retail trade was particularly
percent of the total number of persons on active
affected by the employment shifts. Between
military duty last year, the lowest percentage in
1940 and 1960, the net shift into retail trade
the period since World War II. (See table 1.4.)
was 20 percent for 14-17 year olds and 10 per-
While the number of young people in active mil-
cent for those 18-19; for all males, there was a
itary duty has been higher during war periods,
slight (0.2) shift out of retail trade. Services
the proportion of military personnel under age
and manufacturing also absorbed a dispropor-
20 has generally been lower during war.
tionate number of young males.
The proportion of 18 to 19 year-old men in
A large number of 14-17 year-old teenage
the Armed Forces has declined since the 1950's.
girls were also absorbed into retail trade (a net
During the early 1950's, when persons born in
employment shift of 23 percent between 1940
the depression were in the 18 to 19 group, about
and 1960), and also an appreciable number
23 percent of the males were in the Armed
shifted into services, especially professional and
Forces, compared with 13 percent the last 5
related services (7 percent). Among the older
years as the relatively large number of persons
teenage girls, the important sectors of expand-
born during the 1940's came of age.⁸
ing employment opportunity were finance, in-
surance, real estate (9.3 percent net shift) and
Military service
services (6.6 percent).
Since June 1948, the military draft has been
EMPLOYMENT BY OCCUPATION. Teenage employ-
in continuous existence in the United States.9
ment is concentrated primarily in four occupa-
During the late 1940's, military personnel on
10
Table 1.4. Military personnel on active duty, inductees,
1964, but in the last 3 years has averaged
and First Enlistments, 1947-68
slightly more than 19 years of age. (See table
(In thousands]
A26.)
According to available evidence, military
Military
Military
Military
person-
person-
service has not posed any greater burden upon
18-19
Military
Military
First
person-
nel
nel
year old
person-
induc-
enlist-
nel
under
under
the young today than was true during the Ko-
Year
male
nel on
tees in
ments
under
age 20 as
age 20 as
popula-
active
year
in year
age 20 on
percent
percent
rean war. In fact, the burden is smaller relative
tion as
duty as
ending
ending
active
of all
of male
of July 1
of July 1
June 30
June 30
duty as
military
popula-
to the size of their population. The uncertainty
of July 1
person-
tion
nel
18-19
of when or whether young men would be
drafted has frequenlty been cited, however, as a
1947
12,277
1,561
(:)
(2)
536
34.3
23.5
1948
12,254
1,462
(2)
(:)
355
24.3
15.7
reason for employment problems in the civilian
1949
2,268
1,610
(:)
(2)
417
25,9
18.4
1950
2,214
1,481
(:)
(2)
266
18.0
12.0
labor market.
1951
2,125
3,279
587
630
464
14.2
21.8
1952
2,071
3,661
379
510
490
13.4
23.7
A supplement to the Current Population Sur-
1953
2,111
3,590
564
343
464
12.9
22.0
1954
2,148
3,331
265
329
455
13.7
21.1
1955
vey in October and November 1964 provides
2,136
2,964
215
440
545
18.4
25.5
1956
2,193
2,835
137
371
575
20.3
26.2
some information on this problem. 10 The sur-
1957
2,264
2,823
180
303
590
20.9
26.1
1958
2,296
2,656
127
271
435
16.4
18.9
1959
vey covered civilian males, 16- to 34-years old.
2,376
2,553
111
309
407
15.9
17.1
1960
2,530
2,531
90
324
427
16.9
16.9
About 15 percent of those who had not entered
1961
2,807
2,549
60
360
423
16.6
15.1
1962
2,889
2,860
158
385
453
15.8
15.7
1963
the military and were not attending school full
2,815
2,749
74
328
379
13.8
13.5
1964
2,805
2,748
151
345
355
12.9
12.7
1965
time claimed that they had been told by an em-
3,305
2,698
103
318
374
13.9
11.3
1966
3,696
3,140
340
548
493
15.7
13.3
1967
3,592
ployer that they could not be hired because they
3,449
299
483
668
19.4
18.6
1968
3,584
3,593
340
513
403
11.2
11.2
might be drafted.
1 Excludes Alaska and Hawaii.
Males in the 19-21 year-age group reported a
2 Not available.
negative employer response more frequently
Source: U.S. Department of Commerce, Bureau of the Census. Current Population
Report, Series P-25, U.S. Department of Defense, Office of the Secretary. Annual
than others, though among males classified 1-A,
Report, Selected Manpower Statistics, Bureau of the Census, Statistical Abstract.
the proportion reporting a negative experience
continued to increase through the 22-25 year-
active duty averaged about 1.5 million; the
old group. (The latter had, of course, a longer
number rose to about 3.5 million during the Ko-
exposure to the labor market and, hence, a
rean war. From the mid-1950's to the mid-
greater possibility of a negative experience.)
1960's, slightly more than 2.5 million were on
Those who had not completed high school re-
active duty; the number again approached 3.5
ported a negative experience less frequently (8
million in the last 3 years as a consequence of
percent) and those who had some college train-
the Viet Nam war.
ing but had not graduated reported a negative
Inductions into the military service reached a
experience most often (25 percent). This pat-
peak during the Korean war-587,000 were
tern held true when standardized for age as
drafted in 1951, then gradually dropped to a
well as for all age groups combined.
low of 60,000 in 1961, and rose again in the last
The overall proportion of veterans reporting
3 years to an average of about 325,000 induc-
a similar experience before entering the service
tees. Enlistments into the armed forces have
was about the same, though veterans who were
roughly paralleled draft calls.
college graduates and who entered the service
Since the mid-1950's, the age of persons
in their twenties reported a negative experience
drafted has been on the average in the low 20's.
more frequently than their counterparts who
According to U.S. Department of Defense data,
had not entered the military.
the average age of inductees was slightly more
A substantial minority (about 30 percent) of
than 22 from 1956 through 1966, but in the last
the group covered by the survey expressed the
few years, average age has been closer to 20.
belief that uncertainty over whether they would
(See table A26.) Persons enlisting in the Armed
be drafted had caused them difficulties. The
Forces for the first time have generally been
question asked however, did not specify employ-
younger than inductees. Their average age had
ment problems as distinct from school or per-
been about 18 and one-half years from 1956 to
sonal problems.
11
In general, the survey only indicates that
Table 1.5. Minimum wage and maximum hours levels
about 15 percent of the group had been refused
under the Federal Fair Labor Standards Act
employment due to the possibility of the draft,
Minimum wage
Maximum hours
and that the problem was more common among
Effective date
Enactment date
the better educated and among the most "draft-
covered
newly
covered
newly
covered
covered
able"-those classified 1-A and 19 years of age
or over.
October 24. 1938
$0.25
44
1 June 1938
October 24, 1939
.30
42
A 1964 survey of 190 local public employment
October 24, 1940
40
October 24, 1945
.40
offices providing special placement services for
January 25, 1950
.75
October 1949
high school graduates and dropouts indicated
March 1, 1956
1.00
August 1955
that 26 percent of the offices contacted reported
September 3. 1961
1.15
$1.00
May 1961
no employer discrimination on the basis of mili-
September 3. 1963
1.25
44
September 3, 1964
1.15
42
tary status and 61 percent reported that less
September 3. 1965
1.25,
40
than 25 percent of the employers in the area
February 1. 1967
1.40
1.00
2 44
September 1966
February 1. 1968
1.60
1.15
2 42
discriminated. Twenty-seven percent of the
February 1, 1969
1.30
2 40
February 1. 1970
21.45
offices reported that the draft had no significant
February 1, 1971
21.60
effects on the ability of young men to find work
1 An amendment enacted June 26. 1940. authorized special industry committees
only 12 percent reported a great effect. Similar
to recommend rates above the then 30-cent legal minimum, but not above 40 cents,
permitting those industries to reach the 40-cent minimum rate before October 24,
results were reported in a survey of offices per-
1945, when that rate would become effective, generally. for all covered employment.
The industry committees were predominantly in the apparel and textiles industries.
forming
2 Not applicable to newly covered farm workers.
regular
Employment
Service
functions.11
Initially, coverage of the law was re-
Whether or not the results of these surveys
stricted. Government, agriculture, and retail
conducted in 1964 would hold true in the recent
trade were virtually excluded, as well as most of
years of higher draft calls and greater involve-
the service industry and more than half of con-
ment in Viet Nam is uncertain.
struction. The law also contained many exemp-
tions for workers based on the industries or oc-
cupations in which they were employed. In ad-
The Fair Labor Standards Act
dition, it excluded establishments not engaged
in interstate commerce or in the production of
HISTORY. The Fair Labor Standards Act was
goods for commerce or activities necessary for
signed July 25, 1938, and became effective on
such operations. In all, about half of the nonsu-
October 24 of that year. The law provided for
pervisory workers in the private Sector were
an initial minimum wage of 25 cents, required
covered by the law. (See table 1.5.)
payment of time and one-half for hours in ex-
Though the law was, practically nullified by
cess of 44 a week, and set 16 as the minimum
inflation and rapidly rising money wages dur-
age for general employment in establishments
ing and immediately after World War II, the
producing goods for shipment or delivery in in-
basic minimum under the law was not changed
terstate commerce. If each occupation was de-
until 1950 when the minimum was raised to 75
clared hazardous by the Secretary of Labor, the
cents. Although coverage provisions were
amended to incorporate clarifications of the lan-
minimum age for employment was 18. Employ-
guage and to include only those workers "closely
ment of 14- and 15-year olds was permitted out-
related and directly essential" rather than those
side school hours in a few occupations.
"necessary" to the production of goods for in-
The original act provided for increases in the
terstate commerce, the coverage changes were
basic minimum to 30 cents in 1939 and to 40
negligible. In 1956, the minimum wage became
cents in 1945, and required payment of pre-
$1 an hour, but coverage was not changed.
mium overtime rates after 42 hours in 1939 and
Prior to the 1960's, increases in the number
40 hours in 1940. Special industry committees,
of persons covered by the law was attributable
could recommend rates above the 30-cent limit,
to employment growth or shifts of employment
but not more than 40 cents, prior to 1945.
from sectors not covered by the law to others,
FORD
12
such as the shift out of agriculture; changes in
cent of average hourly earnings when the law
the law itself were not important.
first became effective in October 1938. (See
In 1961, Congress substantially expanded
table A28.) The following year the minimum
coverage by including all employees of an enter-
wage rose to about 48 percent of average hourly
prise that had some employees engaged in inter-
earnings. By the time of the scheduled increase
state. commerce or the production of goods for
in the minimum to 40 cents in 1945, increases in
interstate commerce. Dollar volume tests were
average hourly wages had made the new mini-
established as a basis for enterprise coverage.
mum relatively no more meaningful than the
As a consequence, the number of persons cov-
original 25 cents. The changes in the basic mini-
ered in retail trade, construction, and public
mum after the 1940's have kept the minimum at
transit increased substantially. The proportion
about 50 to 55 percent of average hourly earn-
of nonsupervisory employees covered by the law
ings in manufacturing in the month when the
had been increased to about 60 percent from 50
change was effective.
percent.
The 1961 amendments also increased the
Table 1.6. Proportion of earnings covered by the
basic minimum to $1.15 in 1961 and to $1.25 in
Federal minimum wage, 1947-68¹
1963. Newly covered workers were granted a
minimum wage of $1, which was raised in two
Basic minimum wage
Minimum wages as a
Minimum wages as a
as a percent of 2
percent of average
percent of average
steps to $1.25 by September 1965.
hourly earnings
hourly earnings
weighted by industry
weighted by industry
Year
Average
Total
Even more extensive than the 1961 amend-
total employment
teenage employment
hourly
compen-
and proportion
and proportion of
earnings
sation per
covered 3
ments, the 1966 amendments to the law brought
total employment
private
man-hour
private nonfarm
covered 4
nonfarm
private
a half-million workers on large farms under
private nonfarm
nonfarm
coverage of the law. Also hospitals and schools,
1947
35.4
31.3
20.3
(5)
whether public or private; nursing homes;
1948
32.7
28.7
19.1
(5)
1949
31.4
27.9
18.0
(5)
laundries; and many hotels, motels, and res-
1950
56.2
49.6
32.3
(5)
1951
51.7
45.5
30.1
(5)
taurants were brought under coverage. Fur-
1952
49.3
43.1
28.4
(5)
1953
46.6
40.8
26.9
(5)
ther, the enterprise sales test was dropped from
1954
45.5
39.5
25.8
18.2
1955
43.4
38.1
24.8
17.6
the $1 million under the 1961 amendments to
1956
53.2
46.0
30.7
21.0
1957
52.9
43.4
29.8
20.2
$500,000 in 1967 and to $250,000 in 1969. As a
1958
51.3
41.9
28.3
18.4
1959
49.5
40.1
27.3
18.1
consequence, nonsupervisory workers subject to
1960
47.8
38.5
26.2
17.8
1961 6
49.1
40.9
28.3
21.0
the law increased from approximately 60 per-
1962
51.8
43.1
32.8
27.7
1963
51.9
42.9
32.5
27.1
cent in the private sector under the 1961
1964
53.0
43.3
33.4
27.7
1965
51.0
41.8
32.5
27.1
amendments to over 75 percent. 11
1966
48.8
39.5
31.5
26.7
1967 6
53.8
41.5
39.2
36.9
In addition to the extensions of coverage, the
1968 6
55.6
44.0
42.6
40.1
1966 amendments raised the minimum wage to
I In years when the minimum wage changed. the rate used in the calculations was
$1.40 in 1967 and $1.60 in 1968 for workers
weighted by the number of months it was in effect. For example in 1968, $1.40 was in
effect I month and $1.60 for 11 months, a weighted average rate of $1.58.
previously covered and set a minimum of $1 for
2 The basic minimum refers to the single rate provided under law prior to 1961 and,
since 1961. to the rate applicable to previously covered workers.
newly covered workers effective February 1,
3 Calculated, as follows:
1967, to be raised by 15-cent intervals each year
until $1.60 is reached in 1971. (The minimum
Σ
[(
MP
MNi
CBᵢ
+
CNi
AHEᵢ
wage for agricultural workers stopped at the
where:
$1.30 reached in 1969.)
E=payroll employment.
AHE=average hourly earnings.
MP=basic minimum wage.
MINIMUM WAGES AND EARNINGS OF WORKERS.
MN=minimum wage for newly covered workers.
proportion of nonsupervisory employees covered by the basic minimum.
While the basic minimum wage has increased
CN=proportion of nonsupervisory employees covered by the rate applicable to
newly covered workers.
i=major industry division (wholesale and retail trade treated as separate
more than six fold since 1938, during the same
divisions).
1-total private nonfarm economy.
period, a substantial increase has taken place in
4 Calculations are the same as in footnote 3 except that employment data refer to
the 14-19 age group only. Employment data are not strictly comparable to that for all
money wage levels. In manufacturing, where
workers since it comes from household rather than payroll records and because govern-
ment employment not classified as public administration is included in the other divi-
monthly records on earnings extending far back
sions: private households were excluded.
Not available.
in time, the minimum wage was about 41 per-
. Denotes years when basic minimum wage was changed. There were also changes
for newly covered workers in 1964 and 1965.
13
As in manufacturing, minimum wages have,
by the proportion of workers covered by the
in the year the change was effective, averaged
applicable minimum and the employment in the
slightly over 50 percent of average hourly earn-
industry division, we find a substantial rise in
ings in the private nonfarm sector as a whole in
the effectiveness of minimum wage laws.
the postwar period. The constant rise in money
The method of calculation can be illustrated
wages in the intervening years, however, con-
with the following hypothetical example. Sup-
stituted a partial repeal of the effective mini-
pose there are only two industry divisions in the
mum wage level. The 75-cent minimum effective
country and the following facts are known:
in 1950, for example, was 56 percent of average
Proportion of nonsupervisory work
hourly earnings. The rapid rise in wages during
force in industry covered by-
Proportion of
and after the Korean war brought the percen-
total employ-
Average
$1.30
ment in all
earnings
$1.60
Mini-
No
tage down to 43 in 1955. (See table 1.6.)
Indus-
industries
hourly
minimum
mum
minimum
Total
try
(In percent)
(In percent)
The comparison between the basic minimum
A
40
$2.50
60
20
20
100
wage and average hourly earnings both over-
B
60
3.50
90
10
100
Total 100
states and understates what has happened to
the legal minimum compared with actual earn-
The minimum wage as a percent of earnings
ings. The comparison is overstated in that it
weighted by coverage and industry employment
does not take into consideration the increasing
would be:
importance of supplements to compensation,
such as pensions, health insurance plans, and SO
1.60
.40
.60
.20
.20
forth. Studies indicate that low-wage firms and
2.50
2.50
industries pay out less in the form of fringe
benefits than do high-wage firms and industries.
.60 3.50 1.60 .90 3.50 1.30 .10
Only legally required payments such as social
security and unemployment compensation are
= .464 or 46.4 percent.
common in low-wage sectors.
Measured this way, minimum wages effectively
Since workers paid at or near the legal mini-
rose from about 32 percent of earnings in 1950
mum rate are less likely to receive fringe bene-
to 43 in 1968 after taking coverage and all ap-
fits, comparisons are more properly made to
plicable minimums into account-a 32-percent
total compensation (including fringes) per
increase in the proportion compared with a 1-
man-hour rather than earnings alone. In the
percent decline when coverage was ignored and
private nonfarm economy, the minimum wage
only the basic minimum wage considered.
was 44 percent of total compensation per man-
hours in 1968 compared with 49.6 percent in
If total compensation were considered, as
1950 when the 75-cent minimum was made
well as coverage, the estimated effective in-
effective, a decline of 11.3 percent in the pro-
crease in the proportion between 1950 and 1968
portion. When the comparison was restricted to
would have been about 18 percent. 12
earnings alone, the comparable figures indi-
cated a more modest decline of 1.1 percent.
MINIMUM WAGES AND DISTRIBUTION OF TEENAGE
The comparisons between minimum wages
EMPLOYMENT. A disproportionately large num-
and average hourly earnings or total compensa-
ber of teenagers are employed in the trades and
tion per man-hour understates minimum wage
services which have been especially affected by
developments in that they take no note of the
the 1961 and 1966 amendments to the law. We
significant expansions of coverage that occurred
have no exact information on the number of
in 1961 and 1967. Nor do previous comparisons
teenagers who work in establishments covered
note that, since 1961, two minimum wage rates
by the FLSA or on the relationship between
have been applicable to different groups of
their wage rates and the level of the minimum
workers.
wage.
When applicable minimum wages are com-
An approximation of the effects of expansion
puted as a percent of average hourly earnings
in coverage can be made, however, if we com-
in each major industry division and weighted
pute, as before, minimum wages as a percen-
14
tage of average hourly earnings in each major
performed under a U.S. Government contract in
division and weight by the proportion of work-
excess of $10,000. The Sugar Act deals with the
ers covered by the applicable minimums, but
cultivation or harvesting of sugarbeets or su-
use the proportion of teenage employment in
garcane. To qualify for maximum Federal bene-
each division rather than the proportion of total
fits under this law, producers may not employ
employment.
children under 14, or permit those of 14 or 15 to
The significant comparison is between the
work more than 8 hours a day.
data using teenage and that using total employ-
On reaching his 16th birthday, a youth is re-
ment. Averaging the years 1954 to 1960, teen-
leased from all Federal restraints on his em-
age employment weights give us an estimate of
ployment except for an 18-year employment age
minimum wages as a percentage of earnings of
in nonagricultural occupations declared particu-
approximately 19 percent compared with about
larly hazardous by the Secretary of Labor
28 percent when total employment is used.
under FLSA, and except for any indirect effect
While the teenage employment weights yield a
of the age certification program. Although there
figure about 68 percent as large for 1954-60, it
is no Federal requirement for proof-of-age cer-
rose to about 82 percent for 1961-66 and 94
tificates or work permits for minors of any age,
percent for 1967-68.
under a cooperative program between the De-
The estimates are not precise: they do not
partment of Labor and the States, as set forth
take into consideration the shift of teenagers
in Child Labor Regulation 1, State certificates
out of agriculture and they do not account for
are accepted as proof of age under FLSA, and
the proportion of teenagers employed in small
employers are urged to obtain an age certificate
establishments not covered by FLSA. The only
for every minor claiming to be under 18 before
important point, however, is that percent
employing him in any occupation, and for
changes in coverage under the law are apt to
every minor claiming to be 18 or 19 before em-
have had more influence on teenagers than on
ploying him in a nonagricultural occupation de-
older workers.
clared hazardous.
The Secretary has issued 17 hazardous occu-
Federal law
pations orders establishing an 18-year mini-
mum for employment in occupations involving:
The basic Federal law governing the employ-
Manufacture or storage of explosives
ment of children and youth is contained in the
Occupations of motor-vehicle driver and outsider
FLSA and in the orders and regulations issued
helper
under that law.
Coal mining
Minors under the age of 16 are subject to
Logging and sawmilling
Power-driven woodworking machines*
Federal restrictions on occupations and time pe-
Exposure to radioactive substances and to ionizing
riods for work. In general, the FLSA sets a
radiation
basic minimum age of 16 for employment, but
Operation of elevators and other power-driven
permits 14- and 15-year olds to work outside
hoisting apparatus
school hours in certain occupations and under
Power-driven metal forming, punching, and shear-
restricted conditions with respect to maximum
ing machines*
Mining, other than coal
working hours and nightwork as set forth in
Slaughtering, meat-packing or processing, or rend-
Child Labor Regulation 3. In agricultural em-
ering*
ployment, minors under 16 may not be em-
Power-driven bakery machines
ployed during school hours or at any time in an
Power-driven paper-products machines*
occupation declared hazardous by the Secretary
Manufacture of brick, tile, and kindred products
Circular saws, band saws, and guillotine shears*
of Labor.
Wrecking, demolition, and shipbreaking
Two other Federal laws govern the employ-
Roofing*
ment of minors under 16. The Walsh-Healey
Excavation*
Public Contracts Act includes a prohibition on
Apprentices and student-learners are exempted
the employment of minors under 16 in work
under specified conditions.
15
FLSA does not preempt State jurisdiction in
Most prevalent are limitations on maximum
the regulation of child and youth employment;
working hours, which are distinctively State in
on the contrary the act specifically preserves
origin for this age group, without Federal
State law, thus permitting dual coverage.
equivalents. Twenty-seven States, Washington,
Whenever both Federal and State law apply to
D.C., and Puerto Rico have hours limits for
the same employment, the higher (more strin-
boys and girls; three, for girls only. In 11 other
gent) standard must be observed, whether Fed-
States girls of 16 and 17 are subject to hours
eral or State.
restrictions by virtue of laws applicable to fem-
ales as such. The most common limitation is an
State law
8-hour day, 48-hour week, and a 6-day week. In
a number of States more restrictive provisions
Every State has a child labor law, its initial
apply to those attending school.
enactment having predated the Federal law by
Similarly without Federal equivalents are the
several decades. Youth employment is also af-
State nightwork restrictions, in effect in 20
fected by State compulsory school attendance
States, Washington, D.C., and Puerto Rico for
laws and by specific provisions in other types of
boys and girls, and in three for girls only. The
State laws, primarily those dealing with alco-
mandatory quitting time is often later for boys
holic beverage control, hours and nightwork
than for girls, or for those not attending school,
regulated by orders issued under minimum
or on nights preceding nonschool days or during
wage programs in a few States, double-award
school vacation. Although the most common
requirements under workmen's compensation,
curfew is 10 p.m., a few laws have earlier cur-
mining, occupational licensing, and restrictions
fews for girls, and several have later ones for
on women's working hours.
boys and girls or for boys only.
Broadly speaking, the child labor laws fall
Employment certificates are required by 20
into a pattern for this age group, although con-
States, Washington, D.C., and Puerto Rico. In
siderable variation exists among State. The
most of these jurisdictions the minor is re-
most common standards relate to employment
quired to obtain a prior promise of employment
certificate (or work permit) requirements; min-
from the employer, and in 12 he must also pre-
imum employment ages during and outside
sent a certificate of physical fitness. Less com-
school hours, as well as in manufacturing, in
plex procedures are in effect in six other States,
nonmanufacturing, and in hazardous or detri-
where only age certificates are mandatory.
mental occupations; maximum daily and weekly
Twenty-four States and Puerto Rico have es-
hours and days per week; and restrictions on
tablished an 18-year entrance age in a consider-
nightwork. Many of the State provisions are
able number of hazardous occupations, as speci-
less restrictive than comparable Federal re-
fied by law and/or regulation. State lists of
quirements. Several States also have special
such occupations are usually less restrictive
provisions regulating employment in agricul-
than the Federal counterparts, but a few are
ture, street trades, messenger work, or public
more restrictive or bar certain employment that
performances.
presents a moral or emotional hazard rather
About one-fourth of the States do not impose
than a physical danger.
any general restraints on employment once the
The workmen's compensation laws of a third
youth has attained age 16. But in the other
of the States provide for the payment of extra
States protective restrictions or requirements
compensation (usually double) to a minor who
of one or more types are in effect. These deal
is injured while illegally employed. Under most
with employment- or age-certificate require-
of these laws, the employer is specifically liable
ments, prohibitions on hazardous work, and
for the additional compensation; it is not insur-
limitations on maximum hours and/or night-
able. While not in itself a restriction on lawful
work. About a third of the States have re-
employment, this type of requirement might af-
straints of all such types.
fect employer practices.
16
There is no Federal law governing compul-
ment, economic need, educational attainment,
sory school attendance; this is a matter regu-
uneducability, discipline, handicap, or other
lated by State law. All States but one have com-
particular conditions.
pulsory school attendance laws. Attendance is
State restraints generally cease when the
usually required between the ages of 7 and 16,
youth reaches his 18th birthday, except for the
but eight States have statewide full-time at-
age provisions in Alcoholic Beverage Control
tendance requirements until age 17 and four
Laws, which usually establish age 21 as the
others until age 18. However, in most of these
minimum in occupations involving the selling or
latter States children of 14, 15, or 16 may be
excused for purposes of employment. Even in
serving of alcoholic beverages or ages 18 to 21
States which require attendance only until the
in places that sell or serve such beverages.
age of 16, many permit children below this age
Hours or other types of age restrictions exist in
to be exempted from further attendance under
only a very few States or affect only individual
a variety of circumstances related to employ-
occupations of a special nature.
FOOTNOTES
1 In this study, the terms "teenager" and "youth"
t = total, and the prime (') represents the later time
are used interchangeably. Unless otherwise stated, both
period.
terms refer to the 16-19 age group.
8 The comparison given in the last column of table
3 See Statistics on Manpower, a supplement to the
1.4 is not strictly proper. Seventeen year-old males can
Manpower Report of the President, U.S. Department
enlist with parents' permission as is true of girls under
of Labor, 1969, P. 33.
age 21. As of March 1969, fewer than 40,000 women
3 Significantly, in October 1968, a majority of both
of all ages were in the Armed Forces.
employed and unemployed teenagers for the first time,
The World War II draft act expired March 31, 1947
were enrolled in school. See table A-29.
4 Data refer to Negro and other races. Negroes con-
and the draft was reinstated June 24, 1948. No persons
stitute over 90 percent of the total in this group.
were drafted, however, from late 1945 to 1948.
5 Poverty neighborhoods include the lowest quartile
10 The results of the study, financed by the Depart-
of census tracts (based on 1960 Census data) in SMSA's
ment of Defense, were included in appendix D of the
of 250,000 inhabitants or more, ranked in terms of
manuscript, Meeting Our Military Manpower Needs,
income, education, skills, housing, and broken families.
U.S. Department of Defense.
See table A-13.
11 See table A-27 for detailed estimates for 1969.
See tables A-14, A-15, and A-16, Data on work ex-
12 Historical data on total compensation per man-hour
perience of the population in 1968 were not available
at the time this report was written.
by industry division is not currently available. An ap-
: See table A-24. Net employment shift between two
proximate calculation can be made from the materials
time periods for any group is:
in table 1.6. For 1968, for example, minimum wages
as a percent of compensation weighted by coverage
E.
E,
where E = employment, i = industry,
,
would be (44.0/55.6) (42.6) = 33.7:
E.
E.
Appendix Tables
Table A-1. Population, labor force, employment, unemployment, and school enrollment
16- to 19-year olds, both sexes, white, annual averages
[In thousands]
Percent change, year to year
Civilian
Civilian
labor
noninstitu-
Civilian
Unem-
School
Year
force
tional
labor
Employed
ployed
enroll-
Civilian
Civilian
School
partici-
population
force
ment I
noninstitu-
labor
Employed
Unem-
enroll-
pation
tional
force
ployed
ment
rate
population
1955
7,293
3,597
3,226
371
(2)
1956
49.3
7,346
3,771
3,387
384
(2)
.7
4.8
1957
4.9
3.5
7,505
(2)
51.3
3,774
3,373
401
(2)
2.2
.1
-.4
4.4
1958
7,844
(2)
50.3
3,759
3,217
542
(2)
4.5
-.4
-4.6
35.2
1959
(2)
47.9
8,432
4,000
3,475
525
5,442
7.5
6.4
8.0
1960
-3.1
8,924
(2)
47.4
4,276
3,701
575
5,694
5.8
6.9
6.5
1961
9.5
4.6
47.9
9,212
4,361
3,692
669
5,777
3,2
2.0
- .2
16.3
1962
1.5
47.3
9,344
4,354
3,774
580
6,172
1.4
-.2
2.2
-13.3
1963
6.8
46.6
9,979
4,558
3,850
708
6,872
6.8
4.7
2.0
22.1
1964
11.3
45.7
10,618
4,784
4,076
708
7,415
6.4
5.0
5.9
1965
7.9
45.1
11,320
5,265
4,562
703
7,921
6.6
10.1
11.9
-.7
1966
6.8
46.5
11,863
5,828
5,176
651
8,177
4.8
10.7
13.5
-7.4
1967
3.2
49.1
11,683
5,748
5,113
635
8,107
-1.5
-1.4
-1.2
-2.5
1968
-.9
is
49.2
11,841
5,839
5,195
644
8,599
1.4
1.6
1.6
1.4
6.1
49.3
1 Total school population in month of October.
3 Not available.
17
18
Table A-2. Population, labor force, employment, unemployment, and school enrollment
16- to 19-year olds, both sexes, Negroes and other races, annual averages
[In thousands]
Percent change, year to year
Civilian
Civilian
labor
moninstitu-
Civilian
Unem-
School
force
Year
tional
labor
Employed
ployed
enroll-
Civilian
Civilian
School
partici-
population
force
ment 1
noninstitu-
labor
Employed
Unem-
enroll-
pation
tional
force
ployed
ment
rate
population
1955
1,072
495
417
78
(2)
46.2
1956
1,087
527
431
96
(:)
1.4
6.5
3.4
23.1
(:)
48.5
1957
1,108
503
407
96
(2)
1.9
-4.6
-5.6
(:)
45.4
1958
1,143
504
366
138
(2)
3.2
.2
-10.1
43.8
(2)
44.1
1959
1,188
491
363
128
676
3.9
-2.6
-.8
-7.2
(2)
41.3
1960
1,263
566
428
138
722
6.3
15.3
17.9
7.8
6.8
44.8
1961
1,301
572
414
158
717
3.0
1.1
-3.3
14.5
-.7
44.0
1962
1,309
561
420
141
714
.6
-1.9
1.4
-10.8
-.4
42.9
1963
1,392
579
403
176
893
6.3
3.2
-4.C
24.8
25.1
41.6
1964
1,496
606
441
165
963
7.5
4.7
9.4
-6.3
7.8
40.5
1965
1,610
644
475
169
1,062
7.6
6.3
7.7
2.4
10.3
40.0
1966
1,731
729
544
185
1,126
7.5
13.2
14.5
9.5
6.0
42.1
1967
1,801
771
569
204
1,182
4.0
5.8
4.6
10.3
5.0
42.8
1968
1,858
779
585
195
1,271
3.2
1.0
2.8
-4.4
7.5
41.9
1 Total school population in month of October.
2 Not available.
Table A-3. School enrollment as percent of population
Table A-4. School enrollment as percent of population
all persons 16- to 24-years old, by age and sex
white person 16- to 24-years old, by age and sex,
October of 1947, 1957, and 1965-68
October of 1947, 1957, 1965-68
16 to 19 years
20 to 24 years
16 to 19 years
20 to 24 years
Year and sex
Year and sex
Total
16 and
18 and
Total
20 and
22 to
Total
16 and
18 and
Total
20 and
22 to
17 years
19 years
21 years
24 years
17 years
19 years
21 years
24 years
ALL PERSONS, BOTH
WHITE PERSONS,
SEXES
BOTH SEXES
1968
71.2
90.2
50.3
21.4
31.2
13.8
1968
71.8
90.8
50.9
22.4
1967
32.8
14.5
69.3
88.8
47.6
22.0
33.3
13.6
1967
69.9
89.4
48.3
22.9
34.8
14.1
1966
68.2
88.5
47.2
19.9
29.9
13.2
1966
68.8
89.0
48.2
21.3
1965
32.2
14.0
67.8
87.4
46.3
19.0
27.6
13.2
1965
68.3
87.8
47.1
1957
20.2
29.4
14.1
59.2
80.5
34.9
14.0
(1)
(1)
1957
(1)
(1)
34.6
14.7
1947
(1)
(1)
46.5
67.6
24.3
10.2
(1)
(1)
1947
(1)
(1)
24.8
10.5
(1)
(1)
MALE
MALE
1968
77.3
91.7
60.4
30.5
45.0
20.4
1968
78.0
92.1
61.4
32.5
1967
47.8
21.9
75.3
90.9
56.3
30.6
44.3
21.0
1967
76.0
91.4
57.1
1966
32.2
46.9
22.0
74.6
89.9
57.8
29.2
41.4
21.3
1966
75.3
90.3
59.0
1965
31.6
44.9
23.0
72.9
88.0
55.6
27.6
37.6
21.1
1965
73.6
88.6
56.6
29.8
1957
39.9
23.3
65.5
82.8
43.3
21.3
(1)
(1)
1957
1947
(1)
(1)
44.0
22.9
(1)
(1)
50.8
67.6
31.4
17.0
(1)
(i)
1947
(1)
(1)
32.6
17.4
(1)
(1)
FEMALE
FEMALE
1968
65.4
88.7
41.2
14.3
21.5
8.3
1968
65.8
1967
89.4
41.3
14.6
22.3
8.2
63.6
86.7
40.3
15.1
24.9
7.4
1967
64.2
87.4
1966
40.9
15.4
25.6
7.4
62.1
87.1
37.7
12.4
20.9
6.6
1966
62.6
87.6
38.6
1965
12.9
22.3
6.6
62.8
86.9
37.7
11.8
19.5
6.5
1965
63.0
87.0
38.3
1957
12.2
20.9
6.3
53.6
78.1
28.1
8.2
(1)
(1)
1957
1947
(1)
(1)
27.0
8.3
(1)
(1)
42.5
67.5
18.5
3.9
(1)
(1)
1947
(1)
(1)
18.3
4.1
(1)
(1)
1 Not available.
1 Not available.
19
Table A-5. School enrollment as percent of population,
Table A-7. Unemployment rates, 16 to 17 year olds,
Negroes and other races 16- to 24-years old, by age and
annual averages, by color and sex
sex, October of 1947, 1957 and 1965-68
White
All other
Year
Total
Male
Female
16 to 19 years
20 to 24 years
Total
Male
Female
Total
Male
Female
Year and sex
Total
16 and
18 and
Total
20 and
22 to
17 years
19 years
21 years
24 years
1948
10.0
10.1
9.8
10.0
10.2
9.6
10.2
9.4
11.8
1949
14.0
13.7
14.4
13.5
13.4
13.6
17.3
15.8
20.3
1950
13.6
13.3
14.2
13.6
13.4
13.8
14.1
12.1
17.6
NEGROES AND OTHER
1951
9.6
9.4
10.0
9.6
9.5
9.6
10.3
8.7
13.0
RACES, BOTH SEXES
1952
10.0
10.5
9.1
10.3
10.9
9.3
7.4
8.0
6.3
1953
8.7
8.8
8.5
8.7
8.9
8.3
8.8
8.3
10.3
1968
67.7
86.8
46.8
14.0
20.2
9.2
1954
13.5
13.9
12.7
13.2
14.0
12.0
15.4
13.4
19.1
1967
65.2
85.1
42.8
15.3
22.4
10.0
1955
12.3
12.5
12.0
12.0
12.2
11.6
15.0
14.8
15.4
1966
64.0
85.4
40.0
10.2
14.2
7.5
1956
12.3
11.7
13.2
11.5
11.2
12.1
18.0
15.7
22.0
1965
64.3
84.6
40.1
10.2
15.5
6.3
1957
12.5
12.4
12.6
11.9
11.9
11.9
17.0
16.3
18.3
1957
(1)
(1)
36.7
8.8
(1)
(1)
1958
16.4
16.3
16.6
15.2
14.9
15.6
26.5
27.1
25.4
1947
(1)
(1)
20.2
6.9
(1)
(1)
1959
15.3
15.8
14.4
14.4
15.0
13.3
23.0
22.3
25.8
1960
15.5
15.5
15.4
14.6
14.6
14.5
23.7
22.7
25.7
MALE
1961
18.3
18.3
18.3
16.7
16.5
17.0
31.0
31.0
31.1
1968
72.5
88.9
53.7
16.3
25.6
9.4
1962
16.2
15.9
16.8
15.3
15.1
15.6
23.9
21.9
27.8
1967
71.0
88.0
50.6
18.7
26.4
13.1
1963
19.3
18.8
20.3
17.9
17.8
18.1
31.8
27.0
40.1
1966
69.7
87.2
49.1
12.3
17.4
8.6
1964
17.8
17.1
18.8
16.5
16.1
17.1
29.5
25.9
36.5
1965
67.4
83.3
47.5
11.7
21.6
4.5
1965
16.5
16.1
17.2
14.8
14.7
15.0
31.1
27.1
37.8
1957
(1)
(1)
38.5
10.3
(1)
8
1966
14.8
13.7
16.6
13.3
12.5
14.5
26.9
22.5
34.8
1947
(1)
(1)
20.7
12.3
(1)
1967
14.7
14.5
14.8
12.8
12.7
12.9
29.9
28.9
32.0
1968
14.7
13.9
15.9
12.9
12.3
13.9
29.5
26.6
33.7
FEMALE
1968
63.2
84.7
40.6
12.3
16.3
9.1
1967
59.9
82.3
36.0
12.6
19.3
7.5
1966
58.8
83.7
31.9
8.6
11.6
6.5
1965
61.5
85.9
33.5
8.9
10.4
7.8
1957
(1)
(1)
35.1
7.6
(1)
33
(1)
1947
(1)
(1)
19.9
2.5
(1)
(1)
1 Not available.
Table A-6. Unemployment rates, 16- to 19-year olds,
Table A-8. Unemployment rates, 18 to 19 year-olds,
annual averages, by color and sex
annual averages, by color and sex
White
All other
White
All other
Total
Male
Female
Year
Total
Male
Female
Year
16-19
16-19
16-19
Total
Male
Female
Total
Male
Female
Total
Male
Female
Total
Male
Female
16-19
16-19
16-19
16-19
16-19
16-19
1948
8.6
9.6
7.4
8.2
9.5
6.7
12.0
10.5
14.6
1948
9.2
9.8
8.3
8.9
9.8
7.7
11.2
10.0
13.4
1949
13.0
14.6
11.2
12.6
14.2
10.7
16.7
17.1
15.9
1949
13.4
14.3
12.3
13.0
13.9
11.7
16.9
16.6
17.6
1950
11.2
12.3
9.8
10.7
11.7
9.4
16.3
17.7
14.1
1950
12.2
12.7
11.4
11.8
12.4
10.9
15.3
15.1
15.6
1951
7.1
7.0
7.2
6.6
6.7
6.5
11.6
9.6
15.1
1951
8.2
8.1
8.3
7.8
8.0
7.6
11.0
9.2
14.1
1952
7.3
7.4
7.3
6.6
7.0
6.2
12.9
10.0
16.8
1952
8.5
8.9
8.0
8.3
8.8
7.5
10.5
9.1
12.8
1953
6.8
7.2
6.4
6.6
7.1
6.0
8.8
8.1
9.9
1953
7.6
7.9
7.2
7.5
7.9
6.9
8.8
8.2
10.1
1954
12.0
13.2
10.5
11.3
13.0
9.4
17.2
14.7
21.6
1954
12.6
13.5
11.4
12.1
13.4
10.4
16.6
14.4
20.6
1955
10.0
10.8
9.1
9.2
10.4
7.7
16.3
12.9
21.4
1955
11.0
11.6
10.2
10.4
11.3
9.1
15.6
13.4
19.2
1956
10.2
10.4
9.9
9.0
9.7
8.3
18.4
14.9
23.4
1956
11.1
11.1
11.2
10.1
10.5
9.7
18.1
15.0
22.8
1957
10.9
12.3
9.4
9.5
11.2
7.9
20.5
20.0
21.3
1957
11.6
12.4
10.6
10.6
11.5
9.5
19.1
18.4
20.2
1958
15.5
17.8
12.9
13.9
16.5
11.0
24.7
26.7
30.0
1958
15.9
17.1
14.3
14.4
15.7
12.7
27.4
26.8
28.4
1959
14.0
14.9
12.9
12.1
13.0
11.1
28.1
27.2
29.9
1959
14.6
15.3
13.5
13.1
14.0
12.0
26.1
25.2
27.7
1960
14.1
15.0
13.0
12.6
13.5
11.5
24.9
25.1
24.5
1960
14.7
15.3
13.9
13.5
14.0
12.7
24.3
24.0
24.8
1961
15.8
16.3
15.1
14.4
15.1
13.6
25.6
23.9
28.2
1961
16.8
17.1
16.3
15.3
15.7
14.8
27.7
26.8
29.2
1962
13.6
13.8
13.5
12.0
12.7
11.3
25.9
21.8
31.2
1962
14.7
14.7
14.6
13.3
13.7
12.8
25.3
22.0
30.2
1963
15.6
15.9
15.2
13.7
14.2
13.2
29.5
27.4
31.9
1963
17.2
17.2
17.2
15.5
15.9
15.1
30.3
27.3
34.7
1964
14.9
14.6
15.1
13.3
13.4
13.2
25.7
23.1
29.2
1964
16.2
15.8
16.6
14.8
14.7
14.9
27.3
24.3
31.6
1965
13.5
12.4
14.8
12.3
11.4
13.4
22.4
20.2
27.8
1965
14.8
14.1
15.7
13.4
12.9
14.0
26.5
23.3
31.7
1966
11.3
10.2
12.6
9.7
8.9
10.7
24.3
20.5
29.2
1966
12.8
11.7
14.1
11.2
10.5
12.1
25.4
21.3
31.3
1967
11.6
10.5
12.7
9.8
9.0
10.6
23.9
20.1
28.3
1967
12.8
12.3
13.5
11.0
10.7
11.4
26.2
23.8
29 6
1968
11.2
9.7
12.9
9.6
8.2
11.0
22.4
19.0
26.2
1968
12.7
11.6
14.0
11.0
10.1
12.1
24.9
22.1
28.7
20
Table A-9. Unemployment rates, 20-24 years old,
Table A-11. Ratio of unemployment rates, 20 to 24 years,
annual averages, by color and sex
to rate for 25 years and over, annual averages, by sex
and color
White
All other
Year
Total
Male
Female
White
All other
Total
Male
Female
Total
Male
Female
Year
Total
Male
Female
Total
Male
Female
Total
Male
Female
1948
6.2
6.9
4.8
5.6
6.4
4.2
11.1
11.7
10.2
1949
9.3
10.4
7.3
8.7
9.8
6.7
14.4
15.8
12.5
1950
7.7
8.1
6.9
7.1
7.7
6.1
12.8
12.6
13.0
1948
2.14
2.56
1.41
2.07
2.46
1.31
2.47
2.66
1.85
1951
4.1
3.9
4.4
3.8
3.6
3.9
7.6
6.7
8.8
1949
1.94
2.17
1.49
1.93
2.18
1.46
2.00
2.03
2.02
1952
4.6
4.6
4.5
4.1
4.3
3.8
9.2
7.9
10.7
1950
1.75
1.93
1.44
1.78
2.03
1.39
1.64
1.50
1.86
1953
4.7
5.0
4.3
4.3
4.5
4.1
7.0
8.1
5.5
1951
1.46
1.63
1.13
1.46
1.64
1.03
1.69
1.60
1.76
1954
9.2
10.7
7.3
8.3
9.8
6.4
15.2
16.9
13.2
1952
1.92
2.09
1.50
1.86
2.15
1.36
2.04
1.72
2.49
1955
7.0
7.7
6.1
6.2
7.0
5.1
12.7
12.4
13.0
1953
1.96
2.17
1.59
1.95
2.14
1.64
1.79
1.98
1.57
1956
6.6
6.9
6.3
5.7
6.1
5.1
13.1
12.0
14.8
1954
1.96
2.43
1.38
1.98
2.51
1.31
1.75
1.84
1.69
1957
7.1
7.8
6.0
6.3
7.1
5.1
12.5
12.7
12.2
1955
1.94
2.26
1.49
1.94
2.33
1.38
1.69
1.57
1.88
1958
11.2
12.7
8.9
9.9
11.7
7.4
19.4
19.5
18.9
1956
2.00
2.23
1.62
1.97
2.26
1.46
1.93
1.76
2.14
1959
8.5
8.7
8.1
7.3
7.5
6.7
15.7
16.3
14.9
1957
2.09
2.44
1.54
2.03
2.54
1.42
1.95
1.87
2.18
1960
8.7
8.9
8.3
7.9
8.3
7.2
14.0
13.1
15.3
1958
2.00
2.27
1.56
1.94
2.34
1.40
1.87
1.64
2.28
1961
10.4
10.8
9.8
9.4
10.0
8.4
16.9
15.3
19.5
1959
1.93
2.02
1.69
1.87
2.03
1.52
1.80
1.70
2.01
1962
9.0
8.9
9.1
7.9
8.0
7.7
16.0
14.6
18.2
1960
1.93
2.07
1.77
2.03
2.18
1.71
1.67
1.44
2.10
1963
8.8
8.8
8.9
7.7
7.8
7.4
16.8
15.5
18.7
1961
1.93
2.08
1.69
1.96
2.17
1.58
1.63
1.37
2.10
1964
8.3
8.1
8.6
7.3
7.4
7.1
15.0
12.6
18.3
1962
2.05
2.17
1.90
2.08
2.22
1.79
1.80
1.57
2.17
1965
6.7
6.4
7.3
6.1
5.9
6.3
11.1
9.3
13.7
1963
2.05
2.20
1.82
2.03
2.23
1.68
2.05
1.89
2.31
1966
5.3
4.6
6.3
4.6
4.1
5.3
9.9
7.9
12.6
1964
2.18
2.45
1.87
2.15
2.47
1.69
2.08
1.83
2.44
1967
5.7
4.6
7.0
5.0
4.2
6.0
10.6
8.0
13.8
1965
2.09
2.29
1.83
2.10
2.36
1.75
1.88
1.69
2.14
1968
5.8
5.1
6.7
5.2
4.6
5.9
10.1
8.3
12.3
1966
2.04
2.09
1.91
2.00
2.05
1.77
2.02
1.80
2.25
1967
2.19
2.30
1.89
2.08
2.21
1.76
2.26
2.16
2.30
1968
2.52
2.83
2.09
2.48
2.71
2.03
2.53
2.59
2.41
Table A-10. Unemployment rates, 25 years and over,
Table A-12. Ratios of Negro/white and male/female
annual averages, by color and sex
unemployment rates, 16-19 year-olds, annual averages
[Ratios of unemployment rates]
White
All other
Year
Total
Male
Female
Negro/White 1
Male/Female
Total
Male
Female
Total
Male
Female
Year
Total
Male
Female
Total
White
Nonwhite
1948
2.9
2.7
3.4
2.7
2.6
3.2
4.5
4.4
5.5
1949
4.8
4.8
4.9
4.5
4.5
4.6
7.2
7.8
6.2
1950
4.4
4.2
4.8
4.0
3.8
4.4
7.8
8.4
7.0
1948
1.26
1.02
1.74
1.18
1.27
0.75
1951
2.8
2.4
3.9
2.6
2.2
3.8
4.5
4.2
5.0
1949
1.30
1.19
1.50
1.16
1.19
.94
1952
2.4
2.2
3.0
2.2
2.0
2.8
4.5
4.6
4.3
1950
1.30
1.22
1.43
1.11
1.14
.97
1953
2.4
2.3
2.7
2.2
2.1
2.5
3.9
4.1
3.5
1951
1.41
1.15
1.86
.98
1.05
.65
1954
4.7
4.4
5.3
4.2
3.9
4.9
8.7
9.2
7.8
1952
1.27
1.03
1.71
1.13
1.17
.71
1955
3.6
3.4
4.1
3.2
3.0
3.7
7.5
7.9
6.9
1953
1.17
1.04
1.46
1.10
1.14
.81
1956
3.3
3.1
3.9
2.9
2.7
3.5
6.8
6.8
6.9
1954
1.37
1.07
1.98
1.18
1.29
.70
1957
3.4
3.2
3.9
3.1
2.8
3.6
6.4
6.8
5.6
1955
1.50
1.19
2.11
1.14
1.24
.70
1958
5.6
5.6
5.7
5.1
5.0
5.3
10.4
11.9
8.3
1956
1.79
1.43
2.35
.99
1.08
.66
1959
4.4
4.3
4.8
3.9
3.7
4.4
8.7
9.6
7.4
1957
1.80
1.60
2.13
1.17
1.21
.91
1960
4.5
4.3
4.7
3.9
3.8
4.2
8.4
9.1
7.3
1958
1.90
1.71
2.24
1.20
1.24
.94
1961
5.4
5.2
5.8
4.8
4.6
5.3
10.4
11.2
9.3
1959
1.99
1.80
2.31
1.13
1.17
.91
1962
4.4
4.1
4.8
3.8
3.6
4.3
8.9
9.3
8.4
1960
1.80
1.71
1.95
1.10
1.10
.97
1963
4.3
4.0
4.9
3.8
3.5
4.4
8.2
8.2
8.1
1961
1.81
1.71
1.97
1.05
1.06
.92
1964
3.8
3.3
4.6
3.4
3.0
4.2
7.2
6.9
7.5
1962
1.90
1.61
2.36
1.01
1.07
.73
1965
3.2
2.8
4.0
2.9
2.5
3.6
5.9
5.5
6.4
1963
2.02
1.72
2.30
1.00
1.05
.79
1966
2.6
2.2
3.3
2.3
2.0
3.0
4.9
4.4
5.6
1964
1.84
1.65
2.12
.95
.99
.77
1967
2.6
2.0
3.7
2.4
1.9
3.4
4.7
3.7
6.0
1965
1.98
1.81
2.26
.90
.92
.74
1968
2.3
1.8
3.2
2.1
1.7
2.9
4.0
3.2
5.1
1966
2.27
2.03
2.59
.83
.87
.68
1967
2.38
2.22
2.60
.91
.94
.80
1968
2.16
2.19
2.37
.83
.84
.77
1 Data on Negroes include other races.
21
Table A-13. Teenage unemployment by sex and color in U.S., SMSA's of 250,000 or more inhabitants,
poverty and other neighborhoods of these SMSA's, annual averages, 1968
Unemployment (in thousands)
Unemployment rates
Age, sex, and color
SMSA's of 250,000 or more
SMSA's of 250,000 or more
U.S.
U.S.
total
Poverty
Other
total
Poverty
Other
Total
neighbor-
neighbor-
Total
neighbor-
neighbor-
hoods
hoods
hoods
hoods
Total, 16-19
838
474
107
367
12.7
13.4
20.0
12.2
Male
426
242
57
185
11.6
12.7
18.8
11.6
Female
412
232
50
181
14.0
14.1
21.4
12.9
White, 16-19
644
351
43
308
11.0
11.4
14.3
11.1
Male
328
178
24
154
10.1
10.9
14.3
10.5
Female
316
173
19
154
12.1
12.0
14.3
11.8
Negro and other races, 16-19
195
123
64
59
25.0
25.9
27.3
24.5
Male
98
64
32
32
22.1
24.3
24.7
23.8
Female
96
59
32
28
28.8
28.0
30.7
25.4
Table A-14. Incidence of unemployment in 1967 for persons 16- to 24-years old, by age and sex, all persons
Total with unemployment
Percent distribution by weeks of unemployment
during 1967
Age and sex
Percent
15 weeks or more
of total
Less
5 to 14
Number
working
Total
than
weeks
or looking
5 weeks
Total
15 to 26
27 weeks
for work
weeks
or more
Total. 16 years and over
11,564
12.9
100.0
46.6
30.7
22.6
14.0
8.6
16 to 24 years
4,501
21.8
100.0
53.0
27.7
19.2
11.7
7.5
16 and 17 years
947
22.0
100.0
54.6
26.4
19.0
10.3
8.7
18 and 19 years
1,373
26.5
100.0
55.1
28.3
16.6
9.8
6.8
20 to 24 years
2,181
19.5
100.0
51.0
28.0
21.0
13.6
7.4
25 years and over
7,063
10.3
100.0
42.6
32.6
24.8
15.4
9.4
MEN
Total. 16 years and over
6,655
12.6
100.0
43.4
32.8
23.7
15.2
8.5
16 to 24 years
2,444
22.9
100.0
49.0
29.0
22.0
13.6
8.3
16 and 17 years
579
23.3
100.0
50.6
25.9
23.5
12.6
10.9
18 and 19 years
672
26.1
100.0
50.3
30.4
19.3
12.1
7.3
20 to 24 years
1,193
21.2
100.0
47.5
29.8
22.7
15.0
7.7
25 years and over
4,211
10.0
100.0
40.2
35.1
24.7
16.2
8.5
WOMEN
Total, 16 years and over
4,909
13.4
100.0
51.0
27.8
21.2
12.3
8.9
16 to 24 years
2,057
20.6
100.0
57.8
26.3
16.0
9.5
6.5
16 and 17 years
368
20.4
100.0
60.9
27.2
12.0
6.8
5.2
18 and 19 years
701
26.8
100.0
59.6
26.4
14.0
7.6
6.4
20 to 24 years
988
17.7
100.0
55.3
25.8
18.9
11.8
7.1
25 years and over
2,852
10.7
100.0
46.1
29.0
24.9
14.4
10.6
RALD
22
Table A-15. Incidence of unemployment in 1967 for persons 16- to 24-years old, by age and sex, white persons
Total with unemployment
Percent distribution by weeks of unemployment
during 1967
Age and sex
Percent
15 weeks or more
of total
Less
5 to 14
Number
working
Total
than
weeks
or looking
5 weeks
Total
15 to 26
27 weeks
for work
weeks
or more
Total, 16 years and over
9,576
12.1
100.0
48.3
30.6
21.1
13.1
8.0
16 to 24 years
3,714
20.5
100.0
55.7
27.1
17.3
10.5
6.8
16 and 17 years
779
20.8
100.0
57.0
24.8
18.2
9.4
8.9
18 and 19 years
1,130
25.0
100.0
57.7
27.7
14.6
8.6
6.0
20 to 24 years
1,805
18.4
100.0
53.8
27.6
18.6
12.1
6.4
25 years and over
5,862
9.6
100.0
43.7
32.9
23.4
14.7
8.7
MEN
Total, 16 years and over
5,595
11.8
100.0
45.1
33.1
21.8
14.2
7.7
16 to 24 years
2,024
21.7
100.0
51.7
28.9
19.5
11.8
7.7
16 and 17 years
474
21.8
100.0
52.3
25.1
22.6
11.6
11.0
18 and 19 years
550
24.7
100.0
51.8
30.7
17.5
10.9
6.5
20 to 24 years
1,000
20.2
100.0
51.3
29.6
19.1
12.4
6.7
25 years and over
3,571
9.4
100.0
41.3
35.5
23.2
15.5
7.7
WOMEN
Total, 16 years and over
3,981
12.5
100.0
52.9
27.1
20.0
11.5
8.4
16 to 24 years
1,690
19.3
100.0
60.4
24.9
14.7
8.9
5.8
16 and 17 years
305
19.3
100.0
64.3
24.3
11.5
5.9
5.6
18 and 19 years
580
25.3
100.0
63.3
24.8
11.9
6.4
5.5
20 to 24 years
805
16.5
100.0
56.9
25.2
17.9
11.8
6.1
25 years and over
2,291
9.9
100.0
47.4
28.7
23.9
13.5
10.4
Table A-16. Incidence of unemployment in 1967 for persons 16- to 24-years old, by age and sex, Negroes and other
races
Total with unemployment
Percent distribution by weeks of unemployment
during 1967
Age and sex
Percent
15 weeks or more
of total
Less
5 to 14
Number
working
Total
than
weeks
or looking
5 weeks
Total
15 to 26
27 weeks
for work
weeks
or more
Total, 16 years and over
1,988
19.6
100.0
38.5
31.2
30.3
18.5
11.8
16 to 24 years
787
30.6
100.0
40.5
31.0
28.5
17.7
10.8
16 and 17 years
168
31.0
100.0
43.5
33.9
22.6
14.9
7.7
18 and 19 years
243
36.5
100.0
42.8
31.3
25.9
15.2
10.7
20 to 24 years
376
27.5
100.0
37.8
29.5
32.7
20.5
12.2
25 years and over
1,201
15.9
100.0
37.1
31.4
31.5
19.1
12.4
MEN
Total, 16 years and over
1,060
19.6
100.0
34.9
31.4
33.7
20.9
12.7
16 to 24 years
420
31.1
100.0
36.2
29.8
34.0
22.4
11.7
16 and 17 years
105
33.0
100.0
42.9
29.5
27.6
17.1
10.5
18 and 19 years
122
35.0
100.0
43.4
28.7
27.9
17.2
10.7
20 to 24 years
193
28.3
100.0
28.0
30.6
41.4
28.5
13.0
25 years and over
640
15.7
100.0
34.1
32.5
33.4
20.0
13.4
WOMEN
Total. 16 years and over
928
19.7
100.0
42.6
31.0
26.4
15.7
10.7
16 to 24 years
367
29.9
100.0
45.5
32.4
22.1
12.3
9.8
16 and 17 years
63
28.1
(1)
(1)
(1)
(1)
(1)
(1)
18 and 19 years
121
38.3
100.0
42.1
33.9
24.0
13.2
10.7
20 to 24 years
183
26.6
100.0
48.1
28.4
23.5
12.0
11.5
25 years and over
561
16.1
100.0
40.6
30.1
29.2
18.0
11.2
1 Percent not shown where base is less than 75,000.
23
Table A-17. Unemployed 16-19 year olds, by reasons for unemployment, duration, sex, and color, 1968 annual averages
[in thousands)
Both races
White
All other
Reasons and duration
Total
Male
Female
Total
Male
Female
Total
Male
Female
Total
839
427
412
644
328
316
194
98
96
Less than 5 weeks
528
264
264
415
205
210
113
59
54
5-14 weeks
236
127
109
174
95
79
62
32
30
15 weeks and over
76
36
40
56
28
28
20
8
12
Lost Last Job
130
84
46
100
64
36
30
20
10
Less than 5 weeks
84
55
29
65
42
23
18
12
6
5-14 weeks
36
23
13
25
17
8
10
6
4
15 weeks and over
11
6
5
9
5
4
3
2
1
Left Last Job
97
51
46
74
38
36
23
13
10
Less than 5 weeks
66
34
32
51
26
25
14
8
6
5-14 weeks
25
14
11
18
9
9
6
3
3
15 weeks and over
7
4
3
5
3
2
2
1
1
Re-entrance Labor Force
281
153
128
214
119
95
67
34
33
Less than 5 weeks
174
89
85
135
69
66
38
20
18
5-14 weeks
83
52
31
62
40
22
21
12
9
15 weeks and over
23
11
12
17
10
7
8
2
6
Never Worked Before
330
138
192
256
107
149
74
31
43
Less than 5 weeks
205
86
119
163
68
95
42
18
24
5-14 weeks
91
38
53
67
28
39
24
10
14
15 weeks and over
33
14
19
26
11
15
8
3
5
Table A-18.
Unemployed Teenagers seeking full- or part-time employment, by sex, monthly, 1968
[in thousands]
Both sexes
Male
Female
Part time
Part time
Part time
Month
Total
Full time
Part time
as Per-
Total
Full time
Part time
as Per-
Total
Full time
Part time
as Per-
cent of
cent of
cent of
Total
Total
Total
January
650
335
314
48.4
385
175
209
54.4
265
160
105
39.6
February
769
367
402
52.3
417
191
226
54.2
352
176
176
50.1
March
722
366
356
49.3
400
174
227
56.7
322
193
129
40.2
April
619
313
307
49.5
320
134
187
58.3
299
179
120
40.1
May
616
371
245
39.8
292
174
118
40.3
324
196
127
39.4
June
1,598
1,200
398
24.9
778
594
184
23.6
820
606
214
26.1
July
,302
969
334
25.6
627
472
155
24.8
675
496
178
26.4
August
823
546
276
33.6
396
259
137
34.5
427
287
140
32.8
September
741
362
379
51.2
339
138
201
59.2
402
223
179
44.4
October
723
325
399
55.1
368
142
227
61.6
355
183
172
48.4
November
776
307
469
60.4
385
133
251
65.3
391
174
217
55.5
December
727
257
471
64.7
410
140
270
65.8
317
117
201
63.2
Annual average
838
476
362
43.2
426
227
199
46.7
412
249
163
39.6
School year average (excludes June-August)
705
334
371
52.6
369
156
213
57.7
336
178
158
47.0
24
Table A-19. Levels and rates of 16-19 year-old unemployment, annual averages, school year averages, June-July
averages, 1948-68
[levels in thousands]
June-July
Unemployment Rates
School year
average as
Year
Annual
School year
as percent
June-July
percent of
average
average 1
of annual
average
annual
Annual
School
June-July
average
average
average
year
average
average 1
1948
409
350
85.6
660
161.4
9.2
8.5
12.2
1949
576
500
86.8
886
153.8
13.4
12.4
17.5
1950
513
468
91.2
748
145.8
12.2
11.9
14.9
1951
336
292
86.9
533
158.6
8.2
7.6
10.9
1952
345
304
88.1
535
155.1
8.5
8.0
10.9
1953
307
279
90.9
439
143.0
7.6
7.4
9.1
1954
501
456
91.0
688
137.3
12.6
12.2
14.6
1955
450
404
89.8
653
145.1
11.0
10.6
13.4
1956
478
411
86.0
803
169.0
11.1
10.4
15.0
1957
497
434
87.3
791
159.2
11.6
11.0
14.8
1958
678
592
87.3
1,075
158.6
15.9
15.0
20.4
1959
654
574
87.8
990
151.4
14.6
13.9
17.6
1960
712
623
87.5
1,104
155.1
14.7
14.1
17.6
1961
828
717
86.6
1,312
158.5
16.8
16.0
20.5
1962
721
649
90.0
1,065
147.7
14.7
14.5
16.9
1963
884
776
87.8
1,405
158.9
17.2
16.6
21.4
1964
872
770
88.3
1,340
153.7
16.2
15.7
19.4
1965
874
776
88.8
1,367
156.4
14.8
14.4
18.2
1966
837
723
86.4
1,376
164.4
12.8
12.2
16.2
1967 2
837
721
86.1
1,334
159.4
12.8
12.2
15.8
1968 2
838
705
84.1
1,450
173.0
12.7
11.8
16.9
1 Excludes June, July, August.
those people unable to accept work during the survey week. This change
2 Historical data not comparable with 1967-68 data. Change in unem-
reduced the levels and rates of teenage unemployment in the spring,
ployment definitions introduced in 1967 excluded from the unemployed
especially in April and May.
Table A-20. Average levels and rates of unemployment
16-19 year olds, by whether seeking full- or part-time
work, 1963-68
Unemployed (in thousands)
Unemployment rates
Percent
Years
seeking
Total
Seeking
Seeking
part-time
Seeking
Seeking
Total
full-time
part-time
work
full-time
part-time
work
work
work
work
FULL YEARS
1963
1
904
622
284
31.4
17.3
18.7
15.0
1964
872
574
299
34.3
16.2
17.6
14.0
1965
874
564
312
35.7
14.8
15.9
13.2
1966
837
535
302
36.1
12.8
13.7
11.4
(2)
(²)
(:)
(2)
(2)
(2)
(²)
(2)
1967
838
482
356
42.5
12.8
13.2
12.4
1968
839
476
362
43.2
12.7
13.0
12.3
SCHOOL
YEARS
1963 1
791
511
281
35.5
16.7
19.3
13.4
1964
771
474
297
38.5
15.7
18.2
12.9
1965
776
458
318
41.0
14.4
16.1
12.5
1966
723
420
303
41.9
12.3
14.0
10.5
(2)
(2)
(2)
(2)
(*)
(2)
(2)
(:)
1967
721
353
358
51.0
12.2
12.7
11.8
1968
705
334
371
52.6
11.8
12.1
11.5
1 Excludes January 1963. first month when data was collected on whether seeking
full- or part-time work.
: Break in series; 1967.68 data not comparable with that for earlier years. January
1967 change in definitions reduced teenage unemployment in the spring. especially in
April and May. when many students were looking for full-time jobs to begin when the
school year ended.
25
Table A-21. Employed 16-19 year olds in agriculture and nonagriculture industries, by sex, 1948-68
Employed 16-19 year olds
Both sexes
Male
Female
as percent of total
employment in:
Year
Total
Agriculture
Non-
Total
Agriculture
Non-
Total
Agriculture
Non-
All
Agriculture
Non-
employed
agriculture
employed
agriculture
employed
agriculture
industries
agriculture
1948
4,028
734
3,292
2,344
604
1,740
1,682
130
1,552
6.9
9.6
6.5
1949
3,712
765
2,947
2,124
642
1,482
1,588
123
1,465
6.4
10.0
5.9
1950
3,703
704
2,999
2,186
613
1,573
1,517
91
1,426
6.3
9.8
5.8
1951
3,767
638
3,129
2,156
534
1,622
1,611
104
1,507
6.3
9.5
5.9
1952
3,718
634
3,085
2,107
529
1,578
1,612
105
1,507
6.2
9.8
5.7
1953
3,719
619
3,101
2,136
518
1,618
1,584
101
1,483
6.1
9.9
5.6
1954
3,475
584
2,891
1.985
491
1,494
1,490
93
1,397
5.8
9.4
5.4
1955
3,643
578
3,064
2,095
483
1,612
1,547
95
1,452
5.9
9.0
5.5
1956
3,818
553
3,265
2.164
459
1,705
1,654
94
1,560
6.0
8.8
5.7
1957
3,780
541
3,237
2.115
458
1,657
1,663
83
1,580
5.9
9.1
5.6
1958
3,582
509
3,073
2,012
437
1,575
1,570
72
1,498
5.7
9.1
5.3
1959
3,838
529
3,309
2,198
443
1,755
1,640
86
1.554
5.9
9.5
5.6
1960
4,129
566
3,563
2,361
471
1,890
1,768
95
1,673
6.3
10.4
5.9
1961
4,107
528
3,580
2,315
449
1.866
1,793
79
1,714
6.2
10.2
5.9
1962
4,195
482
3,713
2,362
413
1,949
1,833
69
1.764
6.3
9.7
6.0
1963
4,255
461
3,794
2,406
381
2,025
1,849
80
1,769
6.3
9.8
6.0
1964
4,516
463
4,053
2,587
388
2,199
1,929
75
1,854
6.5
10.2
6.3
1965
5,036
439
4,597
2,918
373
2,545
2.118
66
2,052
7.1
10.1
6.9
1966
5,721
410
5,311
3,253
349
2,904
2,468
61
2,407
7.8
10.3
7.7
1967
5,682
405
5,277
3,186
343
2,843
2,496
62
2,435
7.6
10.5
7.5
1968
5,780
394
5,385
3,254
341
2,914
2,525
54
2,472
7.6
10.3
7.5
Table A-22. Employed persons as percent of total employment in group by industry division, selected age groups and
sex, 1940, 1950, and 1960
Male
Industry division
1960
1950
1940 3
Total
14-17
18-19
Total
14-17
18-19
Total
14-17
18-19
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Agriculture, forestry, and fisheries
9.0
19.4
11.9
15.8
42.3
24.6
23.5
63.0
36.4
Mining
1.4
.2
.7
2.2
.4
1.5
2.7
.4
1.6
Construction
8.4
2.9
6.8
8.3
2.9
6.6
5.9
1.6
3.5
Manufacturing
30.2
19.8
25.5
27.1
17.1
25.3
24.2
11.5
21.5
Transportation. communication, and other public utilities
8.5
1.6
3.8
9.2
1.9
5.0
8.1
1.6
3.4
Wholesale and retail trade
17.0
33.8
29.2
17.0
20.9
22.0
16.2
13.0
18.1
Wholesale trade
4.1
1.8
3.1
3.9
1.4
3.1
3.0
.8
2.0
Retail trade
13.0
32.0
26.1
13.2
19.5
18.9
13.2
12.2
16.1
Finance, insurance, and real estate
3.4
.7
1.8
2.8
.5
1.6
3.0
.3
1.2
Business and repair services
2.9
2.5
3.4
2.8
1.5
2.6
2.3
1.0
2.0
Personal services
2.5
5.0
2.8
2.9
3.1
2.7
3.3
2.1
2.6
Entertainment and recreation services
.8
3.4
1.6
is
4.1
1.9
is
1.7
1.7
Professional and related services
6.9
3.3
5.4
5.0
1.5
2.5
4.3
.7
1.3
Public administrations
5.3
.4
1.4
4.6
.4
1.0
4.2
.2
4.3
Industry not reported
3.6
7.2
5.5
1.3
3.6
1.8
1.3
2.7
2.3
Female
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Agriculture, forestry, and fisheries
2.0
4.1
1.3
3.8
12.5
3.0
4.4
23.4
5.3
Mining
.2
(1)
.1
.1
(1)
.1
.1
(¹)
.1
Construction
.7
.3
.7
.6
.2
.5
.3
.1
.3
Manufacturing
20.8
7.9
18.5
23.2
11.0
22.0
20.8
13.0
23.6
Transportation communication. and other public utilities
3.6
1.8
5.8
4.4
1.8
6.9
3.1
.7
2.5
Wholesale and retail trade
20.8
34.9
22.7
22.6
32.9
26.9
18.2
11.3
20.0
Wholesale trade
2.1
1.1
2.5
2.4
1.1
2.9
1.6
.7
1.6
Retail trade
18.6
33.8
20.3
20.1
31.7
23.9
16.6
10.7
18.3
Finance. insurance. and real estate
5.8
3.6
13.0
5.0
2.5
10.6
4.1
is
3.7
Business and repair services
1.6
1.0
1.8
1.2
.5
1.3
.7
.2
.7
Personal services
13.1
25.0
8.9
14.8
23.5
9.2
25.8
42.3
27.7
Entertainment and recreation services
.7
2.4
1.0
is
3.2
1.3
.7
is
1.0
Professional and related services
21.5
10.1
17.7
17.3
6.4
13.8
16.6
3.3
11.0
Public administrations
4.3
.4
2.7
4.2
.4
2.2
3.0
.2
1.2
Industry not reported
4.8
8.5
5.9
2.0
5.1
2.0
2.1
3.6
3.0
$ 1960 Census of Population-Vol. 1, Characteristics of the Population;
3 1940 Census of Population-Vol. III, The Labor Force, Pt. 1, U.S.
Pt. 1. U.S. Summary, table 212.
Summary, table 80.
2 1950 Census of Population-Vol. II, Characteristics of the Population;
4 Less than 0.05 percent.
Pt. 1, U.S. Summary, table 132.
26
Table A-23. Employed Persons as Percent of Industry Employment, by Industry Division, Selected Age Groups and Sex,
1940, 1950, and 1960
Male
Industry division
1960 1
1950 :
1940 3
Total
14-17
18-19
Total
14-17
18-19
Total
14-17
18-19
Total
100.0
3.0
2.7
100.0
2.2
2.7
100.0
1.9
3.2
Agriculture, forestry, and fisheries
100.0
6.5
3.5
100.0
6.0
4.2
100.0
5.1
5.0
Mining
100.0
.3
1.3
100.0
.4
1.8
100.0
.3
2.0
Construction
100.0
1.0
2.2
100.0
.8
2.2
100.0
.5
1.9
Manufacturing
100.0
2.0
2.2
100.0
1.4
2.6
100.0
.9
2.9
Transportation. communication, and other public utilities
100.0
.6
1.2
100.0
.5
1.5
100.0
.4
1.3
Wholesale and retail trade
100.0
6.0
4.6
100.0
2.7
3.4
100.0
1.5
3.6
Wholesale trade
100.0
1.3
2.1
100.0
.8
2.1
100.0
.5
2.1
Retail trade
100.0
7.5
5.4
100.0
3.3
3.8
100.0
1.8
4.0
Finance. insurance. and real estate
100.0
.6
1.4
100.0
.4
1.5
100.0
.2
1.3
Business and repair services
100.0
2.6
3.1
100.0
1.1
2.3
100.0
.8
2.8
Personal services
100.0
6.1
3.0
100.0
2.4
2.5
100.0
1.2
2.6
Entertainment and recreation services
100.0
13.0
5.5
100.0
9.1
5.2
100.0
3.5
6.1
Professional and related services
100.0
1.4
2.1
100.0
.7
1.4
100.0
.3
1.0
Public administrations
100.0
.2
.7
100.0
.2
.6
100.0
.1
3.4
Female
Total
100.0
3.2
4.8
100.0
2.5
5.5
100.0
2.0
6.3
Agriculture, forestry, and fisheries
100.0
6.8
3.1
100.0
8.4
4.4
100.0
10.9
7.7
Mining
100.0
.6
3.9
100.0
.6
5.2
100.0
.6
4.1
Construction
100.0
1.5
4.5
100.0
1.0
4.9
100.0
.9
6.4
Manufacturing
100.0
1.2
4.3
100.0
1.2
5.3
100.0
1.3
7.2
Transportation, communication, and other public utilities
100.0
1.6
7.6
100.0
1.0
8.9
100.0
.5
5.0
Wholesale and retail trade
100.0
5.5
5.3
100.0
3.7
6.6
100.0
1.3
6.9
Wholesale trade
100.0
1.6
5.6
100.0
1.2
6.8
100.0
.8
6.3
Retail trade
100.0
5.9
5.2
100.0
4.0
6.6
100.0
1.3
7.0
Finance, insurance. and real estate
100.0
2.0
10.7
100.0
1.3
11.9
100.0
.4
5.7
Business and repair services
100.0
1.9
5.3
100.0
1.1
6.2
100.0
.7
6.5
Personal services
100.0
6.2
3.3
100.0
4.0
3.5
100.0
3.3
6.8
Entertainment and recreation services
100.0
10.5
6.2
100.0
8.9
8.4
100.0
2.4
9.0
Professional and related services
100.0
1.5
3.9
100.0
.9
4.4
100.0
.4
4.2
Public administrations
100.0
.3
3.0
100.0
3.1
3.0
100.0
.1
2.5
27
Table A-24. Net employment shifts, employed persons, by industry division, selected age groups and sex, 1940-60,
United States
Males
Industry division
Total
14-17
18-19
1940-50
1950-60
1940-60
1940-50
1950-60
1940-60
1940-50
1950-60
1940-60
Agriculture, forestry, and fisheries
-7.7
-6.8
-14.5
-20.7
-22.9
-43.6
-11.8
-12.7
-24.5
Mining
-.5
-.8
-1.3
-.2
-.2
-.1
-.8
-.9
Construction
2.4
.1
2.5
1.3
1.3
3.1
.2
3.3
Manufacturing
2.9
3.1
6.0
5.6
2.7
8.3
4.8
-.8
4.0
Transportation. communication, and other public utilities
1.1
-.7
.4
.3
-.3
1.6
-1.2
.4
Wholesale and retail trade
.8
.8
7.9
12.9
20.8
3.9
7.2
11.1
Wholesale trade
is
.2
1.1
.6
.4
1.0
1.1
1.1
Retail trade
-.2
-.2
7.3
12.5
19.8
2.8
7.2
10.0
Finance, insurance, and real estate
-.2
.6
.4
7.3
.2
.4
.4
.2
.6
Services (except private households)
1.1
1.6
2.7
4.3
2.2
6.5
2.3
3.3
5.6
Business and repair services
.5
.1
.6
.5
1.0
1.5
.6
.8
1.4
Personal services (except private households)
-.1
-.3
-.4
.6
.1
.7
.3
-.1
.2
Entertainment and recreation services
-.1
-.1
2.4
-.7
1.7
.2
-.3
-.1
Professional and related services
.7
1.9
2.6
.8
1.8
2.6
1.2
2.9
4.1
Private households
-.3
-.1
-.4
.4
1.7
2.1
-.2
.2
Public administrations
.4
.7
1.1
.2
.2
-3.3
.4
-2.9
2.3
2.3
is
3.6
4.5
-.5
3.7
3.2
Industry net reported
Females
Agriculture, forestry, and fisheries
-0.6
-1.8
-2.4
-10.9
-8.4
-19.3
-2.3
-1.7
-4.0
Mining
.1
.1
Construction
.3
.1
.4
.1
.1
.2
.2
.2
.4
Manufacturing
2.4
-2.4
-2.0
-3.1
-5.1
-1.6
-3.5
--5.1
Transportation. communication, and other public utilities
1.3
-.8
.5
1.1
1.1
4.4
-1.1
3.3
Wholesale and retail trade
4.4
-1.8
2.6
21.6
2.0
23.6
6.9
-4.2
2.7
Wholesale trade
8
-.3
.5
.4
.4
1.3
- .4
.9
Retail trade
3.5
-1.5
2.0
21.0
2.1
23.1
5.6
-3.6
2.0
2.7
6.9
2.4
9.3
Finance, insurance, and real estate
is
.8
1.7
1.6
1.1
Services (except private households)
- .2
3.6
3.4
13.8
-4.1
9.7
2.6
4.0
6.6
Business and repair services
.5
.4
is
.3
.5
8
.6
.5
1.1
Personal services (except private households)
-1.6
-.8
-2.4
8.1
-7.5
.6
-1.1
-.1
-1.2
Entertainment and recreation services
.2
-.2
2.3
-.8
1.5
.3
-.3
Professional and related services
.7
4.2
4.9
3.1
3.7
6.8
2.8
3.9
6.7
Private households
-9.4
-.9
10.3
-26.9
9.0
-17.9
-17.4
-.2
-17.6
Public administrations
1.2
.1
1.3
.2
.2
1.0
.5
1.5
Industry not reported
-.1
2.8
2.7
1.5
3.4
4.9
-1.0
3.9
2.9
28
Table A-25. Employed 16-19 year olds, by occupation and sex, annual averages, 1963 and 1968
1968
1968
1963
1963
Occupation
(in thousands)
Percent of total employed
(in thousands)
Percent of total employed
Both
Male
Female
Both
Male
Female
Both
Male
Female
Both
Male
Female
sexes
sexes
sexes
sexes
Total
5,780
3,254
2,525
7.6
6.8
9.1
4,252
2,405
1,847
6.2
5.3
7.9
White collar
2,039
647
1,392
5.7
3.4
8.5
1,484
503
981
4.9
2.9
7.6
Profess and technical
178
94
84
1.7
1.5
2.2
111
57
54
1.3
1.1
1.8
Manager, Officials and Proprietors
35
26
9
.5
.4
.7
34
27
7
.5
.4
.6
Clerical
1,333
300
1,032
10.4
8.8
11.0
958
214
744
9.3
6.8
10.4
Sales workers
493
226
267
10.6
8.3
13.9
381
205
176
8.7
7.8
10.3
Blue Collar
2,076
1,810
265
7.5
7.9
5.6
1,413
1,235
178
5.7
5.8
4.6
Craftsmen
252
242
11
2.5
2.5
3.4
150
144
6
1.7
1.7
2.5
Operatives
1,049
813
236
7.5
8.4
5.5
713
554
159
5.7
6.1
4.5
Nonfarm laborers
775
756
19
21.8
22.0
15.1
550
537
13
15.5
15.5
13.8
Service workers
1,307
488
820
13.9
14.8
13.5
927
312
615
10.3
9.9
10.5
Private households
324
9
314
18,8
25,7
18,6
311
11
300
13,5
18.3
13.4
Other
984
478
506
12.9
14.6
11.5
616
301
315
9.2
9.7
8.7
Farm workers
358
310
48
10.3
10.8
8.2
428
355
73
9.3
9.5
8.4
Farmers and farm managers
14
13
.7
.7
19
17
2
.8
.8
1.5
Farm laborers and foremen
344
296
47
22.4
28.6
9.3
409
338
71
18.4
22.7
9.7
Table A-26. Mean age at entrance into armed services¹
Fiscal year
Enlistees DOD
Inductees DOD
1957
18.6
22.4
1958
18.5
22.6
1959
18.5
22.4
1960
18.4
22.7
1961
18.6
23.1
1962
18.7
23.0
1963
18.7
23.1
1964
18.9
22.4
1965
18.7
21.5
1966
19.4
20.2
1967
19.2
20.3
1968
19.3
20.3
1 DOD data are weighted averages of months.
Source: Department of Defense.
Table A-27. Estimates of the status of nonsupervisory employees under the minimum wage provisions of the FLSA as
of February 1, 1969¹
Employees covered by FLSA
Percent of nonsupervisory
employees covered by FLSA
Number of
Industry
nonsupervisory
employees
Total
Covered
Covered
Total
Covered
Covered
number
prior to 1966
by 1966
covered
prior to
by 1966
covered
amendments
amendments
1966
amendments
Agriculture. forestry. and fisheries
1,327
617
19
598
46.5
1.4
45.1
Mining
558
553
553
99.1
99.1
0
Contract construction
3,312
3,277
2,679
598
98.9
80.9
18.1
Manufacturing
18,081
17,495
17,425
70
96.8
96.4
.4
Transportation, communications, utilities
4,026
3,952
3,847
105
98.2
95.6
2.6
Wholesale trade
3,392
2,576
2,450
126
75,9
72.2
3.7
Retail trace
9,574
5,566
3,158
2,408
58.1
33.0
25.2
Finance. insurance. real estate
2,963
2,215
2.215
74.8
74.8
0
Services (excluding domestic service)
7,893
5,576
1,869
3,709
70.6
23.7
47.0
Domestic service
2,380
0
0
0
Government
(:)
2,742
2,742
(2)
(:)
(:)
Private economy, excluding agriculture and domestic service
49,799
41,210
34,194
7,016
82.8
68.7
14.1
Private economy
53,506
41,827
34,213
7,614
78.2
63.9
14.2
1 Estimates based on employment data for 1968. All employees are
2 Not available.
included except academic administrative personnel and teachers in ele.
Source: Minimum Wage and Maximum Hours Standards under the Fair
mentary and secondary schools and executive. administrative, and profes-
Labor Standards Act (U.S. Department of Labor, Wage and Hour and Public
sional workers in all other industries. Estimates for agriculture include
Contracts Divisions, Jan. 14, 1969), pp. 28-29.
data from a survey conducted by the Department of Agriculture as of May
1968. May data do not vary markedly from annual average data.
29
Table A-28. Basic Federal minimum wage as percent of
Table A-29. Percent of Employed and Unemployed 16 to
average hourly earnings in manufacturing in month basic
19 Year Olds Enrolled in School, October 1953 to 1968
minimum became effective
[Numbers in thousands)
Effective date
Percent
Employed
Unemployed
October 1938
40.6
Enrolled in school
Enrolled in school
October 1939
47.6
Year
October 1945
41.1
Total
Total
January 1950
53.8
Percent
Percent
March 1956
52.1
Number
of
Number
of
September 1961
49.6
total
total
September 1963
51.0
February 1967
50.2
February 1968
54.4
1953
3,517
1,000
28.4
236
52
22.0
1954
3,439
1,205
35.0
340
79
23.2
1955
3,802
1,389
36.5
330
103
31.2
1956
3,789
1,485
39.2
294
106
36.1
1957
3,784
1,534
40.5
357
111
31.1
1958
3,643
1,572
43.2
545
142
26.1
1959
3,791
1,656
43.7
564
164
29.1
1960
4,035
1,703
42.2
621
189
30.4
1961
4,001
1.607
40.2
664
206
31.0
1962
4,076
1,741
42.7
559
198
35.4
1963
4,293
2,066
48.1
725
268
37.0
1964
4,433
2,135
48.2
684
269
39.3
1965
5,228
2,571
49.2
723
315
43.6
1966
5,523
2,870
52.0
660
282
42.7
1967
5,300
2,852
53.8
828
403
48.7
1968
5,517
3,116
56.5
725
382
52.7
&
FORD
BRALD
CHAPTER II
Experience of the Past: The National Minimum
Past Studies 1
Brozen's article also provided data on
In addition to studies included in this volume,
changes in unemployment rates for the 12
there are a number of published (Brozen,
months before and the 12 months after a
Burns, Folk, Thurow) and unpublished (Barth,
change. In this comparison, the unemployment
Easley-Fearn, Kosters-Welch, Moore, Scully)
rate for teenagers dropped in four of the six
studies on the relationship between the national
cases where data are available, rose in one, and
minimum wage and youth unemployment.
remained the same in the other. This is only
These studies provide no consensus. Brozen,
slightly different from the record for the overall
Burns, Easley-Fearn, Kosters-Welch, Moore,
unemployment rate, which dropped in five of
and Scully concluded that disemployment effects
the six cases and remained the same in the
from minimum wages were demonstrable
other.
Barth, Folk, and Thurow concluded they were
Brozen also noted that the ratio of teenage
not. Studies have also been made of the effects
unemployment rates to the overall unemploy-
of State minimum wage laws on the employ-
ment rate rose in the average of 12 months
ment of youth by Kalachek and Katz.2
after, compared with the average of 12 months
before, minimum wage changes in six instances
STUDIES FINDING ADVERSE EFFECTS OF NATIONAL
reposted.
MINIMUM. The Brozen study relies upon
The Burns study is based on unpublished re-
changes in the unemployment rates before and
gressions relating the unemployment rate of
after changes in the Federal minimum. In the
teenagers, to the unemployment rate of adult
eight instances when the Federal minimum
was changed, the seasonally adjusted unemploy-
males (a proxy measure for general business
ment rate of 16-19 year olds was lower the
conditions) and to the minimum wage as a per-
month before the change than the month the
cent of average hourly earnings in manufactur-
change became effective in six instances, higher
ing. He found a significant relationship between
in one case, and the same in the other. If, in-
minimum wages and the unemployment rate of
stead, comparisons are made (which Brozen did
teenagers, especially so in the case of Negro
not) between the unemployment rate 2 months
teenagers. Regressions using one- and two-
before the change and 1 month after, the rate
quarter lags did not materially improve the fit
rose in only three cases, dropped in four, and
of the equations in this analysis.
remained the same in one case. This raises some
The forecasting ability of the equation for
question about the meaningfulness of the
white teenagers has been examined in some ad-
change in rates between two adjacent months.
ditional detail. For the period, 1954-I (first
quarter) through 1965-II (second quarter), it
Prepared by Hyman B. Kaitz, Chief, Division of
Statistical Standards, Bureau of Labor Statistics.
has an adjusted R² of 0.359 and a Durbin-Wat-
Text footnotes begin on p. 45. Appendixes follow.
son co-efficient of 0.352. The patterns of resid-
30
31
3
uals show that white teenage unemployment is
minimum wage (as did Burns), but also (in one
over-estimated from 1954-I through 1959-I, and
regression) the relative size of the teenage
under-estimated from 1959-II through 1965-II
labor force and the proportion of workers (not
with only two exceptions in the latter period.
only teenage) covered by the minimum wage.
e
These patterns indicate that significant varia-
The model also included a complex lag struc-
bles have very likely been excluded from this
ture. The lag structure, as fitted, suggested that
equation. Since this equation was based on orig-
minimum wage effects were not fully realized
inal data through 1965-II, it was subsequently
for 2 years. The lag structure was constructed
examined for its forecasting ability through
SO that minimum wages had no effect immedi-
1968-IV. Though it correctly predicted the
3
ately but gradually increased. Moore found a
direction of change, the equation continued to
significant adverse relationship between mini-
underestimate the actual white teenage unem-
mum wages and teenage unemployment rates.
ployment rate, although by less than it had be-
Effects upon Negroes were greater than those
tween 1963 and 1965. Clearly other important
upon white, and for females greater than for
influences were at work.
male teenagers.
The Easley-Fearn study is similar to the Folk
The Scully paper related teenage unemploy-
study discussed below. They related the unem-
ment rates to these of adult males (as did Burns
ployment rate of teenagers in various age-sex-
and Moore) and added a series of quasi-dummy
color-school enrollment groups to the unemploy-
variables for periods when the minimum wage
ment rate of adults, the proportion of teenagers
was raised. No other variables were included.
in the labor force, and a set of dummy variables
The minimum wage variable was significant in
for each statutory minimum wage level applica-
four out of five instances but, as Scully noted,
ble to a particular period of time. Some of the
the results do not support the conclusion that all
regression analyses also include dummy varia-
the effects associated with the minimum wage
bles for the extensions of coverage effective in
variable was attributable to the minimum wage.
1961 and 1967. The results indicated that both
The studies reviewed above can be criticized
the level and coverage of the minimum wage
on the grounds that crude measures of the mini-
laws had significant adverse effects on the un-
mum wage were used or relevant variables were
employment of teenagers, especially SO in the
not considered in many of the analyses. Brozen
case of Negro teenagers.
looked only at the "before" and "after" situa-
The Kosters-Welch study, using quarterly
tion, which actually presents a mixed picture,
data for the period 1954 through 1968, separate
and considered the effects of no other develop-
projected total employment from actual total
ments. Scully and Easley-Fearn used dummy or
employment, the difference being transitional
quasi-dummy variables representing changes
employment. Using a nonlinear relationship,
(or levels) of the minimum wage, but no viable
the authors regressed the employment of differ-
measure of the relative level. Burns used a mea-
ent sex-color groups of teenagers against pro-
jected employment, transitional employment
sure of minimum wages not especially relevant
and the minimum wage. The measure of the
to the teenage group and did not consider addi-
minimum wage used was the minimum wage as
tional variables other than the adult unemploy-
percent of average hourly earnings in manufac-
ment rate. The analyses by Moore and Kosters-
turing times the estimated coverage of the Fed-
Welch are more sophisticated but generally con-
eral law. The authors found that increases in
sider the effects of few additional variables.
the effective minimum wage would decrease the
teenage share of total employment and also
STUDIES FINDING NO ADVERSE EFFECTS OF NA-
make teenage employment more sensitive to
TIONAL MINIMUM. Folk used data from the Oc-
cyclical variations.
tober Current Population Surveys for 1948 to
The Moore study had an elaborate model
1966 to relate the unemployment rate and the
which included not only the unemployment rate
labor force participation rate of different age-
of adult males and the relative magnitude of the
sex-groups of young people, classified by school
32
enrollment status, to the unemployment rate of
teenage employment to the availability of unem-
adult males and a time variable. A simple
ployed adult labor, the ratio of teenage to total
dummy variable was also included for those
employment, a measure of the flexibility of rela-
years when the minimum wage was signifi-
tive wages, the occupational and industrial com-
cantly increase. Folk did not find the minimum
position of employment, and other control vari-
wage variable significant, and in 11 out of 16
ables (proportion of teenagers in school, pro-
regressions the signs of the regression coeffi-
portion married, income of married males, and
cients were contrary to theoretical expectations.
Negro proportion of the teenage population), as
Thurow related employment of disadvan-
well as a dummy variable for the presence of a
taged to comparable advantaged groups in a so-
State minimum wage law. Applying his analy-
phisticated model which included minimum
sis to data for the 75 largest SMSA's drawn from
wage as a percent of average hourly earnings as
the 1960 Census of Population, Kalachek found
an explanatory variable. His model provides a
that the proxy variable for the minimum wage
test of the deterioration in the employment po-
either had the wrong sign or was statistically
sition of teenagers relative to adults and of
insignificant in his analyses.
white relative to other teenagers, but not a test
Katz also analyzed the 1960 census data for
of absolute employment effects nor of relative
male teenagers in 67 metropolitan areas. Unlike
unemployment effects. Minimum wages proved
to be an insignificant variable, and parts of
Kalachek, Katz used estimated hourly earnings,
Thurow's analysis contradict findings in Broz-
rather than weekly earnings. Further, the study
en's and Moore's analysis.3
used a model with separate equation for labor
The Barth model relates employment (not un-
demand, teenagers' demand for schooling, and
employment) levels of various teenage groups
the labor force participation of students and of
to the employment level of adults, a trend varia-
nonstudents. The preliminary findings of the
ble, and a dummy variable (or variables) repre-
study indicate that the demand for teenage
senting periods when the minimum wage was
labor was elastic and that minimum wage laws
raised. While structurally similar to the Scully
had a substantial effect on teenage wages and,
model (which used unemployment rather than
hence, that extending minimum wage coverage
employment), Barth found the minimum wage
to the other States would have curbed employ-
variable frequently insignificant and, where sig-
ment opportunities of teenagers in those areas.
nificant, only occasionally indicating the direc-
In fact, however, the difference in the rate of
tion of change that economic theory would sug-
employment between the two groups of metro-
gest.
politan areas was very modest, though other
The Folk and Barth studies, like Scully and
Easley-Fearn, used dummy variables, which are
factors may have offset the greater differences
fairly crude measures of minimum wage. Folk
expected due to minimum wage coverage alone.
had included a trend variable which may have
The author speculated that, to the degree the
picked up some minimum wage effects. Thurow
extensions of coverage of the Federal law in
used stepwise regression methods which have
1961 and 1966 into the trade and service sectors
the danger of discarding relevant variables on
increased teenagers' wages relative to those for
purely statistical grounds. Thurow, Barth and
adults, it may have reduced teenage employ-
the Kosters-Walsh study differ from other
ment. Because a minimum wage might also dis-
studies since they concentrated on measures of
courage teenage labor force participation, the
employment rather than unemployment.
author notes, it would not necessarily cause
higher unemployment rates.
STUDIES OF STATE MINIMUM WAGE LAWS. An
additional approach to the evaluation of the ef-
New studies: an introduction
fects of minimum wages is through a cross-sec-
tion analysis of State minimum wage laws. Ka-
The basic intent of this chapter is to develop
lachek ran a number of regressions relating
relevant quantitative relations between teenage
33
unemployment and minimum wage rates in
Quarterly data, 1954-68
order to discern whether and by how much the
latter affect the former. Section 3 of this chap-
The equations representing the labor force
ter includes an analysis of quarterly data from
behavior of teenagers are all linear in the varia-
1954 through 1968. A separate investigation
bles discussed below, and were fitted by least
using annual data for 1948 through 1968 is pre-
squares. The general form is:
sented in section 4, with conclusions based on
all available materials in section 5. A more ex-
+ bk Xₖ
tensive discussion of the labor force data used
Limited investigation of comparable equations
can be found in the appendix A to this chapter.
which are linear in the logarithms of the varia-
The work underlying the rest of this chapter
bles was undertaken, but yielded substantially
contains a number of new elements not pre-
similar results and are only briefly mentioned.
viously considered. In the course of this work it
All data were seasonally adjusted quarterly
became clear that the study of the effect of min-
averages, except for population ratios, school
imum wage on teenage unemployment could
enrollment, and minimum wage variables. The
only be made within a more comprehensive ef-
historical period upon which the regression
fort to establish the determinants of teenage
equations were based was from the first quarter
labor force behavior. However, it was also evi-
of 1954 through the fourth quarter of 1968 (60
dent that neither time nor resources was availa-
observations).
ble for a comprehensive review and the mate-
rial presented here does not exhaust the possi-
Policy variables
bility for research by others. In fact, several
problems which were uncovered in the present
The policy variables are those which reflect
study need to be dealt with at greater length in
government laws and programs and therefore,
future work.
key to the entire analysis. The discussion is lim-
A considerable amount of the analysis in this
ited to those representing the effects over the
chapter is concerned with unemployment ratios
year of the Fair Labor Standards Act and its
rather than unemployment rates. It is impor-
amendments, and of Federal manpower pro-
tant to note the distinction here in order to
grams in recent years.
avoid later confusion. The unemployment ratio
is the percentage of the civilian noninstitu-
MINIMUM WAGE VARIABLE. The quantification of
tional population which is unemployed while
the effect of minimum wage provisions of the
the unemployment rate is the percentage of the
act has been attempted in various forms by var-
civilian labor force which is unemployed. Given
ious analysts. The simplest of these is a
the civilian labor force participation rate (the
"dummy" variable which has the value of one
percentage of the civilian noninstitutional pop-
after a change in the minimum wage, and of
ulation which is in the labor force), the rela-
zero prior to the change. Because this variable
tionship among these various quantities may be
expressed as follows:
allows for no gradation, it cannot pick up
change over several time periods. Ordinarily, a
100 (unemployment ratio)
unemployment
rate
=
dummy variable is used only when quantifying
labor force participation rate
a known effect is otherwise not possible.
Unemployment ratios were the primary varia-
A second simple variable which has been used
bles in the analysis because they were consi-
to represent the minimum wage is the actual
dered to be conceptually and analytically supe-
dollar value of the minimum rate, but a dollar
rior to the unemployment rates for reasons dis-
variable is deficient by itself. Some account
cussed later in this section. Results for unem-
must be taken of changing wage levels over the
ployment ratios are then translated into results
years. For example, the impact of a $1.60 mini-
for unemployment rates, since the letter are
mum would have been quite different in 1960
more widely used and understood.
than it was in 1968.
34
Others have modified this variable by taking
grams to create job or training opportunities
it as a ratio to a wage rate level, such as aver-
for a considerable number of young people. Es-
age hourly earnings in manufacturing. This
timates are available of the number of people of
variable is clearly superior to the two previous
various ages who have enrolled in the major
versions. Nevertheless, it still can be considered
programs and how they would be classified
only a first approximation for various reasons.
under the definition of the labor force survey.
As the FLSA has been amended over the year,
For example, those groups within the Neigh-
both the minimum rate has (have) changed
borhood Youth Corps would be counted as "em-
and the coverage provisions have changed. The
ployed;" enrollees in the Institutional Training
impact upon the labor market behavior of
Program would be called "unemployed," and
young people should take the detailed configu-
Job Corps enrollees are classified as "not in the
rations of these provisions into account. For
labor force."
one thing, a coverage variable needs to be added
Having the various enrollment figures for the
to the equations. In addition, the average hourly
major programs and knowing how these enroll-
earnings rates need to be calculated for those
ees are classified by labor force status gives us
industries and parts of industries covered by
some of the information we need. Also needed is
the FLSA and used in the denominator of the
data about what these people would have been
minimum rate variable, while the numerator
doing in the absence of these programs. For
should be a weighted combination of the various
example, can it be assumed that all those classi-
minimums in effect.
fied as "employed" under the Manpower Pro-
While this minimum wage variable is an im-
grams would have, in the absence of these pro-
provement over those previously used, it still
grams, been unemployed? A study of these pro-
falls short of what is wanted. More desirable is
grams by Malcolm Cohen assumed that "enroll-
a weighted average wage rate offered to youth.
ees would have continued at their previous em-
In those industries covered by the FLSA this
ployment status during their participation in
would be either the minimum rate or the actual
the Federal manpower program if there had
rate offered if it were above the minimum. In the
been no program.' This assumption, plus some
uncovered industries and firms, it would be the
others, resulted in estimates of increases to
actual wage offered. These rates would be
teenage employment of several hundred thou-
weighted by the number of jobs .held by and
sand. Whether or not the assumptions are real-
offered to youth.
istic, clearly some effect is present which must
The minimum wage variable actually used
be covered by regression equations. No assump-
falls short of this goal. Ratios of minimum
tions have been made about direct quantitative
wage rates to average hourly earnings were
measures for these program effects and there-
computed by industry and combined into an
fore, included four dummy variables have been
index in which the weight for an industry ratio
was the proportion of the industry covered by
included, one for each of the years 1965 through
FLSA times the ratio of the number of young
1968, in all of the regression equations. The re-
people employed in the industry to total youth
sults are discussed in the section on the regres-
employment. The explicit allowance for youth
sion equations themselves.
employment probably does not add much infor-
There is some possibility of interaction be-
mation content to this variable because of the
tween the dummy variable for 1967 and 1968
slow change in its industrial composition. This
and the increase in the minimum wage variable
minimum wage variable combines both mini-
for those years. However, no such interaction
mum and coverage effects, and no further al-
exists for the dummy variables in 1965 and
lowance is made for the latter.
1966. Moreover, if the dummy variables exhibit
some progression in pattern from 1965-66 to
MANPOWER PROGRAM VARIABLES. Since 1965, the
1967-68, the presumption is that something
Federal Government has developed and main-
other than the minimum wage effect is being
tained a number of significant manpower pro-
measured.
35
Dependent variables
ticipation ratios. Changes in employer hiring
practices should affect both the employment and
The analysis examines the effects of mini-
the unemployment ratios. Equations using these
mum wage provisions on unemployment and
two as dependent variables (and with the same
employment patterns of young people. Never-
set of independent variables) then can be sim-
theless, adjustments by employers to changes in
ply added to obtain the corresponding equations
their labor costs may take place in one or more
with labor force participation rates as the de-
of a variety of ways, i.e., price changes, profit
pendent variable. This has been done, and the
changes, and productivity changes. A compre-
results are presented later in this chapter.
hensive study of the subject might well give
The separate categories of white and other
more insights into the adjustment mechanisms
races, or of male and female, used for the analy-
involved.
sis need no explicit justification. The age cate-
Efforts will first be directed at the study of
gories of 16-17 and 18-19 year olds are consi-
teenage unemployment ratios in the following
dered to be significant because of the different
categories:
influences to which these groups are subject.
Male
Female
The younger group might be expected, other
White All Other White All Other
things equal, to be lower paid, and hence their
16-17 year olds
X
X
employment more influenced by the minimum
18-19 year olds
X
X
wage. This group most generally need work
Subsequently the same equations for all 16-19
permits for jobs, and may be subject to other
year olds combined will be examined.
work-connected restrictions or requirements as
Various studies have shown that young peo-
well. In particular, they still heavily represent
ple have a high labor force elasticity to changes
those in secondary schools in most months of
in employment. Roughly, when employment
the year. A large proportion of the 18-19 year
rises by 10, unemployment falls by only six;
olds are out of school, but the boys are subject
this is an indication that additional people are
to draft call.
drawn into the ranks of the employed from out
Since both age groups are influenced strongly
of the labor force. These magnitudes are about
by the school year, the seasonal patterns of em-
the same for both young men and women. Con-
ployment and unemployment between the sum-
versely, when employment falls by 10, unem-
mer and winter months are very marked. The
ployment rises by six, SO that presumably four
question is whether the use of seasonally ad-
people leave the labor force. Consequently, the
justed data for these groups for all periods of
unemployment rates (ratio of unemployment to
the year in the same regression equation may
labor force) will exhibit behavior combining the
affect the analysis in some detrimental fashion.
effects of both numerator and denominator.
The increasing rates of school enrollment over
Equations using these rates as dependent varia-
the years have an effect on the seasonal pat-
bles therefore, will be somewhat more difficult to
terns of labor force activity. Since our methods
interpret. In place of these rates, as indicated
of seasonal adjustment allow for changing pat-
earlier, unemployment ratios (unemployment to
terns of seasonality, we may perhaps be remov-
civilian noninstitutional population) are used.
ing, via seasonal adjustment, some aspects of
Since the population estimates in the denomina-
labor force behavior which should have been re-
tor change rather slowly and exogenously, the
tained. This suggests that some other labor
behavior of the ratio will reflect more clearly
force models be examined separately for the in-
the behavior of the numerator. These ratios
school and out-of-school youth, and possibly
lend themselves more readily to projection work
with not-seasonally adjusted data. Limited in-
as well. Also, the implication for unemployment
vestigation of this (not reported on here) does
rates can be and is derived.
not appear to yield any new insights, however.
Two other ratios for the relevant age-sex-
Two other approaches have not been exam-
color groups are used as dependent variables.
ined because of time and staff limitations. One
These are the employment and labor force par-
of these uses as the dependent variable the ratio
36
of teenage white to all other unemployment, by
UNEMPLOYMENT RATE OF ADULT MALES. Some
sex and age possibly or the ratios of these to
measure of the level of economic activity must
adult unemployment, as the dependent variable.
be included in these equations since youth em-
Another would incorporate some measure of the
ployment and unemployment patterns are influ-
duration of teenage unemployment to pick up
enced by the general course of economic activ-
an additional dimension.
ity. As will be seen below, this variable has the
most important single influence on the employ-
Independent variables
ment and unemployment ratios of the young.
The unemployment rate of adult males does not
ARMED FORCES. This is the ratio of male Armed
have the complex characteristics of that for
Forces 16-19 years old to the population for the
young people discussed earlier since the labor
same category. This variable is present only in
force denominator (the adult male labor force)
the equations for males, because it is assume
is relatively insensitive to changing economic
that minimal substitution of young women for
conditions.
young men takes place in the labor market.
However, the withdrawal of some young men
POPULATION RATIOS. The regression equations
from civilian life into military service presum-
include measures of both relative demand and
ably has some effect on prospects for those who
relative supply. The ratio of the particular age-
remain. The variable is unlikely to be successful
sex-color population the adult population for
in reflecting the negative effect on employment
the same sex is a measure of relative supply.
opportunities for young men waiting to be
During the latter part of the postwar period
called by the draft. It is also deficient in not
these variables manifested upward trends re-
reflecting the current number of 16-19 year
flecting the early postwar "baby boom." If at
olds in the Armed Forces at all times, since the
that time the available jobs for young people
variable is updated at intervals with no back-
did not expand rapidly enough, an associated
ward revisions. The Armed Forces data thereby
increase in youth unemployment would be ex-
contain some short term time movements which
pected. On the other hand, the result might also
are essentially statistical artifacts.
be an increase in the "discouragement" effect
with more youth remaining out of the labor
AGRICULTURAL EMPLOYMENT. Two variables
force. Unfortunately, population measures for
were constructed, one for white and the other
the young, in particular Negroes, are somewhat
for all other youth. They are ratios of agricul-
deficient as described in the appendix on char-
tural employment of the 16-19 year olds to the
acteristics of the labor force data, and therefore
relevant population totals. The purpose of this
may not exercise their proper role in these
variable is to reflect the gradual shift from
equations.
rural to urban activities. In the rural areas,
young people may be either unpaid or paid fam-
SCHOOL ENROLLMENT RATIOS. This factor is an-
ily workers, but the nature of the labor market
other supply-oriented variable although varia-
is quite different from that in urban areas
tions in it reflect variations in demand as well.
where the personal element in the worker-em-
Eight measures of the variable are used, one for
ployer relationship is less. Interrelationship
each age-sex-color category. The ratios are
with other factors, such as school attendance,
available for October of each year; these esti-
and distance from home to work, are also pre-
mates are used for four successive quarters
sent. Since the data for youth agricultural em-
starting with the last calendar quarter of each
year. Consequently, they do not reflect enroll-
ployment are quite scarce no further detailed
ment changes during the school year. In addi-
categories by sex or age were used because of
tion, these data, based on a single calendar
their substantial irregular movement. Data for
month are subject to somewhat higher sampling
Negro⁵ youth were so irregular in fact that only
errors than the quarterly or annual data used
annual averages were used.
elsewhere.
FOR
37
The equations
Table 2.2. Employment equations: Negroes and
other races
The results for the 24 regression equations
Male 16-17
Male 18-19
Female 16-17
Female 1
9
are presented in tables 2.1 to 2.7. The symbols
Variable
in the tables are identified as follows:
Coef-
T
Coef-
T
Coef-
T
Coef-
T
ficient
ficient
ficient
ficient
E = civilian employment ratio to population for
the indicated category
Dependent
E
U = unemployment ratio to population for the
Independent:
indicated category
Constant
16.719
53.831
11.840
-17.630
1
AF
.088
.7
-.013
.1
L = civilian labor force participation rate for the
A (W)
1.695
2.4
1.473
2.4
.967
2.0
.953
1.5
indicate category
UR
-1.616
2.2
-.750
1.1
-.495
1.0
-1.454
2.3
P
-28.769
1.0
-3.372
.1
-12.560
.6
87.203
1.8
AF = ratio of male Armed Forces, 16-19 years old,
S
.339
1.6
-.422
3.6
.051
.6
-.038
.3
WW
-.102
.1
4.515
1.9
.829
.7
.002
0
to male population, 16-19
D₁
3.159
1.4
3.266
1.2
.816
.6
-7.757
2.8
A (W) = agricultural employment ratio to popula-
D:
8.723
3.1
4.247
.9
4.887
2.9
-10.613
2.3
D₃
5.675
2.2
-1.668
.3
4.684
2.9
-8.798
1.6
tion, white, 16-19 year old
D
5.310
1.9
.218
0
4.668
2.7
-9.829
1.7
A (NW) = agricultural employment ratio to popu-
R2
.783
.690
.660
.252
lation, Negro, 16-19 year old
S.E
2.656
3.586
1.905
3.134
0
5.651
6.373
3.234
3.588
UR = adult male unemployment rate
D-W
1.724
1.106
1.346
1.140
P = ratio of population of indicated category to
corresponding adult (20 years and older)
population of same sex
S = school enrollment rate for indicated category
As noted earlier, the labor force equations
WW = minimum wage variable
may be derived as the simple sum of the corre-
D₁ = variable reflecting factors peculiar to the year
sponding employment and unemployment equa-
1965
tions.
D₂ = variable reflecting factors peculiar to the
The statistical significance is evaluated more
year 1966
D₃ = variable reflecting factors peculiar to the year
easily for the unemployment equations than for
1967
the employment equations. In the former set,
D. = variable reflecting factors peculiar to the year
the Durbin-Watson coefficients indicate the
1968
presence of little, if any, positive serial correla-
R² = coefficient of multiple determination adjusted
for degree of freedom
tion in the residuals. However, still present are
S.E. = standard error of estimate of the dependent
the problems of errors in the independent varia-
variable
bles and of declining sampling errors over the
o = standard deviation of the dependent variable
D-W = Durbin-Watson coefficient
years, which affect all of the findings to some
T = ratio of a coefficient to its standard error
Table 2.1. Employment equations: white
Table 2.3. Unemployment equations: white
Male 16-17
Male 18-19
Female 16-17
Female 18-19
Male 16-17
Male 18-19
Female 16-17
Female 18-19
Variable
Variable
Coef-
T
Coef-
T
Coef-
T
Coef-
T
Coef-
T
Coef-
T
Coef-
T
Coef-
T
ficient
ficient
ficient
ficient
ficient
ficient
ficient
ficient
Dependent
Dependent
E
U
Independent:
Independent:
Constant
92.276
78.764
56.429
27.780
Constant
2.358
14.489
4.120
10.550
AF
.197
3.2
.060
.6
AF
.015
.5
- .019
.4
A(W)
-.458
.5
.655
is
.882
8
2.380
3.3
A (W)
.227
.5
.903
2.8
-.317
7
-1.195
3.7
UR
-1.513
4.9
-2.250
8.3
-1.423
4.8
-.479
1.8
UR
.458
3.2
1.290
10.4
.170
1.4
.336
2.8
P
-1.037
.7
-1.057
.6
-3.855
2.2
2.535
1.5
P
1.093
1.6
-2.050
2.4
.445
.8
.552
.8
S
-.443
1.4
.102
.6
-.048
.2
-.030
.2
S
-.058
.4
.017
.2
.009
.1
.060
1.0
WW
-2.782
2.9
-2.012
2.0
-2.208
2.3
.147
.2
WW
.305
.7
.042
.1
.105
.3
.525
1.3
D₁
2.051
2.1
-.518
.4
- 411
.4
-1.227
1.0
D
-.001
0
.761
1.3
.480
1.2
-.035
.1
D,
3.999
3.2
.359
.2
- .761
.9
1.705
1.0
D
-.334
.6
.819
.9
.345
.1
-1.391
1.7
D,
6.749
5.9
2.025
1.4
3.743
3.3
1.740
1.2
D
-.174
.3
.513
8
.197
.4
718
1.1
D
8.080
6.2
2.688
1.9
4.617
3.7
2.432
1.7
D
-.539
is
.000
0
.156
.3
-.130
.2
R
.817
.795
.653
.563
R:
.332
.888
.284
.667
S.E
1.371
1.318
1.359
1.332
S.E
.631
.606
.575
.619
0
3.168
2.884
2.285
2.070
0.
.764
1.792
.673
1.055
D-W
.960
1.480
.967
1.370
D-W
1.671
1.979
1.880
1.676
FORD
38
Table 2.4.
Unemployment equations: Negroes and
Table 2.6. Labor force equations: Negroes and other races
other races
Male 16-17
Male 18-19
Female 16-17
Female 18-19
Male 16-17
Variable
Male 18-19
Female 16-17
Female 18-19
Variable
Coefficient
Coefficient
Coefficient
Coefficient
Coef-
T
Coef-
T
Coef-
T
Coef-
T
ficient
ficient
ficient
ficient
Dependent
E
Dependent
U
Independent:
Constant
48.976
87.258
19.670
5.911
Independent:
AF
.233
-.128
Constant
32.257
33.428
7.830
23.541
A (NW)
.371
.613
.649
.213
AF
.145
1.8
UR
-.115
.7
-1.156
.332
-.217
-1.084
A (NW)
-1.324
P
3.1
-.860
2.0
-.318
1.0
-53.467
-.740
2.0
-28.734
-9.869
75.754
UR
.460
1.0
S
1.082
2.2
.430
.278
.8
.370
1.1
-.131
- .011
-.144
P
-24.698
1.4
WW
-25.362
.9
2.691
-3.425
.2
-11.449
.129
.4
1.940
1.120
S
.091
.7
.291
3.6
D,
-.062
1.0
5.240
-.106
1.5
1.037
1.549
10.201
WW
-3.323
3.0
-4.386
2.7
D₂
1.111
8.626
1.3
1.118
is
1.269
6.000
-11.661
D,
2.081
1.5
D3
-2.229
1.2
.7
10.809
.733
-2.444
1.6
1.497
3.213
-9.889
D,
-.097
D.
.1
-2.978
.9
1.113
1.0
9.255
-1.048
.4
3.199
3.090
-12.928
D,
5.134
3.2
3.165
.8
-1.471
1.3
-1.091
.4
D.
3.945
2.2
2.981
.7
-1.578
1.3
-3.099
is
R2
.493
.569
.511
.493
S.E
1.634
2.449
1.312
1.740
0
2.272
3.692
1.856
2.420
D-W
1.845
1.351
1.674
ployment. Thus, increases in the minimum wage
2.205
variable should reduce employment among teen-
agers; four of the eight coefficients have the
extent. In the case of the employment equa-
expected negative sign. In the same way, in-
tions, the Durbin-Watson coefficients generally
creases in the minimum wage are expected to
indicate the presence of some positive serial
increase unemployment of teenagers. The re-
correlation, whose nature, discussed in the ap-
sults are that only 3 of 8 coefficients have the
pendix on the characteristics of labor force
expected positive sign. There may be some indi-
data, is different from that for which modified
cation for the male 16-17 year olds to behave as
estimation techniques have been developed.
expected; 3 of the 4 signs are correct.
Consequently, the significance of the coefficients
2. The wrong signs in the employment equa-
in these equations cannot be readily assessed,
tions are not amenable to easy explanation, al-
but is probably overstated.
though possibly relevant variables have been
The results for the coefficients of the mini-
omitted, the relationships improperly specified,
mum wage variable are summarized below:
or deficiencies in the basic data have not been
overcome. However, some possibility exists that
1. Only 7 of the 16 coefficients have the sign
adverse employment effects for 16-17 year olds
usually expected under the hypothesis that the
may act to improve employment opportunities
minimum wage affects employment and unem-
for 18-19 year olds. This may help explain the
large positive coefficient for all other males
18-19, but the statistical significance of the lat-
Table 2.5. Labor force equations: white
ter is unknown. The other positive coefficients
Male 16-17
Male 18-19
Female 16-17
Female 18-19
Variables
Table 2.7. Coefficient of minimum wage on variables in
Coefficient
Coefficient
Coefficient
Coefficient
employment and unemployment ratio equation
Dependent
1
Employment equation
Unemployment equation
Category
Age
Independent:
group
Constant
94.634
93.253
60.549
38.340
Coefficient
T-ratio
Coefficient
T-ratio
AF
.212
.041
A
-.231
-.248
-1.199
1.185
UR
-1.055
-.960
-1.253
-.143
White males
16-17
-2.782
2.9
.305
.7
P
.056
-3.107
-3.410
3.087
18-19
-2.012
2.0
.042
.1
S
-.501
-.085
-.057
-.090
White females
16 17
-2.208
2.3
-.105
.3
WW
-2.477
-2.054
-2.313
-.378
18 19
.147
.2
-.525
1.3
D
2.050
.243
.891
-1.262
All other males
16 17
-.102
.1
-3.323
3.0
D,
3.665
1.178
-1.106
.314
18 19
4.515
1.9
-4.386
2.7
D,
6.575
2.538
3.546
1.022
All other females
16-17
.829
.7
1.111
1.3
D
7.541
2.688
4.773
2.302
18-19
.002
0
1.118
is
39
are clearly insignificant. With respect to unem-
creased by 25 percent for all groups. For the
ployment, the situation is actually somewhat
third quarter of 1969, the value of WW equals
more complex.
3.78. An increase of 25 percent in this figure
would yield an added 0.945. Multiplying this in-
3. If employment opportunities decrease, does
crement by the employment ratio coefficients of
this necessarily result in an increase in
WW in the preceding table 2.7 and weighting
unemployment? Our labor force data indicate
the eight categories by their average 1968 civil-
that a considerable number of teenagers want a
ian noninstitutional population values, the esti-
job but have not looked for one, and are there-
mated drop is 182,000 in teenage employment.
fore counted as not in the labor force. Conceiva-
The same procedure applied to the unemploy-
bly a decrease in job opportunities could be as-
ment ratio equations yields a net decrease of
sociated not with an increase in measured un-
34,000 for all teenagers. The two changes yield
employment, but with an increase in "potential"
a net decrease in the teenage labor force of
unemployment, for which no count exists.6
216,000, compared with a total teenage civilian
4. The coefficients of the minimum wage vari-
labor force in 1968 of 6,619,000, or a little over
able in the eight labor force equations also are
3 percent.
useful:
As already indicated, the labor force findings
are contrary to simple economic theory. If the
Category
White
All other
Male, 16-17
-2.477
-3.425
minimum wage rises and if this causes an in-
Male, 18-19
-2.054
.129
crease in wages offered to youth economic
Female, 16-17
-2.313
1.940
Female, 18-19
1.120
theory says that the supply of teenage labor
- .378
should also rise, since wages are more attrac-
Under consideration is whether an increase
tive. If, by supply of labor is meant those who
in minimum wage contracts labor force activ-
are working or who want a job, this may well
ity, either working or looking for work. The
be the case. On the other hand, if supply of
evidence is inconsistent with basic economic
labor is interpreted as those who are counted as
theory: all of the white groups have a negative
employed or unemployed in the labor force sur-
coefficient, plus the all other males, 16-17. The
vey, the problem is again one of measurement.
coefficients for the remaining three groups are
The finding that an increase in the minimum
positive, influenced largely. by positive coeffi-
wage variable shrinks the measured labor force
cients in the employment equations. The equa-
is not inconsistent with the hypothesis that it
tions for the all other categories are subject to
also increases the potential labor force. Since
difficulties of interpretation in general. The
our results are single equation results, esti-
cause may be partly the thin data base, and
mates of the coefficients may be subject to bias,
partly the lack of a good model of Negro behav-
because certain other relationships are excluded
ior. Inquiries are necessary about the effect of
from consideration. This point is discussed fur-
minimum wages on employment. The answer
ther at the end of this chapter.
must consider the complexity of labor force be-
A cross-section analysis of six groups of male
havior, particularly with respect to "potential"
teenagers, using area data from the 1960
unemployment.
Census, came up with a similar finding: when
5. These equations contain implications for
labor force participation rates of male teenag-
changes in minimum wage rates. Since the im-
ers were correlated against their weekly earn-
plications (in terms of the coefficients of the
ings (the use of hourly earnings was rejected
minimum wage variable) are not very reliable
because of data problems) in the presence of
statistically, they should be considered with
other variables, negative coeflicients were found
great reservations. The estimates in the follow-
in all six equations. In other words, the areas
ing paragraph are subject to these reservations
with the higher teenage earnings had lower
and can only be considered as reasonable, but
teenage labor force participation rates. Since
not as definitely established.
this result was somewhat disconcerting,
Suppose that minimum wage rates were in-
Bowen and Finegan examined it at some length.
40
They eventually concluded that the source of
of eight labor force participation rates are re-
the apparent contradiction with economic
duced when enrollment rates rise.
theory was in the use of the measured labor
The Armed Forces variable seems to play a
force as the labor supply, a conclusion which is
role only in the case of employment of white
consistent with the results and material pre-
males, 16-17 years old. The coefficient here is
sented in this chapter.
positive, suggesting that increasing the propor-
Some additional results are given on the ef-
tion of 16-19 years olds in the Armed Forces
fects of an increase in minimum wages on the
may give the 16-17 year olds a competitive
unemployment rates. As already noted, only
advantage compared with the 18-19 year olds.
three of the eight unemployment ratios rise if
The agricultural employment variable has six
the minimum wage is increased. On the other
out of eight positive coefficients in the employ-
hand, five of the eight unemployment rates rise
ment equations, and seven out of eight negative
under the same conditions. Specifically, under
coefficients in the unemployment equations.
the assumption of a 25-percent increase in the
Since agricultural employment as a percent of
minimum wage, the following is found:
population has been falling, this suggest that
along with the movement from rural to urban
Changes in unemployment rates
activities has come a decline in the employment
Age-sex
White
All other
Males 16-17
+1.2
-6.0
ratios and an increase in the unemployment
Males 18-19
+ .2
-6.6
ratios. On balance, the white labor force par-
Females 16-17
+ .6
+1.8
Females 18-19
- .9
+1.7
ticipation rates have fallen, except for white
females 18-19 years old, while labor force par-
The net effect for all eight groups is a de-
ticipation rates for all others have risen slight-
crease in the unemployment rate of 0.1 percen-
ly. The movement from employment to unem-
tage points, or essentially no change. No de-
ployment is not inconsistent with the expecta-
tailed analysis by group is attempted to avoid
tions.
reading significance into results which may in
7. A separate discussion is needed for the
some instances not support this effort; never-
four dummy variables for the years 1965, 1966,
theless, increases in unemployment rates may
1967, and 1968. Initially the use of single dum-
be consistent with decreases in the number of
mies for the 2-year period, 1967-68, in these
people classified as unemployed.
equations was explored, on the grounds that the
6. While the other variables in these equa-
change in the labor force questionnaire in 1967
might cause the employment and unemployment
tions are not of primary concern they were in-
data to exhibit somewhat different patterns
cluded on a priori grounds that they influenced
than in earlier years. The coefficients of these
the labor force behavior of teenagers, SO exami-
dummies, particularly for some of the employ-
nation of their performance is worthwhile.
ment equations, indicated that something was
The population variable behaves fairly well
at work other than just a change in the ques-
in accord with expectations. If the population of
tionnaire. A comparison of results obtained
teenagers rises relative to the population of
during the year 1966 with the old and new ques-
adults, increasing difficulty in maintaining a
tionnaire confirmed this impression that other
given employment ratio for the younger group
influences were present.
may be expected. Six of the coefficients in the
The paper by Cohen* estimated that almost
eight employment equations support this prem-
400,000 young people, 16-21 years of age, were
ise. In five of the eight groups there is also an
covered by Federal Manpower Programs in
indication of a drop in the labor force participa-
1967 and would be counted as "employed"
tion rates. Overall, the effects are somewhat
under the definitions of the labor force ques-
mixed.
tionnaire. There is question, therefore, as to
The school enrollment rates play a generally
whether these youths should not have been
similar role. As enrollment rates rise, most em-
picked up in some way by the regression equa-
ployment and unemployment ratios fall. Seven
tions. Cohen estimated that the bulk of these
41
employed young people would have been unem-
The differences between these two independ-
ployed in the absence of these programs. Quant-
ent estimates are large, compared with those
ities of these magnitudes should clearly affect
for the employment effects. The estimates of the
the regression equations for the years since
unemployment effects from the regression equa-
1965. The four dummy variables were therefore
tions are consistent with the idea developed ear-
designed to try to measure the effects of these
lier that shifts in and out of employment are
manpower programs as well as any other influ-
associated with shifts in and out of unemploy-
ences present. Cohen does not consider the ef-
ment, and also in and out of the "not in labor
fects of other manpower programs, such as the
force" category. The Cohen estimates provide
Job Corps, whose enrollees are classified as
for no labor force adjustment mechanism of
being out of the labor force or any other influ-
this kind, as exhibited through our measure-
ence which also affect our estimates of the
ment procedures.
dummy variables.
The effects of these dummy variables are
The parallel between the finding in this study
measured in percentage points of the civilian
and for the minimum wage variable is of some
noninstitutional population. When they are
interest. Both the dummies and the minimum
multiplied by the corresponding population fig-
wage variable pick up employment effects, but
ures and then aggregated across age-sex-color
no particular unemployment effects. These find-
groups, we get the following results:
ings plus the evidence presented throughout
Category
1965
1966
1967
1968
this chapter support the hypothesis that a labor
(Numbers in thousands)
force adjustment mechanism is at work which
Employment effects of dummy
variable (16-19 year olds)
3
240
426
544
tends to limit the impact on unemployment lev-
Cohen estimates of Manpower
els of various factors. However, the employ-
Program effects
(16-21 year olds)
143
309
372
(1)
ment effects are associated with low Durbin-
1 Not available.
Watson coefficients, affecting their significance.
The bulk of those employed were in the
The danger in this as well as in other ana-
Neighborhood Youth Corps. James Tucker 9
lyses in passing subtly from speculation, proba-
shows that three times as many 16-17 year olds
bility, and tentative evaluation to a discussion
were enrolled in NYC as 18-19 year olds. For
the 3 years combined, 1966-68, the employment
of apparently objective and uncontested facts.
increments in the dummy variables show a five-
The material presented in this chapter has
to-one ratio between the 16-17 and 18-19 year
many tentative aspects, and more than the usual
olds, a not unreasonable correspondence.
number of caveats are discussed. The sta-
Despite the fact that some individual dum-
tistical result contain many plausible elements.
mies (seven out of 32) had negative signs, the
However, some objective facts are present.
aggregate estimates for all teenagers, are not
FLSA changes took effect in February 1967 and
much different from the independent estimates
in February 1968. At the same time, Federal
of Cohen, although one must make allowances
Manpower Programs were operating in high
for his broader age coverage (16-21 years).
gear. Clearly the two phenomena were working
A similar comparison between Cohen's esti-
somewhat at odds, with the increase in mini-
mates and those based on the regression equa-
mum wage rate and coverage operating, to some
tion dummies may be made for unemployment
extent, to depress job opportunities for the
effects. This comparison is contained in the tab-
ulation:
young, while the manpower programs were
working to increase them. Since the manpower
Category
1965
1966
1967
1968
(Numbers in thousands)
programs were quite substantial and covered
Unemployment effects of dummy
variable (16-19 year olds)
-1
-50
5
-17
hundreds of thousands of youngsters, if the an-
Cohen estimates of Manpower
alyses had ignored these programs, they would
Program effects
(16-21 year olds)
-97
-191
-237
(1)
have improperly underestimated the influence
1 Not available.
of the FLSA changes.
42
8. In the preceding analysis eight separate
from 3.0 to 2.0 than it was from 4.0 to 3.0, and
age-sex-color groups were analyzed in order to
SO on. As the rate falls, it approaches some fric-
detect any differential patterns among them,
tional limit with increasing difficulty, and labor
with some limited success. In the process of
market pressures are increasingly transmitted
fragmenting the data, the Bureau ran the risk
to other groups with higher proportions of mar-
of increased errors in the variables, and de-
ginal workers, such as women and teenagers.
creased significance of results. Also effectively
The equations are expressed in linear form.
ignored were any substitution effects among
Can they be transformed so that they will rec-
these groups. Some added perspectives can be
ognize this nonlinearity effect in very tight
attained by fitting the same equations to all
labor market conditions?
eight groups combined. This has been done both
The simplest way is to transform the equa-
with and without the four dummy variables,
tions given earlier into logarithmic form, ex-
with the results indicated in table 2.8.
cept for the dummy variables. This has been
done, and the results have been converted into
These equations again indicate a negative co-
employment and unemployment effects with the
efficient for the minimum wage variable in the
results shown in table 2.9.
employment coefficient when the dummies are
The logarithmic results are taken as better
included, but a positive coefficient when the
representations of the manpower program ef-
dummies are excluded. The problem is clearly
fects. These estimates may be compared with
pinpointed in the patterns of the variables in
those derived earlier for the eight separate cat-
the last several years, particularly 1967-68. As
egories of teenagers. The latter estimates have
indicated earlier, a reasonable assumption is
that positive employment effects are being
picked up some of the presumed nonlinearity
picked up from the manpower programs in
through the separate equations and are thus
these years. The employment effects as meas-
closer to those based on the logarithmic form.
ured through this single equation are greater
The peculiar decline in the unemployment ef-
than from the eight separate equations. Another
fects for 1967-68 undoubtedly reflect the effects
hypothesis must be considered as well with re-
of the change in the questionnaire in 1967
spect to the single equation.
which reduced measured teenage unemploy-
The adult male unemployment rate for the
ment.
last 4 years were: 1965, 3.2; 1966, 2.5; 1967,
These summary equations are not otherwise
2.3; 1968, 2.2.
analyzed here, since they are generally consist-
As labor market conditions tighten, the adult
ent with the equations discussed earlier. The
unemployment rate falls. It is reasonable to as-
unemployment equations have negative coeffi-
sume that it is harder to bring this rate down
cients for the minimum wage variable in both
the linear and logarithmic forms, whether or
not the dummy variables are included.
Table 2.8. Equations for all 16-19 year olds combined
Table 2.9. Nonlinear employment and unemployment
Employment ratio equations
Unemployment ratio equations
effects
Variable
Coef-
T.
Coef-
T.
Coef-
T-
Coef-
T.
[Numbers in thousands]
ficient
ratio
ficient
ratio
ficient
ratio
ficient
ratio
Effects
1965
1966
1967
1968
Constant
87.084
51.690
.728
1.415
AF
.096
1.4
.110
1.4
.056
1.8
.028
1.0
A
-.530
.6
1.357
1.2
.312
.7
-.362
is
Employment:
UR
-1.303
5.6
-1.303
4.3
.557
5.4
.622
6.1
Linear equation
+13
+331
+579
+744
P
.359
.3
2.051
1.5
.702
1.3
.013
.03
Logarithmic equation
+5
+311
+420
+457
S
-.652
3.8
.578
3.3
.028
.4
.070
1.2
Difference reflecting labor market tight-
WW
1.654
2.3
.677
1.1
.424
1.3
.188
.9
ening
+8
+20
+159
+287
D
.102
.1
.514
1.4
Unemployment:
D:
2.431
2.2
-1.226
2.5
Linear equation
-66
-167
-75
-34
D₁
4.298
4.9
.555
1.4
Logarithmic equation
-31
-88
-32
-6
D.
5.427
5.9
.392
1.0
Difference reflecting labor market tight-
R:
.856
.730
.739
.723
ening
-35
-79
--43
-28
43
Annual data, 1948-68 10
dustry division weighted by the proportion of
workers in the industry covered by the applica-
An analysis of annual data for 1948 to 1968
ble minimums and the proportion of all teenag-
was conducted separately from the analysis of
ers employed in that industry division (see
quarterly data for 1954 to 1968. Data for var-
table 1.6 in chapter 1). An alternative proce-
ious age-sex-color groups among teenagers are
dure was to use two variables: one a measure of
generally not available for the longer time pe-
the basic minimum wage as a percent of aver-
riod; hence, the analysis of annual data is lim-
age hourly earnings in the private nonfarm
ited in that it deals only with the 16 to 19-year
economy (M/AHE) ; and the other, the percent
age group as a whole.
of nonsupervisory workers in the private non-
The annual data however, do, allow determi-
farm economy covered by the Federal minimum
nation of whether the relationships found in
wage law. The relationship between the two dif-
the shorter time period hold true for the post-
ferent measures of minimum wage effect is, of
war era as a whole. Second, since no attempt
course, quite strong .978).
was made to use precisely the same variables in
Unlike the analysis of quarterly data, the
both the analysis of quarterly and of annual
ratio of agriculture employment to population
data, some evaluation could be made of the ef-
was not used, nor were dummy variables used
fects of slightly different measures of a phe-
for particular years.
nomenon or the exclusion or inclusion of differ-
ent variables.
THE EQUATIONS. The results of regressing the
included independent variables on the teenage
THE VARIABLES. Regressions were run using as
ratios and the unemployment rate for the pe-
alternative, dependent variables the employ-
riod 1948 to 1968 are given in table 2.10. Only
ment, unemployment, and labor force ratios
(i.e., dividing by population) and also the un-
the adult unemployment rate clearly bears the
employment rates (dividing by labor force) for
expected relationships with the dependent var-
all 16-19 year olds.
iables; that is, the employment and unemploy-
The independent variables used differed from
ment of teenagers is affected by general busi-
those in the analysis of quarterly data primar-
ness conditions as measured by the adult unem-
ily in detail, rather than concept. Among the
ployment rate.
independent variables used (with differences
The minimum wage variables, as in the anal-
from the analysis of quarterly data given in
ysis of quarterly data, do not fare especially
parenthesis) were:
well. The single measure of minimum wage
U. = unemployment rate of persons age 25 and
level and coverage (WW) has the expected sign
over (quarterly: adult male unemployment
rate)
P₁₆₂₅ = ratio of teenage population to that of adults
age 25 and over (quarterly: adults 20 years
Table 2.10. Teenage regressions annual data, 1948-68
and over)
Af = ratio of armed forces under age 20 to male
De-
M/
Cover-
pendent
R:
Constant
U
population age 18 to 19 (quarterly: male armed
P₁₈:
Af
S
AHE
age
WW
variable
forces 16-19 years old, to male population
16-19 years old)
L/P
.839
57.3
-.36
1.03
.18
-.49
.08
.06
(1.1)
(1.7)
S = ratio of school enrollment to population, 16-19
(1.8)
(5.1)
(1.5)
(1.0)
E/P
.908
62.0
-1.41
.44
.14
-.49
.06
.08
years old (quarterly: same for appropriate
(4.3)
(0.7)
(1.4)
(4.9)
(1.0)
(1.1)
U/P
.928
-4.5
1.04
.59
.04
-.004
.02
-.01
age category)
(10.5)
(3.1)
(1.2)
(0.1)
(1.4)
(0.7)
U/L
.940
-9.9
2.17
.83
.001
.13
.02
-.05
(9.6)
(1.9)
(0.01)
(1.9)
(0.6)
(1.0)
In addition, the analysis of annual data used
L/P
.841
64.6
-.38
.68
.14
-.45
.12
(1.2)
(1.6)
(1.7)
(6.2)
two different measures of minimum wage ef-
(1.9)
E/P
.915
68.2
-1.40
.27
.13
-.47
.12
(4.4)
(0.6)
(1.4)
fects. The first-labeled WW-as in the analy-
(6.5)
(1.8)
U/P
.924
-3.7
1.01
.40
.02
.03
.002
(9.9)
(3.0)
(0.6)
sis of quarterly data, was the minimum wage as
(1.1)
(0.1)
U/L
.941
-10.3
2.11
.56
- .03
.18
-.03
(9.5)
(1.9)
(0.5)
(3.5)
a percent of average hourly earnings in the in-
(0.7)
44
Table 2.11. Regressions on teenage unemployment rate
and 8), certain striking changes occur. The cov-
annual data, 1948-68
erage variable is no longer significant and, in
fact, reverses signs. The joint effect of mini-
Equa-
tion
R'
Con-
U
P₁₆ 23
Af
S
M/
Cover-
mum wage level and coverage is drastically re-
num-
stant
AHE
age
WW
ber
duced and no longer statistically significant.
This certainly raises the legitimate question
1
.547
-1.6
1.96
.15
(4.7)
(2.3)
of whether or not the population and the cover-
2
.702
-15.1
2.55
.08
.22
(6.6)
(1.5)
(3.2)
age factors should be included in the same re-
3
.925
-9.4
2.25
1.29
.08
-.06
(11.5)
(7.2)
(3.0)
(1.1)
gression. There are two purely statistical tests
4
.895
-8.9
2.36
1.24
(11.5)
(9.1)
of relative unimportance. When both variables
5
.929
-13.3
2.38
1.53
.08
.08
-.06
(11.4)
(6.4)
(1.4)
(3.0)
(1.3)
are included in the same regression (equation
6
.940
-9.9
2.17
.83
.0007
.13
.02
-.05
(9.6)
(1.9)
(0.01)
(1.9)
(0.6)
(1.0)
3), the population variable clearly dominates
7
.758
-2.3
2.55
.25
the result. If as an alternative test, comparison
(7.7)
(5.1)
8
.898
-8.6
2.45
1.05
.06
is made between the regressions using the adult
(11.4)
(5.1)
(1.2)
9
.899
-12.5
2.56
1.26
.08
.05
unemployment rate and the minimum wage var-
(10.7)
(4.4)
(1.1)
(1.1)
10
.941
-10.3
2.11
.56
-.03
.18
-.03
iables-but not population- (equations 2 and
(9.5)
(1.9)
(0.5)
(3.5)
(0.7)
7) and the regression using the adult unemploy-
ment rate and the population variable-but not
only in the regression on the unemployment
minimum wages-(equation 4), the latter does
ratio ( U ). In no case is it statistically signifi-
a much better job of explaining variation in the
cant. In the alternative measures of minimum
teenage unemployment rate.
wage effect, the measure of the relative level of
On statistical grounds, therefore, there is lit-
the minimum wage (M/AHE) has the correct
tle reason to exclude the population variable in
sign in the case of the regression on unemploy-
deference to the minimum wage coverage fac-
ment rates and ratio, but is not statistically sig-
tor. While this may seem to downgrade the im-
nificant. The measure of coverage has the
portance of minimum wage coverage, it rather
wrong sign and, in each case, is not significant.
reflects the fact that only two major changes in
Some further understanding of these result
minimum wage coverage have been made since
can be seen in the additional regressions on the
the law was originally passed. This limited ex-
teenage unemployment rate-some omitting
perience is too meager to adequately separate
certain of the variables in the first set of regres-
out the effects of coverage changes from other
sions-presented in table 2.11. A study which
developments, especially changes that have oc-
would include only the adult unemployment rate
curred in the teenage population.
and the relative level of the minimum wage
The addition of a school enrollment variable
(M/AHE) would find, as in equation 1, that
(equations 6 and 10) materially reduces the
both are significant variables. However, in com-
level and significance of the minimum wage
paring equations 1 and 2, the fit of the regres-
level measure (M/AHE) and causes the joint
sion is materially improved by adding a mea-
sure of coverage. (The variable WW in equa-
effect of level and coverage (WW) to have the
tion 7 makes the results of that equation most
wrong sign. Changes in the regression coeffi-
nearly comparable to equation 2.) Not only is
cients of the other independent variables in
the fit of the equation worse when coverage is
those equations indicate that multicollinearity
omitted, but there is good reason to believe that
within the independent variable set compounds
the omission of a measure of coverage brings
problems of appropriately separating out the
about an overstatement of the effect of the rela-
effects of each independent variable.
tive level of the minimum wage. The size of the
regression coefficient on M/AHE is cut in half
Conclusions
when a coverage variable is added.
When the relative size of the teenage popula-
The most important-and at the same time
tion is added to the regressions (equations 3
discouraging-conclusion to emerge from avail-
BERALD
45
able analyses is that they do not permit confi-
coverage and the growth in the relative size of
dent conclusions about the effect of minimum
the teenage population prevent any firm state-
wage laws upon the employment experience of
ment.
teenagers.
There is some basis for the inference that the
Apparently any measure of the effects of
affect of Federal manpower programs and the
minimum wage laws upon teenage employment
Federal minimum wage have tended to offset
or unemployment is highly sensitive to the vari-
each other. The analysis of quarterly data indi-
ables included in the analysis, the measure of
cates that increases in employment attributed
minimum wage used, and the specification of
to the manpower programs have been offset to
the equation. When all variables that have a
some degree, by decreases in employment at-
legitimate claim to consideration are included,
tributed to the minimum wage. These results
the measures of minimum wage not infre-
were not found uniformly, however, among all
quently have the wrong sign and/or are not
sex-color-age groups within the teenage popula-
statistically significant at conventional levels.
tion.
This is generally true whether one looks at
Some evidence supports the hypothesis that
quarterly or annual data, at data for the entire
minimum wages have had greater adverse ef-
postwar period or more limited time segments,
fects upon 16 to 17 year olds than upon 18 to
or at data for teenagers as E whole, or teenag-
19 year olds. The regressions summarized in
ers compartmentalized into various sex-color-
table 2.7 indicate, for example, that the adverse
age groups.
effect on employment for white males 16 to 17
From all this, it should not be concluded that
years old is greater than for white males 18 to
minimum wage laws have no effect. Rather, the
19. The pattern of relative disadvantage holds
fact is that time series analysis does not permit
true in six of the eight cases. However, the
an adequate sepáration of various, nominally
quality of the evidence does not meet high
independent, factors affecting teenage employ-
standards.
ment problems.
In general, the most important factor ex-
While confident conclusions cannot be drawn,
plaining changes in teenage employment and
the data and equations do suggest certain addi-
tional, if highly tentative, conclusions:
unemployment has been general business condi-
- There is some basis for the conclusion that
tions as measured by the adult unemployment
the extensions of coverage of the minimum
rate. The role of other variables remains
I
wage law in the 1960's have had more of an
clouded by the interrelationships among them.
effect upon changes in the teenage unemploy-
Although hints of adverse effects of minimum
ment rate than changes in the relative level of
wages show up in available data, no firm state-
the minimum wage. The close historic relation-
ment can be made about the magnitude of such
ship that did exist between the changes in
effects.
FOOTNOTES
1 This section was written by Thomas W. Gavett,
Minorities (Wisconsin University Press, 1969) pp. 187-
Bureau of Labor Statistics.
205.
2 Yale Brozen, "The Effect of Statutory Minimum
Peter S. Barth, "The Minimum Wage and Teenage
Wage Increases on Teen-Age Employment," Journal of
Unemployment" (Ohio State University, 1969) un-
Law and Economics (April 1969), pp. 109-122. Arthur
published manuscript. James E. Easley and Robert M.
F. Burns, The Management of Prosperity (Columbia
Fearn, "Minimum Wages and Unemployment of Teen-
University Press, 1966), pp. 45-48. Hugh Folk, "The
agers" (North Carolina State University, 1969) un-
Problem of Youth Unemployment," in The Transition
published manuscript. Marvin Kosters and Finis Welch,
from School to Work (Princeton University, 1968), pp.
"The Distributional Incidence of Cyclical Fluctuations
76-107, Lester C. Thurow, "The Determinants of the
and the Minimum Wage" (Council of Economic Ad-
Occupational Distribution of Negroes," in Gerald
visors and NBER, 1970).
Somers, ed. Education and Training of Disadvantaged
Thomas G. Moore, "The Effect of Minimum Wages on
46
Employment" (Council of Economic Advisers). Gerald
4 Malcolm Cohen, "The Direct Effects of Federal Man-
W. Scully, "The Impact of Minimum Wages on the
power Programs in Reducing Unemployment," Journal
Unemployment Rates of Minority Group Labor" (Ohio
of Human Resources (Fall 1969), pp. 491-507.
University).
5 Includes other minorities.
Edward Kalachek, "Determinants of Teenage Em-
ployment," Journal of Human Resources (Winter 1968),
6 See the appendix on characteristics of the labor
pp. 3-21. Arnold Katz, "State Minimum Wage Laws
force for further discussion of these points.
and Male Teenage Workers, 1960." (University of
7 Bowen and Finegan, op. cit., p. 432.
Pittsburgh, 1970), a report prepared for the Bureau of
8 Op. cit.
Labor Statistics.
"The First 50,000 NYC Enrollees," Monthly Labor
3 Since Thurow used stepwise regression methods, the
sign of rejected variables is, of course, unknown. It
Review (December 1965), p. 1442.
should be noted that Thurow's investigation was not
10 This section was written by Thomas W. Gavett,
primarily concerned with the issue of minimum wages.
Bureau of Labor Statistics.
APPENDIX A
Characteristics of the Labor Force Data
The basic data in this analysis have been drawn from the labor force
survey conducted by the Bureau of the Census for the last 25 years. The
sample used for this survey is a rather complicated one; several features
are of interest in the present study.
1. Population estimates of various age-sex-color groups which are
used for control purposes in the estimating procedure are independently
made by aging the corresponding groups in the most recent decennial
census. They necessarily reflect imperfections in the Census data. The
most important of these, for purposes of this discussion, is the differential
undercount of the population, which most severely affects the population
estimates for young Negro males. At the time of the 1960 decennial
census, 15-19 year-old Negro males were estimated to be subject to an
undercount of 13 percent. Five years after the date of the census, the
15-19 year-olds are those who had been 10-14 years old at the time of
the census. This group is subject to an undercount of about 5 percent
in the census. The official population estimates for the 15-19 year-old
category therefore show a somewhat higher rate of increase during
intercensal years than was believed actually took place. The greatest
divergence between "actual" and measured rates of growth for this
group take place in the early years of the decade. From then on these
two rates of increase converge. Since all of the regression equations
contain variables based on the population estimates of the various cate-
gories of teenagers, these variables, particularly for Negro males, are
necessarily somewhat defective. Improved time series of population data
adjusted for these estimated undercounts are not yet available in the kind
of age detail needed.
FORD
47
2. Estimates of all of the variables in the regression equations are sub-
ject to errors, but the labor force data in particular are subject to known
amounts and kinds of sampling error. This has several implications for
estimation methods.
a. The quarterly unemployment ratios used for the dependent varia-
bles currently have sampling errors of about 10 percent for each of the
detailed eight age-sex-color groups we have examined. This is part of
the basic "noise" of the equations which exist separately from the errors
in fitting these equations. The employment ratios have sampling errors
about half this size.
b. Among the independent variables, similar sampling errors exist
in the adult male unemployment rate and the school enrollment rate. The
latter, which are based on data for a single month, have somewhat larger
sampling errors. The presence of errors in the independent variables
vitiates the results derived from the use of ordinary least squares in
fitting the equations. They do not affect the forecasting power of these
equations, since forecasting by use of error-free independent variables
cannot be done, but errors affect the tests of significance and bias the
estimates of the coefficients of the variables.
c. A particular problem exists with respect to the dependent varia-
bles, the employment and unemployment ratios. The labor force sample
has three-fourths of the households in common between adjacent months,
one-half in common between 2 months with 1 month between, and one-
fourth in common between 2 months with 2 months between them.
For individuals with stable characteristics, these patterns are reflected
in serial correlation of sampling errors with an unusual and hitherto un-
studied pattern, as far as regression estimation methods are concerned.
The employment ratios represent somewhat stable characteristics and
the equations with these variables we should have, therefore, low
Durbin-Watson coefficients. As already seen, this is the case for every one
of the eight groups. The unemployment ratios represent far less stable
characteristics and the Durbin-Watson coefficient for these equations
should fall within some respectable region (somewhere near 2.0), and
they do.
These characteristics of labor force data are worth noting since they
suggest that basic work needs to be done in developing appropriate estima-
tion techniques for equations which include them. The ordinary type of
correction for serial correlation is inappropriate in this study.
d. One final comment must be made about the nature of the sampling
errors, particularly in the dependent variables in the equations. Over the
postwar years the labor force sample has been improved on a number of
occasions. This has been accomplished in more obvious ways by several
increases in the size of the sample itself. Less obvious improvements were
made in the internal estimation techniques and in ways of updating the
universe of households. The net effect of the various changes which have
taken place has been to reduce gradually the sampling error in the data.
The data for the earlier years are therefore subject to higher sampling
error than are those for the later years. This should be, and often is,
reflected in diminishing disturbance values over time in the equations.
This in turn suggest a weighted estimation procedure be used in fitting
:
FOND
48
these equations. Unfortunately, the appropriate values of the weights
could not be developed in time for this analysis so a standard procedure
was used which gave equal weights to all of the observations.
3. This section on the quality of the labor force data must note
another source of indeterminacy. Sample households are contacted for
successive months of data and then dropped. They re-enter the sample
eight months later for another four-months period. Labor force analysts
directly concerned with the current population survey have long noted
that households first interviewed tend to have higher unemployment levels
than those which had also been interviewed in earlier months. The reason
for this consistent pattern has never been fully understood, although it
has been explored. Possibly, second and subsequent visits may introduce
a "learning" effect. In any case, a slight change in the interview situation,
or in the treatment of the data affects the results.¹
In 1967 a modified questionnaire was introduced for the current popula-
tion survey. During the preceding year, data were collected for two
independent household samples using both the old and the new ques-
tionnaires. These data indicated that unemployment rates for teenagers
were reduced slightly in the next questionnaire and had developed a new
seasonal pattern. Employment ratios for teenagers were slightly higher
although this was not a statistically substantial result.
An unusual problem arose in this connection. The basic analysis was
carried on with seasonally adjusted data. Because unemployment data
for 1967 and 1968 have seasonal patterns which differ markedly from
those in earlier years for young people, ordinary computer techniques of
seasonal adjustment based on continuity of patterns for a number of
years could not be used. The method which was used (not described here)
necessarily gave much weight to the patterns evident in 1967 and 1968
for seasonally adjusting these two years. Coincidently, basic changes took
place in the minimum wage in February 1967 and February 1968. If the
changes in the minimum wage affected the unemployment levels for
teenagers after the two Februaries, these effects may be partly erased
through reliance largely on the data for these two years to develop appro-
priate adjustments for seasonality. However, to the extent that the effects
of minimum wages are always present (as our basic models posit) then
the equations should pick up something in 1967 and 1968 as a whole, if
there is something to be discerned.
The indeterminacies attached to labor force data, particularly for young
people, and which are not given by sampling error measures, have come
to light recently in comparisons with a new source of data, a National
Longitudinal Study of the educational and labor market experience of
male youth 14-24 years of age by an Ohio State University group, under
the direction of Herbert S. Parnes.²
More detailed comparisons are made in the report cited, but they con-
tain many puzzling elements. One important ingredient must be con-
sidered. In the CPS, data for all members of the household over 16 years
of age are obtained from a single responsible household respondent. After
the first interview, many of the subsequent contacts are made by tele-
phone. In the LGS, all contacts are made with the individual who is in
:
FORD
GERALD
49
Table 2.12. Ratio of LGS to CPS estimates October 1966
Labor force
Employment
Unemployment
Unemployment
Sex and age
participation
ratio
ratio
rate
rate
WHITE MALES:
16-17
1.42
1.39
1.67
1.19
18-19
1.24
1.24
1.29
1.04
ALL OTHER MALES:
16-17
1.84
1.83
1.87
1.01
18-19
1.31
1.31
1.39
1.06
the sample. Parnes does not conclude that the LGS data are more accurate
than the CPS, but that they are definitely different from each other.
The important point for our purposes is that the teenagers, many of
whom have marginal attachment in the labor force, will have their
responses affected significantly by the structure of the survey instrument
and procedures. To what extent a different approach, such as that of
Parnes, would have yielded times series with significantly different
characteristics than the CPS, and a different set of conclusions about the
effects of minir. um wage must remain an unanswered question. But labor
force measures reflect the real world through a glass somewhat im-
perfectly.
Measured unemployment vs. potential
A study of the possible effects of minimum wage rates on the unem-
ployment rates of youth must be viewed within a broad context. As
already noted, this study primarily considers the employment and labor
force ratios of youth. The lack of employment opportunities for youth is
not solely reflected in unemployment but also in withdrawal from the labor
force. Hence, reduction of employment opportunities for youth may be
only imperfectly transmitted to increases in unemployment.
The complexity of the picture is partly indicated by the following
material. In 1968 the average number of male unemployed, 16-19 years
old, was 427,000. At the same time, the average number of males of the
same ages who were neither working nor seeking work was 3,002,000.
Although some of this group did not seek work because of more attrac-
tive alternative ways of spending their time, as many as 569,000 of them
would have taken jobs. This number is larger than the number who,
through some overt expression of seeking work, had been counted among
the unemployed.
Some 42,000 of the 569,000 did not seek work because they thought
they could not find it. Most of the 569,000 did not seek work because
they were attending school, and the kind of work they could engage in
would have to be available during the off school hours. However, they did
not test the labor market and we do not know whether jobs were available
on their term. Consequently, though some jobs may not have been avail-
able for teenagers because employers would have had to offer them higher
wage rates than they were prepared to pay, others were not available
because employers could not or chose not to restructure their jobs to fit
the hours desired. On the other hand. if they could have attracted prospec-
50
Table 2.13. Average Labor Force Status of 16-19-Year-Old Males and Females in 1968
[In thousands]
Status
Males
Females
Total noninstitutional civilian population
6,703
7,243
Civilian labor force
3,681
2,938
Employed
3,254
2,526
Unemployed
427
412
Want
Do not
Want
Do not
jobs
want jobs
jobs
want jobs
Not in labor force:
Total
569
2,453
652
3,653
In school
475
2,038
425
2,325
III health, disability
9
25
16
26
Home responsibilities
1
15
79
678
Think cannot get work
42
67
Want no job at present
354
397
All other reasons
42
65
Source: Special Labor Force Report No. 110, Monthly Labor Review, July 1969.
tive employees with the use of lower wage rates, they might have been
willing to do some of the necessary job restructuring.
The background data for 16-19 year old males and females are sum-
marized in table 2.13. The questions on reasons for not in labor force
have only been asked since 1967; therefore, such data for other years in
the postwar period are unfortunately, not available.
Nevertheless, a number of other analyses of postwar patterns of varia-
tions in labor force status for various age-sex-color groups show that
reductions in employment flow both to unemployment and out of the labor
force. In the same way employment increases draw upon the pool of
unemployed and those out of the labor force. Some people who evidence
no work-seeking behavior when disemployed during less prosperous times,
and therefore are counted among those not in the labor force, have been
labeled the "disguised" or "hidden" unemployed.3 These analyses, which
are necessarily indirect in nature, are supported by the new evidence of
the last two years on reasons for not being in the labor force.
Clearly, although work with the established categories of labor force
status is necessary, we must also bear in mind that our measured un-
employment does not represent the dimensions of need and desire for a
job. This will be discussed again below in another connection.
Effects of prosperity and affluence and changing social climate
In another way the present analysis, as well as those of previous
researchers, is deficient. The labor market for youth is thought of in an
oversimplified way. There are counts of the number of young who are
employed or unemployed, but no corresponding counts of the number of
job vacancies for young workers which remain unfilled for one reason or
another. From the statements, both voluntary and solicited, of individual
employers and others, such jobs exist, are known to exist. During the
post-World 11 years, for which labor force data are available, this country
FORD
51
has steadily maintained its economic progress and both individuals and
households have increased their standards of living. At the same time, and
at least partly fueled by these trends, as many see it, a pattern of rising
expectations has developed, particularly for the young. Many jobs, such
as bootblacks, messenger, stockboy, etc., which had been filled largely
from the ranks of young workers in the past, have moved down in relative
status, even though some of them may offer wage rates at or above the
legal minimum.
Apart from the various analyses of the effects of minimum wages on
labor force participation, other studies have been made in recent years
on the effects of welfare payments on incentives to participate in the
labor force. The results of these studies, as in the case of minimum wage
analyses, have been mixed. However, they have at least raised the pos-
sibility that the presence of increased earned or unearned incomes has a
dampening effect on labor force participation. For the purpose of this
chapter this hypothesis can be modified to cover the case of teenagers:
Does the amount of income of other family members, whether earned or
unearned, have a negative impact on the labor force participation rate
of teenagers? This can be manifested through both reduced employment
and unemployment as a result of reduced job search. Real family income
is not explicitly included among the variables in the present analysis,
but its effects are present. Since the influence of this omitted factor on
employment and unemployment is sometimes in the same and sometimes
in an opposite direction to that for the minimum wage variable, analysis
of the behavior of both the employment and unemployment ratios may
therefore be somewhat inconclusive. However, school enrollment rates
which have been included in the analysis, and which have risen steadily
throughout the period under study, may act as a partial proxy for family
income effects.
As in the previous section, some new information casts light on this
problem in data which have been collected since 1967. These are sum-
marized in table 2.14.
About 10 percent of the unemployment of each sex-color group consists
of those who said they left their job. Another 20 percent of males and 10
percent of females (white and others) lost their jobs, while the balance of
70 percent males and 80 percent females were looking for a job but had
previously been out of the labor force, whether or not they had ever
worked at an earlier time. In other words, some indication exists of volun-
Table 2.14. Reasons for Unemployment, 1968 Averages 16-19 Year Olds, by Sex and
Color
[Thousands]
White
Negro
Reasons for Unemployment
Male
Female
Male
Female
Job Leavers
41
34
12
9
Job Losers
71
36
22
12
Entrants and Reentrants
229
238
69
76
Total
341
308
103
97
52
tary disemployment among the young, which may well be related to the
economic status of the family.
FOOTNOTES
1 Robert Pearl and Joseph Waksberg, "Effects of Repeated Household Interviews
in the Current Population Survey," paper presented before the 47th National Con-
ference of the American Marketing Association, June 17, 1964.
2 In appendix E of their report, "Career Thresholds: A longitudinal study of the
educational and labor market experienced of male youth, 14-24 years of age" Volume
I Center for Human Resource Research (The Ohio State University, Columbus, Ohio,
1969). They compare their data (LGS) with CPS data and find that for the white
and Negro male groups, 16-17 and 18-19 years of age, their survey (also conducted
by the Bureau of the Census) uncovers both higher unemployment and employment
ratios than does the CPS. On the other hand, the unemployment rates are very
similar. There are some small differences in timing between the two surveys, but the
differences in results are larger than can be accounted for by known factors including
sampling error. Table 2.12 summarizes some of this information.
3 Thomas Dernberg and Kenneth Strand, "Hidden Unemployment 1953-62: A
Quantitative Analysis by Age and Sex," American Economic Review (March 1966),
pp. 71-95; Alfred Tella, "Labor Force Sensitivity to Employment by Age, Sex,"
Industrial Relations (February 1965), pp. 69-83; Sophia Cooper and Denis Johnston,
"Labor Force Projections for 1970-80," (BLS Special Labor Force Report No. 49,
1965).
4 William G. Bowen and T. Aldridge Finegan in their mammoth book, The Economics
of Labor Force Participation (Princeton University Press, 1969), p. 460, discuss a
byproduct phenomenon-the "hippie" movement and its impact on labor force behavior
for which they could not find any isolated effects in the data available through 1966.
APPENDIX B
Single Equation Biases in Findings
The equations in this analysis are of the form:
E = a. + a,AF + a2A + a3UR + a.P + asS + a.WW + other variables
U = b. +b,AF + b2A + b,UR + b.P + bsS + b.WW + other variables
and
L = Co + c.AF + c2A + c,UR + c,P + csS + c.WW + other variables.
In these single equation formulations, the assumption is that the inde-
pendent variables are independent in economic terms, but that any
covariation among them is taken care of in the statistical derivation of
the coefficients as "net" coefficients; in other words, each coefficient
represents the influence of that variable if all other variables are held
constant.
This analytical framework has yielded coefficients for the minimum
wage variable which are not in accord with economic theory, without
FORD
53
further qualifications. One source of the apparent contradiction has been
identified tentatively as the deficiency in our process of measuring un-
employment.
The present discussion is concerned with the possibility that the mini-
mum wage coefficients may be biased because they are derived from
single equations, although they should have been estimated within the
framework of a simultaneous equation model, with the appropriate inter-
dependencies among the variables explicitly exhibited.
In the absence of such a simultaneous model, a limited examination
was made of some implicit internal relationships among selected variables,
based on our earlier findings. Through this exploration we can see whether
the minimum wage relationships are more in accord with simple economic
theory even through the exploration does not obviate the problem of
simultaneity bias in the estimation.
This analysis was confined to the equation results for all teenagers
combined. First, let us specify that the adult male unemployment rate is
affected by the minimum wage variable in accord with economic theory.
As the minimum wage rises, the supply of adult male 'abor rises, but the
demand falls. It may be shown that the adult male unemployment rate will
thereby rise. In fact we find that
WW
where UR' is the derivative of UR with respect to WW, ns and nd are the
supply and demand elasticities. UR is less than one, WW is positive,
n₈ is positive, and nd is negative, SO that UR' is positive.
The derivative of the teenage unemployment rate with respect to the
minimum wage variable is
= = L 1
where U' and L' are partial derivatives with respect to WW.
From our single equations we find that
L'= co+ c,UR'
By combining these expressions and using the coefficients from our
equations plus 1968 values for the variables in these expressions, we find
that the adult unemployment rate elasticity with respect to minimum
wages would have to be about one third in order to lift the corresponding
teenage unemployment rate elasticity just over zero.¹ Moreover, the
teenage elasticity will always be less than the adult elasticity in the
positive range, a finding contrary to expectation. Consequently, this
exploration has not provided a wholly satisfactory answer to our original
puzzle. It must be emphasized, however, that there results are not defini-
tive, since they are still based on single equation ordinary least squares
estimates which are subject to simultaneity bias.
In this analysis we have ignored the possibility that other "inde-
pendent" variables may be affected by the minimum wage. Let us con-
FORD
sider that school enrollment may be so affected. I am inclined to thinks
54
that the elasticity with respect to the minimum wage variable should
be positive, although an argument can be made for a negative elasticity.
If an increase in the minimum shrinks the number of jobs held by teen-
agers and increases the number looking for work, there should be more
incentive for teens to stay in school, since there is less likelihood of their
finding a job. In any event we can investigate the relationship between
this elasticity and that for the teenage unemployment rate without
prejudicing our case.
Here we find U' = be + bsS', and L' = C₆ + c₅S'.
Our computations yield the following result:
nu L = - .1044 + .6593 ns where nu L and n. are elasticities.
This equation implies that if school enrollment has a negative elasticity,
the teenage unemployment elasticity will also be negative. On the other
hand, when nₛ is about .15, the teenage unemployment elasticity is zero,
and as nₛ increases in the positive direction, the teenage unemployment
rate elasticity also increases, but is never more than two thirds the
former.
Again, this result is difficult to accept. It would appear reasonable to
expect a small elasticity for the school variable than for the teenage
unemployment rate variable, but we find the opposite.
These two investigations have confined themselves to the relation-
ships of single variables to the minimum wage. Not only should other
variables such as AF and A be included, but they should be all con-
sidered within a simultaneous framework which brings us back to a
simultaneous equation model. At any rate while our original problem has
not been easily resolved in the terms of this further analysis, the analysis
does suggest that single equation bias may exist. This is not the only
technical problem which we must face in additional research on minimum
wages. All of these problems should offer a stimulus and a challenge to
the students in this field.
FOOTNOTES
1 The equation is nu L = .1044 + .3188nue.
CHAPTER III
Changes in the Federal Minimum Wage and the
Employment of Young Men, 1966-67
The 1966 Amendments to the Fair Labor
least temporarily, affect the amount of labor de-
Standards Act increased Federal statutory min-
manded, a number of attempts have been made
imum wage rates effective February 1, 1967, for
to gage the effect of increases in minimum
some 32.3 million workers previously covered,
wages on employment opportunities. Because
and extended protection to an additional 9.1
jobless rates among Negroes and others and
million employees for the first time. The U.S.
white teenagers have remained high or have in-
Department of Labor estimates that when the
creased in recent years despite low and declin-
amendments became effective in 1967, almost
ing overall unemployment rates, recent studies
3.7 million employees covered prior to that time
have sometimes focused specifically on the effect
were earning less than the new minimum of
of minimum wages on teenage employment.
$1.40 an hour. An additional 953,000 workers,
That is, attempts have been made to test the
or one-tenth of the newly covered, were earning
assertion that statutory wage minimums price
less than $1, the new minimum for this latter
teenagers out of the labor market, causing ei-
group. Extension of the act affected workers in
ther high unemployment rates or abnormally
certain industries much more than in others.
low participation rates.
Hospitals, nursing homes, laundries, and estab-
This chapter examines the labor force expe-
lishments in retail trade employed nearly half
rience of a national sample of young men inter-
of the newly covered and about three-tenths of
viewed in the fall of 1966 and again one year
those earning less than $1 an hour.¹
Prompted by the predictions of economic
later to test the assertion. These youth consti-
theory that statutory wage minimums will, at
tute one of the four population samples consti-
tuting the National Longitudinal Studies being
This chapter was prepared by Karl Egge, Andrew I.
carried out by The Ohio State University Cen-
Kohen, John R. Shea, and Frederick A. Zeller, of the
ter for Human Resource Research in coopera-
Center for Human Resource Research, The Ohio State
University. This preliminary report was prepared under
tion with the U.S. Bureau of the Census, under
a contract with the Manpower Administration, U.S.
contracts with the Manpower Administration
Department of Labor, under the authority of the Man-
of the U.S. Department of Labor. A representa-
power Development and Training Act. Researchers
tive sample of slightly more than 5,000 male
undertaking such projects are encouraged to express
their own judgment. Interpretations or viewpoints
youth 14-24 2 years of age in the noninstitu-
stated in this document, therefore, do not necessarily
tional civilian population was interviewed for
represent the official position or policy of the Depart-
the first time in October and November 1966
ment of Labor.
Footnotes begin on p. 62, tables on p. 63.
with a far more ambitious aim than that under
55
56
consideration here: To study the labor market
Our objective is more modest, that is, to ascer-
adjustment of young men over a 5-year period.³
tain whether young men whose wages in 1966
Fortuitously, the first of the six scheduled an-
were below the new minimums were more likely
nual interviews was conducted shortly before
than those already earning at least that much to
the 1967 minimum wage increase went into ef-
suffer a deterioration (or a lesser expansion) in
fect and the second about nine months after the
employment opportunities between 1966 and
effective date.
1967. In the light of some of the assertions that
have been made about the connection between
Research question
the minimum wage law and the recent behavior
of teenage unemployment rates, this seems to
In recent years a significant expansion in the
be an important question in its own right.
number of young people in the labor force has
Basically, the method of analysis in this re-
been witnessed, stemming from the "baby
port involves comparing the 1966-67 employ-
boom" of the late forties and fifties. Despite low
ment experience of young men who had differ-
overall unemployment rates, joblessness among
ent wage rates levels in 1966; less than $1,
white and Negro and other youth had remained
$1-1.39, $1.40 and more. The limits of these
high-with unemployment rates experienced by
wage categories were selected in the light of the
them in each age group being about double
provisions of the 1966 Amendments to the Fair
those for whites. Furthermore, as measured by
Labor Standards Act. The lowest category in-
the current population survey, between October
cludes all of those young men whose wage rate
1966 and October 1967, unemployment rates
prior to February 1, 1967, was below the mini-
rose substantially for male youth enrolled in
mum established for those persons newly
school and slightly for those not enrolled (table
brought under the coverage of the act at that
3.1).
time. Although we cannot be certain that all the
High rates of unemployment among young
youth in this category were directly affected by
people have added to the controversy over the
the law, we do know that none of the directly
wisdom of statutory wage minimums. It is
affected male youth within the age limits of the
argued by some that young people tend to be
study are outside the category. Similarly, all
inexperienced and that many may be priced out
employed youth whose wage rates prior to Feb-
of the market. Their potential contribution to
ruary 1, 1967, were directly affected by the in-
the economy (marginal productivity) may be
crease in the minimum rate from $1.25 to $1.40,
less than the minimum wage. To the extent that
are included in the middle category. However,
this is true, some young people may remain
there also may be some in that category in types
openly unemployed or may withdraw from the
of work not previously covered by the law and
labor force through frustration and end up
thus unaffected by the increase. Finally, no one
among the "disguised unemployed."
in the top category was directly affected by the
We do not propose to make a definitive test of
amendments since all of them were already re-
conventional wage theory. For one thing, the
ceiving more than the new minimum.
ceteris paribus assumptions of the theory make
Our strategy is to compare the 1966-67 em-
a definitive test extremely difficult, if not impos-
ployment experience of those who were poten-
sible, to design. The theory makes no unambi-
tially affected by the law (those earning less
guous prediction about the effects of an increase
in the minimum wage on the employment op-
than $1 and between $1 and $1.39 in 1966),
portunities for particular groups of persons
with that of the group that could not have been
(for example, teenage males). At least theoreti-
directly affected (those earning more than
cally, there are opportunities for complex sub-
$1.40). If the change between 1966 and 1967
stitutions of various types of workers for others
was more unfavorable for the lower wage group
so that an increase in the minimum wage for
than for the higher wage groups, this would be
some workers might reflect itself in adverse em-
consistent with (although not proof of) an ad-
ployment effects on other groups of workers.
verse employment effect of the minimum wage
57
changes. If not, it would make claims of serious
but are frequently average hourly earnings.5
adverse effects of the minimum wage on em-
Moreover, for large numbers of students-espe-
ployment opportunities for youth more difficult
cially those who reported their earnings on a
to support.
daily basis-it was impossible to calculate an
Three different types of measures were used
hourly rate, and these are excluded from the
to compare the relationship between the 1966
analysis.
and 1967 employment experience of the youth:
Second, since the analysis uses wage rate as a
1. The labor force participation rate and the un-
major control, it is confined to those youth who
employment rate during the survey week' of
have at some time worked for pay. Any effect of
1966 compared with those prevailing during the
a minimum wage in limiting employment op-
survey week of 1967.
portunities for youth entering the labor market
2. For those employed in 1966, the rate of dis-
for the first time would not be reflected in the
employment-that is, movement into unem-
ployment and/or out of the labor force-between
data. Although the tabulated wage rate reflects
the survey week of 1966 and the survey week
the wage as of the autumn of 1966 for those
of 1967.
respondents who were employed at the time of
3. Change in mean number of weeks unemployed
the first survey, for others with work experi-
and mean number of weeks out of the labor
force between the 12-month period preceding
ence it reflects the earnings of their most recent
the 1966 interview and the 12-month period pre-
job.
ceding the 1967 interview.
Third, there has been some attrition in our
sample between the 1966 and 1967 surveys, al-
Limitations of the data and the analysis
though it has been remarkably small, especially
in view of the age-sex characteristics of the
The interview schedules used in 1966 and
group. Of those interviewed in 1966, 5.3 percent
1967 were not designed specifically for a special
had entered the Armed Forces by the following
study of the effect of minimum wage standards.
year and an additional 3 percent were not inter-
Had the longitudinal study been addressed spe-
viewed for other reasons, making an attrition
cifically to the minimum wage issue, different
rate of slightly over 8 percent. Tabulations that
variables and questions doubtlessly would have
would permit an analysis of the characteristics
been included in the interview schedules and,
of the nonrespondents are not yet available.
ultimately, in the analysis. Nonetheless, the two
Fourth, although the timing of the surveys
surveys have produced types of data for a na-
relative to the date of the effective change in
tional sample of male youth that, to the best of
the minimum wage was fortunate for purposes
our knowledge, are unique in that they permit
of this study, it was by no means perfect. The
employment experience prior and subsequent to
12-month period prior to the 1967 interviews,
a change in the minimum wage to be related to
which is being used to represent the situation
the wages that the employed youth earned prior
after the increase in minimum wages, actually
to the change. Moreover, additional data permit
includes at least two months, and possibly
the youth to be classified according to color, age,
educational attainment, industry, occupation,
three, prior to the effective date of the
extent of labor market knowledge, unemploy-
amendments.6
ment level in the local area, and region. These
Finally, and probably most important, our
characteristics are important since it is conceiv-
sample is really too small to permit reliable esti-
able that adverse employment effects, even if
mates to be made for many of the categories of
not generally discernible, will be manifested
youth, once all of the necessary controls are in-
among certain groups that have special labor
troduced. For instance, in comparing employ-
market disadvantages.
ment experience in 1966 with that of 1967, it
Although the data afford a basis for some
does not make much sense to combine persons
unique analysis, their limitations must be kept
who have been in school both years with those
in mind in interpreting the findings. First, our
who have been out of school both years or with
wage data are not in all instances wage rates,
those whose enrollment status has changed be-
58
tween the two years. Consequently, in most of
whites and blacks within each wage category
the analysis we examine only two groups
are virtually identical with their proportions in
Those who were enrolled in school both years
the total group. If the large number of cases for
and those enrolled neither year. Even within
which no wage information is available (about
these relatively large groups, however, when we
30 percent of the white and 28 percent of the
have controlled for color, age, and educational
Negroes and others) are distributed similarly
attainment, we are frequently reduced to pain-
for the two color groups-and there is no rea-
fully small cell sizes. As an arbitrary rule, we
son to suppose that they are not-this means
have decided not to use any percentages based
that at least among 15-17-year-olds enrolled in
on fewer than 25 sample cases.
school both before and after the increase in the
minimum wage, Negroes and others were no
The incidence of low wages
more likely than whites to be directly affected
by the new rate.
Before examining the relation between 1966
A positive relationship between wage and ed-
wage rate level and comparative labor market
ucational attainment is pronounced among
experience in 1966 and 1967, the characteristics
youth in their early twenties who are out of
of youth in three wage categories will be com-
school and is discernible even among the rela-
pared. Table 3.2 shows that there is a pro-
tively narrow age range of young students
nounced positive association between hourly
(table 3.4). Among the latter, the proportion of
rate of pay and age. Although 62 percent of the
the high-wage group who had attained at least
youth earning less than $1 an hour were 15-17
a high school diploma was three times the pro-
years of age, only 8 percent of those earning
portion of the low-wage group (22 percent ver-
$1.40 or more were within that age bracket.
sus 7 percent). In the case of the out-of-school
The relationship is more consistent among those
group, those with less than a high school educa-
enrolled in school in both 1966 and 1967 than
tion constituted two-thirds of the lowest wage
among those out of school both years. Neverthe-
group; three-fifths of those earning between $1
less, even in the latter case, the age differences
and $1.39 an hour; but only one-third of those
among the wage groups are quite striking. For
earning $1.40 an hour or more. Young men with
example, 20 percent of those earning less than
some college made up one-fifth of those earning
$1 an hour were under 20 years of age, while
$1.40 an hour or more and much smaller pro-
the comparable proportion of those earning
portions of those earning less. We are per-
$1.40 an hour or more was 12 percent.
plexed that there should be as many as 8 per-
Sample size is too small to explore color dif-
cent of those earning between $1 and $1.39 who
ferences in wage rates for all age-school enroll-
have had some college work. The very small
ment categories. Table 3.3, however, shows the
numbers with 16 years or more of school may
relationship for the two groups on which most
of the subsequent analysis in this report will
well be in various kinds of internship programs,
focus: 15-17 year olds who were enrolled in
but we have not been able to think of an equally
school both years and 20-25 year olds who were
plausible explanation for those with 13-15
out of school both years. As would have been
years of schooling.
anticipated, there are clear differences in the
color distributions of the three wage-rate
Analysis of results
groups among the out-of-school youth. Whites,
who constitute 85 precent of all of the youth in
Of the more than 9.5 million young men rep-
this category, make up only 58 percent of those
resented by our sample who were between the
earning under $1 an hour, 71 percent of those
ages of 15 and 25 in 1967 and for whom we
with wage rates of $1-$1.39 an hour, but 88
have wage data, 36 percent had hourly rates of
percent of those earning over $1.40 an hour.
pay under $1.40, including about 10 percent
In contrast, no such difference prevails
whose rates were under $1. However, those
among those in school. The proportions of
earning under $1.40 were quite unevenly rep-
59
resented among youth with different demo-
each wage-rate category several measures are
graphic characteristics. They constituted 58
presented, each of which is designed to compare
percent of those enrolled in school in both 1966
an aspect of labor market experience prior to
and 1967 but only 16 percent of those out of
and following the effective date of the changes
school both years. They were 79 percent of the
in the minimum wage law.⁸ Column II shows
15-17 year olds but only 43 percent of the 18
the algebraic change in the average number of
and 19 year olds, and 16 percent of the 20-25
weeks of unemployment during the 12-month
year olds. Finally, they constituted 28 percent
period preceding the 1967 survey from the
of the whites but 35 percent of the Negroes and
average number of weeks in the comparable pe-
others.
riod prior to the 1966 survey. A negative sign,
The groups whose wage rates in 1966 were
in other words, means a decline in number of
below the minimums that became effective in
weeks unemployed between 1966 and 1967. Col-
1967 included large numbers of individuals with
umn III presents the analogous measure for
above-average susceptibility to unemployment
number of weeks out of the labor force.
and above-average rates of movement into and
Column V shows the number of individuals
out of the labor force under any circumstances
who were employed at the time of the 1966 sur-
-students, the youngest group of teenagers,
vey. The disemployment rate, shown in Column
those with the least education, and Negroes and
VI, is the percent of the number employed at
others. This has important implications for por-
the time of the 1966 survey who were not em-
tions of the analysis that follows. When we con-
ployed at the time of the 1967 survey (those
sider disemployment rates-that is, proportions
unemployed or out of the labor force). Column
of employed youth in the survey week of 1966
VII presents a component of Column VI-the
who were unemployed or out of the labor force
percent of those employed in the 1966 survey
in 1967-we shall have to keep in mind that
week who were unemployed in the 1967 survey
low-wage workers would be expected, irrespec-
week. Column IV is included to aid in the inter-
tive of the changes in the minimum wage law,
pretation of the disemployment rates. It shows
to show higher disemployment rates than
the proportion of the total number of persons
higher-wage workers for the reasons that have
with work experience who were not working at
been discussed above
the time of the survey in 1966. The fact that
A counteracting influence obtains not only
this proportion is higher for low-wage than for
the analysis of disemployment rates but also
high-wage workers suggests that the disemploy-
with respect to other measures of labor market
ment rate for those employed in 1966 should be
experience. This is because the total sample has
expected to be higher for low-wage than for
aged a year between 1966 and 1967. Since an
high-wage workers, even in the absence of a
additional year of age probably has a greater
change in. the minimum wage law.
effect on the employability of the younger than
In interpreting table 3.5 and subsequent ones
of the older members of the sample, and since
similar to it, our purpose is to ascertain
the younger are disproportionately represented
whether the low-wage groups had a relatively
among the low-wage workers, this factor tends
less favorable experience after the minimum
to impart a bias against finding an adverse em-
wage changes became effective than the high-
ployment effect of the minimum wage.
wage groups; if so, we would regard this as
evidence consistent with an adverse employ-
Relation between 1966 wage rate and
ment effect of the change in the law.
comparative 1966-67 employment experience
The criterion for deciding whether the com-
ALL YOUTH WITH WORK EXPERIENCE. Table 3.5
parative changes in average number of weeks
classifies all youth with work experience accord-
unemployed (or out of the labor force) indicate
ing to the wage rate of the job they held at the
an unfavorable experience for the low-wage
time of the 1966 survey or, if not working then,
group relative to the high-wage group is quite
their last job before the 1966 survey week.⁷ For
straightforward: If the algebraic differences
60
show a greater increase (smaller decrease) for
only those who were employed in 1966 and are
the low-wage group, then the inference is that
based on comparisons involving only two indi-
its experience was unfavorable. Because of the
vidual weeks. On the other hand, because the
ambiguities in the disemployment rates, we use
current labor force and employment status of
a somewhat more complicated criterion for
respondents is based on a series of questions
drawing the analogous inference on the basis of
asked about activity during the week preceding
these rates. If the comparison of the following
the interview, while the year's work experience
two ratios indicates that the disemployment
data are based on the recall of the respondent
ratio is significantly greater than the nonem-
and do not involve careful probes for each of
ployment ratio, we conclude that the low-wage
the 52 weeks under consideration, the survey
group did suffer in relation to their better-paid
week data probably have greater validity.
counterparts:
(1) disemployment rate of low-wage group
Youth classified by school enrollment status
disemployment rate of high-wage group
= disemployment ratio
In any case, the categories shown in table 3.5
(2) 1966 nonemployment rate of low-wage group
are probably too gross for meaningful analysis.
1966 nonemploymnet rate of high-wage group
In an attempt to focus on reasonably homoge-
= 1966 nonemployment ratio
neous subgroups of young men, we have di-
It is clear from the data in table 5.5 that the
rected our attention to two groups: (1) Those
15-17 years of age in 1967 who were attending
mean number of weeks of unemployment and
school in both 1966 and 1967 and (2) those
mean number of weeks out of the labor force
decreased between 1965-66 and 1966-67 ir-
20-25 years of age in 1967 who were not en-
rolled in school in either year. The size of the
respective of 1966 wage level. Moreover, con-
trary to what one would expect if the change in
sample has made it impossible to study other
groups.
the minimum wage law had an adverse employ-
ment effect, decreases for those who earned less
Table 3.8 presents the labor force participa-
tion rates and unemployment rates in the 1966
than $1.40 an hour are actually greater than for
those who earned $1.40 an hour or more.
and 1967, survey weeks for each of these two
On the other hand, the data that focus only
groups. The unemployment rates are generally
higher in 1967 than in 1966 for the student
on those who were employed in the 1966 survey
week point in the opposite direction. As table
group, and the labor force participation rates
3.7 indicates, low-wage workers who were em-
are lower. These facts in and of themselves
ployed in the 1966 survey week were more
might be construed to be evidence of an adverse
likely than their higher-wage counterparts to be
employment effect of the minimum wage
unemployed or out of the labor force by the
change. It might be argued, for example, that
time of the 1967 survey. This would be expected
the higher minimum wages for these low-pro-
for reasons that have previously been ex-
ductivity students curtailed employment oppor-
plained; but it is also true that the disemploy-
tunities for them during a period when the gen-
ment rates relative to the 1966 nonemployment
eral demand for labor was rising, resulting in
rates are generally more unfavorable for the
higher unemployment for this group of teenag-
low-wage than the high-wage workers.
ers and the withdrawal of some of them from
No ready explanation for the seemingly con-
the labor force.
flicting trends produced by the two measures is
However, the increases in unemployment and
available. Each measure has certain advan-
the decreases in labor force participation are
tages. Those based on weeks of unemployment
generally at least as large for high-wage as for
and weeks out of the labor force have the merit
low-wage workers. We find only two instances
of covering a longer time span and of taking
in table 3.8 in which a low-wage group suffered
into account all of the youth with work experi-
relative to a high-wage group. Among Negro
ence, while the "disemployment rates" consider
and other teenagers who were students in 1966
61
and 1967, the unemployment rate of the lowest
Selected categories of "disadvantaged" youth
wage category rose by 11.9 percentage points
while unemployment of those in the middle
Even though the evidence presented thus far
wage group actually decreased by 1.2 percen-
points to no generally adverse effect of the 1967
tage points. Among young white men 20-25
changes in Federal minimum wages on the em-
years of age who were out of school both years,
ployment opportunities of young men, is it pos-
the unemployment rate of those in the $1-$1.39
sible that particular categories of youth, who
wage bracket rose, while the corresponding rate
may be presumed to suffer special competitive
for their counterparts earning $1.40 or more
disadvantages in the labor market, were unfa-
fell. The latter comparison is somewhat atten-
vorably affected? In an attempt to answer this
uated by the observation that the labor force
question, we examined the record for groups of
participation rate of the high-wage group fell
young men within the age categories referred to
and that of the low-wage group was constant.
above who might, on a priori grounds, be most
In other words the reduced unemployment rate
vulnerable to the impact of a minimum wage:
of the high-wage group may be partly attribut-
Those with 11 or fewer years of education;
able to the less employable members of the
those with no formal occupational training;
group leaving the labor force.
those exhibiting the least knowledge of the
Table 3.9 contains the same kinds of data for
labor market;¹¹ those residing in the South;
the 15- to 17-year-old students and those 20-25
those residing in Primary Sampling Units
years old not enrolled in either year that have
where the 1967 unemployment rate was greater
already been examined in table 3.5 for the total
than 5.1 percent; those in the industries of
age cohort.9
wholesale and retail trade, and five service in-
Using the four measures of comparative
dustries (medical, health, education, entertain-
labor force and employment experience among
ment and recreation, and personal) ; and those
teenage students, there is no instance in which
in the occupation groups of clerical/sales, oper-
they consistently point to a low-wage group suf-
ative, nonfarm labor, service.
fering relative to a high-wage group. Among
The rationale for having selected these par-
Negroes and others, those earning less than $1
ticular subgroups is, in most cases, self-evident.
an hour in 1966 had a smaller decrease in aver-
The industry and occupation categories were
age number of weeks out of the labor force and
chosen on the basis of their relatively greater
experienced relatively (and absolutely) higher
likelihood of having been affected by the ex-
disemployment rates than those earning be-
tended coverage of the minimum wage law. Res-
tween $1 and $1.39 an hour (table 3.9). How-
idents of the South were chosen because of our
ever, the former group also had a slightly
belief that young men in this region, on the
larger decline in average number of weeks un-
average, have lower productivity than their
employed. Among the out-of-school youth 20-25
counterparts in other regions-largely as a re-
years of age, the implications of our measures
sult of their lower average educational attain-
are similarly inconsistent, with one exception.
ment.
That is, the comparison between Negroes and
For each of the aforementioned categories,
others in the middle wage group and the high-
tabulations were prepared identical to those
est wage group indicates that the former suf-
shown in table 3.8. In many of these tables, cell
fered relative to the latter.¹⁰ Those in the
sizes are SO small for particular categories of
$1-$1.39 wage category experienced a greater
youth as to preclude any analysis; and in vir-
increase (by 2.4 weeks) in mean number of
tually none of them were numbers large enough
weeks unemployed; an increase (as compared to
to permit confident conclusions. Nevertheless,
a decrease for those earning $1.40 or more) in
each was studied carefully for any evidence,
mean weeks out of the labor force; and a sub-
however slight, of adverse employment effects
stantially higher (more than twice) rate of dis-
using the same criteria that have been applied
employment.
in all the preceding analyses. The following
BRALD
62
comparisons controlling for color and the afore-
Conclusion
mentioned characteristics were made: (1)
Those earning less than $1 versus those earning
Given the limitations of our data and the in-
$1-$1.39; (2) those earning $1-$1.39 versus
herent difficulties in testing the wage-employ-
those earning $1.40 or more; and (3) those
ment relationship empirically, it is hardly sur-
earning less than $1 verus those earning $1.40
prising that we are unable to state a completely
or more. The only groups within which the data
confident and definitive conclusion about what
were to any degree consistent with an adverse
effects, if any, the changes in the Fair Labor
employment effect are those shown in tables
Standards Act that became effective February
3.10 and 3.11. As will be noted, even here the
1, 1967, had on employment opportunities for
record is in most cases by no means clear.
male youth.
Among students 15-17 years of age, the
Despite the limitations of the data, however,
groups for whom the several measures most
they have the very real advantage of permitting
consistently point to the possibility of an unfa-
the "before and after" experience of the youth
vorable employment affect of the minimum
to be related to the wage they were earning
wage changes are (1) blacks exhibiting the
before the new minimums became effective. We
least amount of labor market information; and
have been able to ask, therefore, whether those
(2) youth employed as service workers, ir-
youth whose marginal productivity (as mea-
respective of color. For the former, the ratio of
sured by their rate of pay) was lower than the
the disemployment rates as between low-wage
newly established minimum had relatively less
and high-wage workers is more than twice the
favorable employment experiences after the
ratio of their 1966 nonemployment rates; and
minimum wage changes than those whose
the changes in the average-weeks measures also
wages already had been above the minimums.
indicate a less favorable experience for those
One would expect these low productivity
earning less than $1 than for those in the
youngsters to be among the first to feel what-
higher-wage category (table 3.10).
ever restriction of employment opportunities
Among young men in their early twenties, we
the minimum wage created.
are unable to single out any groups of whites
The fact that we have been unable to find in
for whom the size of the sample permits state-
our data any general tendency for the foregoing
ments about the lower-wage category and for
relationship, leads to the conclusion that if the
whom the measures are consistent. However,
minimum wage increases did indeed create un-
among Negroes and others, the following char-
employment among youth, the effect was not a
acteristics seem to be associated with an ad-
pronounced one. Even when the analysis was
verse impact of the minimum wage changes:
focused on those subgroups of young men who
Absence of occupational training; employment
might, on a priori grounds, be expected to be
as an operative; employment in the whoelsale/
most vulnerable to the impact of the minimum
retail trade industry; little knowledge of the
wage, only a small number of such subgroups
world of work; and resident in the South (table
showed any evidence of adversity. In stating
3.11). Obviously, these characteristics are not
even this cautious conclusion, however, we must
mutually exclusive, and interaction among them
acknowledge that our data are confined to youth
probably serves to increase the likelihood of an
who have had some work experience; they tell
individual having been adversely affected by the
us nothing about those entering the labor mar
new minimum wage level.
ket for the first time.
FOOTNOTES
'Jack 1. Karlin, "Economic Effects of the 1966
The age criterion for inclusion in the sample was
Changes in the FLSA," Monthly Labor Review (June
an attained age of 14-24 as of April 1966. Since this
1967), p. 21. The present report deals exclusively with
study deals with comparisons of labor force behavior
the impact of the increases which went into effect in
between the 1966 and 1967 interview dates, we will use
February 1967.
the 1967 ages of the sample (15-25) hereafter in this
FORD
RALD
63
report, except those for table 3.1, which are based on
Similar tabulations for 15-19-year-olds are pre-
U.S. Department of Labor data.
sented in table 3.6.
a Results of the initial survey and the methodology
8 In no cases were any tests of significance attempted
employed in collecting the data are presented by Herbert
with respect to the data presented in this report. Thus,
S. Parnes, Robert C. Miljus, Ruth S. Spitz, and Asso-
we do not know if any of the differences which are
ciates in Career Thresholds: A Longitudinal Study of
reported are statistically significant. However, the dif-
the Educational and Labor Market Experience of Male
ferences which are reported in the remainder of this
Youth, 14-24 Years of Age, Volume I (Columbus, Ohio:
report are at least large enough to be of some interest.
Center for Human Resource Research, The Ohio State
University, February 1969) appendix B.
The only difference is that for the 20 to 25-year-old
age group only one disemployment rate is shown, viz.,
4 By "survey week" we refer to activity in the
the proportion of those employed in the 1966 survey
calendar week preceding the time of the interview.
week who were unemployed in the 1967 survey week.
& Hourly rate of pay was computed in the following
The reason for the different treatment of the two age
manner: Employed respondents were asked, "How much
groups in this respect is that we believe that the
do you usually earn at this job before deductions?"
stimuli which induce movement out of the labor force
Responses in terms of an hourly rate were coded as
and movement into unemployment are quite similar for
received. Responses in terms of a weekly figure were di-
young students, but that different sets of factors are
vided by the number of hours usually worked per week
operative in the two types of movement in the case of
in the past 12 months in the case of those who had
the older nonstudents. In other words we are more
been out of school for at least 12 months and by number
willing to conceive of discouraged workers and dis-
guised unemployment among teenage students than
of hours worked during the survey week in the case of
among men in their early twenties who are out of
those who had been students during the past 12 months.
school.
Responses in terms of biweekly, semimonthly, monthly,
or annual figures were converted first to weekly data
10 Although analogous inferences can be drawn from
by dividing by the appropriate factor for example, 2.2
the data on the total age cohort, it is clear from
for semimonthly and 52 for annual) and then treated
examining the data for whites that the inferences apply
only to Negroes and others.
the same as a weekly wage.
8 Interviewing for the 1967 survey began during the
11 For a complete description and explanation of this
week of October 23 and was completed by the end of
measure, see Herbert S. Parnes, et. al., op. cit., pp.
November.
120-121.
Table 3.1. Civilian Labor force Participation Rates and
Unemployment Rates, October 1966 and October 1967:
Men 14-24 Years of Age, by School Enrollment Status
Population
Labor force
Unemploy-
(thousands)
participation
ment
School enrollment
rate
rate
status and age
1966
1967
1966
1967
1966
1967
Enrolled, total
10,278
10,471
31.9
33.8
7.1
11.1
14-15
3,640
3,738
16.6
17.2
6.6
13.5
16-17
3,130
3,235
38.5
40.9
9.2
14.2
18-19
1,841
1,636
37.5
40.1
8.1
11.3
20-24
1,667
1,862
46.7
49.5
3.2
4.9
Not enrolled, total
5,781
5.889
93.7
92.6
5.2
6.2
14-15
47
66
16-17
351
323
73.5
75.5
19.4
20.5
18-19
1,346
1,272
88.6
87.9
8.4
10.7
20-24
4,037
4,228
97.7
96.3
3.3
4.0
Enrolled and not enrolled,
total
16,059
16,360
54.1
55.0
5.9
8.1
14-15
3,687
3,804
16.9
17.4
6.6
14.0
16-17
3,481
3,558
42.0
44.1
11.0
15.2
18-19
3,187
2,908
59.1
61.0
8.3
10.9
20-24
5,704
6,090
82.8
82.0
3.3
4.1
Sources: U.S. Department of Labor. Bureau of Labor Statistics. (BLS Special Labor
Force Report 87. 1967) Employment of School Age Youth October 1956. p. A-5. U.S.
Department of Labor. Bureau of Labor Statistics (BLS Special Labor Force Report 98,
1968) Employment of School Age Youth, pp. 36, A-5.
GERALD
64
Table 3.2. Age, by school enrollment status and 1966 hourly rate of pay: Men 15-25 years of age with work experience
Enrolled both years
Not enrolled either year
Total 1
Age
Less
$1.00
$1.40
Total 3
Less
$1.00
$1.40
Total ,
Less
$1.00
$1.40
Total $
than
to
or
or
than
to
or
or
than
to
or
or
$1.00
$1.39
more
average
$1.00
$1.39
more
average
$1.00
$1.39
more
average
Total percent
100
100
100
100
100
100
100
100
100
100
100
100
Total number (thousands)
593
1,644
1,611
5,608
230
526
3,896
5,024
918
2,553
6,142
12,168
15-17
86
68
27
53
8
6
1
3
62
50
8
28
18-19
11
22
29
22
12
26
11
13
13
26
17
20
20-25
2
10
44
25
79
68
88
84
25
24
74
52
1 Total includes respondents who changed their school enrollment status between
1 Total includes respondents for whom 1966 hourly rate of pay was not ascertained.
1966 and 1967.
Note: Because of rounding, sums of individual items may not equal total.
Table 3.3. Color, by 1966 hourly rate of pay: Men 15-17
Table 3.4. Highest year of school completed, by 1966
years of age enrolled in school in 1966 and 1967 with
hourly rate of pay: Men 15-17 years of age enrolled in
work experience, and men 20-25 years of age not enrolled
school in 1966 and 1967 with work experience and men
in school in 1966 and 1967 with work experience
20-25 years of age not enrolled in school in 1966 and
1967 with work experience
15-17 years old, enrolled 1
20-25 years old, not enrolled
15-17 years old. enrolled
20-25 years old. not enrolled
Color
Less
$1.00
$1.40
Less
$1.00
$1.40
Highest year of
than
to
or
Total 1
than
to
or
Total 1
$1.00
$1.39
more
$1.00
$1.39
school completed
Less
$1.00
$1.40
Total 1
Less
$1.00
$1.40
Total 1
more
than
to
or
or
than
to
or
or
$1.00
$1.39
more
average
$1.00
$1.39
more
average
Total percent
100
100
100
100
100
100
100
100
Total percent
100
100
100
100
100
100
100
100
Total number
(thousands)
510
1,124
438
2,971
182
358
3,428
4,196
Total number
Whites
89
88
90
89
58
71
88
85
(thousands)
510
1,124
438
2,971
182
358
3,428
4,196
Negroes and others
11
12
10
11
42
29
12
15
11 or less
93
90
78
89
66
60
34
36
12
6
10
21
11
32
32
46
46
13-15
1
0
1
0
0
7
12
11
1 Total includes respondents for whom 1966 hourly rate of pay was not ascertained.
16 or more
0
0
0
0
2
1
8
7
1 Total includes respondents for whom 1966 hourly rate of pay was not ascertained
Table 3.5. Change in mean number of weeks unemployed, change in mean number of weeks out of the labor force,
1966 nonemployment rate, and disemployment rates, by 1966 hourly rate of pay: Men 15-25 years of age with work
experience
Change in
Change in
1966
Total
Dis-
Disemployment
Total
mean weeks
mean weeks
Non-
number
employment
rate (into
Hourly rate of pay (dollars)
number
unemployed 1
out 2
employment
employed
rate 4
unemployment
(thousands)
(weeks)
(weeks)
rate 1
1966
(percent)
only) $
(percent)
(thousands)
(percent)
I
II
III
IV
V
VI
VII
19.6
4.3
Less than $1.00
918
-1.4
-3.5
25.6
683
$1.00-$1.39
2,553
-2.1
-3.1
31.9
1,739
33.2
7.6
$1.40 or more
6,142
-0.3
-2.4
14.4
5,057
8.2
2.5
Total or average 4
12,168
-1.1
-2.4
28.9
8,653
13.2
3.4
1 Mean number of weeks unemployed during the 12 months preceding the 1967
1 Proportion of all those with work experience not employed during the survey week
survey minus the mean number of weeks unemployed during the 12 months preceding
in 1966.
the 1966 survey.
4 Proportion of those employed during the 1966 survey week who were either unem-
1 Mean number of weeks out of the labor force during the 12 months preceding the
ployed or out of the labor force during the 1967 survey week.
1967 survey minus the mean number of weeks out the labor force during the 12 months
$ Proportion of those employed during the 1966 survey week who were unemployed
preceding the 1966 survey.
during the 1967 survey week.
4 Total includes 2,554 for whom 1966 hourly rate of pay was not ascertained.
RALD
65
Table 3.6. Change in mean number of weeks unemployed, change in mean number of weeks out of the labor force,
1966 nonemployment rate, and disemployment rates, by comparative school enrollment status 1966-67 and 1966
hourly rate of pay: Men 15-19 years of age with work experience
Change in
Change in
1966
Total
Dis-
Disemployment
Total
mean weeks
mean weeks
Non-
number
employment
rate (into
Comparative school enrollment status and hourly rate of pay
(dollars)
number
unemployed 1
out :
employment
employed
rate
unemployment
(thousands)
(weeks)
(weeks)
rate 2
1966
(percent)
only)
(percent)
(thousands)
(percent)
I
II
III
IV
V
VI
VII
In school:
4,211
-2.5
-2.5
50.3
2,092
33.4
7.5
1966 and 1967 2
578
-1.0
-3.4
30.7
400
26.6
6.5
Less than $1.00
1,478
-3.0
-3.0
42.3
852
34.9
7.3
$1.00-1.39
903
-1.6
-3.9
39.4
548
34.7
7.9
$1.40 or more
Out of school:
827
+0.5
-8.8
14.8
706
12.0
5.8
1966 and 1967 2
47
+2.6
-11.9
8.8
43
14.9
1.8
Less than $1.00
$1.00-1.39
168
+2.4
-8.8
17.9
140
11.9
6.7
5.5
468
-0.3
-8.2
4.9
444
11.4
$1.40 or more
5,854
-1.9
-4.1
43.4
3,311
25.8
6.5
Total or average
688
-1.3
-4.6
28.2
492
25.6
5.3
Less than $1.00
$1.00-1.39
1,941
-2.3
-3.9
37.6
1,210
28.2
6.5
1,165
22.5
6.4
$1.40 or more
1,591
-1.0
-5.5
26.8
1 For a definition of these measures, see the footnotes to table 3.5.
$ Totals include young men who were enrolled one year but not the other.
2 Includes persons for whom 1966 hourly rate of pay was not ascertained.
Table 3.7. Disemployment and nonemployment ratios:
Table 3.8. Survey week labor force participation rates
Men 15-25 years of age employed during the 1966 survey
and unemployment rates by 1967 age and 1966 hourly
week
rate of pay: Men 15-17 years of age enrolled in school in
1966 and 1967 with work experience and men 20-25
Disemployment ratios
years of age not enrolled in school in 1966 and 1967 with
work experience, by color
1966 non-
Hourly rate of pay (dollars)
To unem-
To unem-
employment
ployment or
ployment
ratios
Labor force
Unemployment
out of
only
Total
participation
rate 1
labor force
Age, school enrollment status,
number
rate 1
color, 1966 hourly rate of pay
(thou-
Less than $1.00/$1.40 or more
2.39
1.72
1.78
sands)
1966
1967
1966
1967
$1.00 to $1.39/$1.40 or more
4.05
3.04
2.22
Age 15-17. enrolled both years:
Whites:
Less than $1.00
456
74.4
66.7
6.7
11.3
$1.00-$1.39
995
68.7
64.0
12.8
17.5
$1.40 or more
394
74.0
67.9
7.8
12.5
Negroes:
Less than $1.00
54
86.3
68.1
7.0
18.9
$1.00-$1.39
129
56.7
51.6
23.1
21.9
$1.40 or more
44
78.2
68.0
2.7
20.9
Age 20-25, not enrolled either year:
Whites:
Less than $1.00
105
100.0
100.0
11.9
3.8
$1.00-$1.39
254
98.3
98.3
0.0
0.7
$1.40 or more
3,024
99.4
98.9
1.3
1.0
Negroes:
Less than $1.00
77
98.5
100.0
3.1
3.1
$1.00-$1.39
104
98.7
98.9
7.4
9.1
$1.40 or more
404
95.2
96.1
1.9
5.3
1 Of youth with work experience.
66
Table 3.9. Change in mean number of weeks unemployed, change in mean number of weeks out of the labor force,
1966 nonemployment rate, and disemployment rates, by 1966 hourly rate of pay: Men 15-17 years of age enrolled in
school in 1966 and 1967 with work experience, and men 20-25 years of age not enrolled in school in 1966 and 1967
with work experience, by color
Age 15-17 enrolled both years
Change
1966
Dis-
In mean
Change
non-
Total
Dis-
employment
1966 hourly rate of pay
Total
weeks
in mean
employment
number
employment
rate (into
number
unem-
weeks
rate 1
employed
rate 1
unem-
(thousands)
ployed 1
out 1
(percent)
1966
(percent)
ployment
(weeks)
(weeks)
(thousands)
only)1
(percent)
Whites
30.5
316
25.7
5.7
Less than $1.00
456
-0.2
-4.5
$1.00-$1.39
995
-3.0
-3.3
40.0
596
35.6
7.8
394
-1.0
-8.1
31.8
269
35.6
9.7
$1.40 or more
Negroes
Less than $1.00
54
-2.5
-2.4
19.7
44
38.6
12.0
129
-2.1
-6.6
56.3
57
32.5
8.0
$1.00-$1.39
44
-2.3
-.8
23.9
34
29.3
13.0
$1.40 or more
Total
6.4
Less than $1.00
510
-0.4
-4.3
29.4
360
27.2
$1.00-$1.39
1,124
-2.9
-3.6
41.9
653
35.4
7.8
$1.40 or more
438
-1.2
-7.4
30.8
303
35.0
9.9
Age 20-25 not enrolled either year
Whites
Less than $1.00
105
-2.0
-2.3
11.9
93
0.0
$1.00-$1.39
254
.4
-.5
1.7
249
.6
$1.40 or more
3,024
.5
-.9
2.0
2,964
1.0
Negroes
Less than $1.00
77
.7
1.2
4.5
73
3.2
104
3.6
.5
8.6
95
8.6
$1.00-$1.39
$1.40 or more
404
1.2
-.9
6.9
378
3.1
Total
Less than $1.00
182
-0.8
-0.9
8.8
166
1.2
$1.00-$1.39
358
1.2
-.3
3.9
344
2.6
$1.40 or more
3,428
.6
-.9
2.5
3,342
1.2
1 For a definition of these measures, see the footnote to Table 3.5.
67
Table 3.10. Change in mean number of weeks unemployed, change in mean number of weeks out of labor force, 1966
nonemployment rate, and disemployment rates, for selected subgroups by 1966 hourly rate of pay: Men 15-17 years of
age enrolled in school in 1966 and 1967 with work experience
Change in
1966
Total
Dis-
Total
Change in
mean weeks
non-
number
Dis-
Selected subgroup and 1966 hourly rate of pay
employment
number
mean weeks
out of
employment
employed
employment
rate (into
(thousands)
unemployed 1
labor force 1
rate 1
1956
rate
unemployment
(weeks)
(weeks)
(percent)
(thousands)
(percent)
only) 1
(percent)
Those with 11 years or less of education:
Whites:
Less than $1.00
421
+0.3
-5.4
31.3
289
25.4
4.9
$1.00-$1.39
875
-3.0
-3.9
38.9
534
34.4
7.7
Blacks:
Less than $1.00
53
-2.6
-3.4
18.9
43
39.5
20.3
$1.00-$1.39
122
-2.3
-6.9
55.4
55
33.6
8.2
Blacks with little knowledge of world of work:
Less than $1.00
31
0.0
-3.4
18.9
25
36.3
17.7
$1.00-$1.39
71
-4.4
-7.4
50.4
35
33.5
10.1
Blacks residing in the South:
Less than $1.00
38
-3.9
-1.2
10.3
34
40.3
12.0
$1.00-$1.39
68
-1.4
-2.2
61.1
26
35.4
8.9
Service workers (Whites and Blacks):
Less than $1.00
118
-2.9
-3.7
39.5
72
17.9
6.9
$1.00-$1.39
191
-4.7
-7.5
44.3
106
27.3
3.5
, For a definition of these measures, see the footnote to Table 3.5.
Table 3.11. Change in mean number of weeks unemploye d, change in mean number of weeks out of labor force, 1966
nonemployment rate, and disemployment rate, by selected characteristics and 1966 hourly rate of pay: Negro men
20-25 years of age not enrolled in school in 1966 and 1967 with work experience
Change in
Change in
1966
Total
Disemployment
Total
mean weeks
mean weeks
nonemployment
number
Selected characteristic and 1966 hourly rate of pay
rate (into
number
unemployed 1
out of
rate 1
employed
unemployment
(thousands)
(weeks)
labor force 1
(percent)
in 1966
only)
(weeks)
(thousands)
(percent)
Those with no training:
$1.00-$1.39
81
+3.4
-0.2
9.6
73
7.7
$1.40 or more
217
+1.2
+0.4
8.3
199
3.6
Operatives:
$1.00-$1.39
42
+3.2
-0.2
6.2
39
7.9
$1.40 or more
159
+1.2
+1.2
6.9
142
2.8
Wholesale and retail trade employees:
$1.00-$1.39
30
+3.7
0.0
10.0
27
14.8
$1.40 or more
79
+1.5
-5.5
10.1
71
4.2
Those with little knowledge of the world of work:
Less than $1.00
43
-0.2
+2.8
0.0
43
5.4
$1.00-$1.39
62
+3.2
-0.7
6.5
57
$1.40 or more
2.1
158
+1.4
+2.2
7.8
145
Those residing in the South:
0.8
$1.00-$1.39
90
+2.4
+2.4
6.8
83
6.2
$1.40 or more
192
+0.3
+0.3
5.6
182
2.9
1 For a definition of these measures, see footnote to Table 3.5.
CHAPTER IV
Survey of Hiring Requirements and
Youth Employment
The establishment of an absolute minimum
the areas, Atlanta and Detroit, were selected
wage rate by an exogenous source changes ex-
because of the availability of pertinent eco-
isting conditions in the labor market. In terms
nomic data from the Urban Employment sur-
of the demand for labor (a summation of the
veys. The other four large areas were Baltimore
demand of individual establishments), shifts
and Cleveland (in which the average 1968 un-
can be expected depending on the degree to
employment rates for teenagers were among
which the minimum wage affects costs to the
the highest relative to total unemployment in
employer and the degree to which employers
the area), and Milwaukee and Los Angeles (in
can adjust their labor and capital inputs to
which relative teenage unemployment rates
offset cost increases. One of the probable ad-
were among the lowest). The four small areas
justments is to increase the quality of labor
were selected on the basis of wage level (for
commensurate with the increase in costs, that
manufacturing) and State minimum wage law,
is, to obtain more productive employees by rais-
as follows:
ing hiring standards. A special survey was de-
State minimum
No State minimum
signed to examine this aspect of minimum wage
Low wage
Lewiston-Auburn, Maine
El Paso, Tex.
High wage
Battle Creek, Mich
Galveston, Tex.
effects, particularly as it influences the employ-
The distribution of the cities chosen also pro-
ment of teenagers. Those under 20 years of age
usually vie for beginning or entry level jobs
vided wide regional representation.
and the existence of hiring qualifications (many
The survey was conducted by mail question-
of them necessary) have a restrictive influence
naire with telephone followups to nonrespon-
on the labor market. Any raising of hiring re-
dents following two mail requests, and to estab-
quirements further restricts job opportunities
lishments for clarification of responses. Ap-
for teenagers.
proximately 8,000 establishments were included
The survey was conducted in 10 metropolitan
in the sample of which about 5,000 provided
areas selected to meet several criteria: Large
data. The total universe of establishments in
and small areas; high and low teenage unem-
the 10 cities approximated 240,000. Larger
ployment rates relative to total unemployment;
samples were taken of small retail establish-
low and high wage areas; and the presence or
ments to prepare separate estimates for those
absence of State minimum wage laws. Two of
with sales of $200,000 to $300,000 that were
covered and not covered by the Fair Labor
This chapter was prepared by Norman J. Samuels,
Standards Act sales size test.
Office of Wages and Industrial Relations, Bureau of
The survey focused on what the lowest age
Labor Statistics.
and education qualifications for a beginning job
Text tables begin on p. 75.
68
70
ments among the cities. Yet, there is also a mea-
Lowest hourly rates currently paid for a
sure of consistency:
beginning job
1. In a majority of establishments in Detroit,
Cleveland, Auburn, and Galveston, youth seek-
Establishments employing part-time nonoffice
ing full-time office jobs in covered establish-
workers under 18 years of age reported the low-
ments faced no age or education requirements
est average minimum hourly rates of pay. In
for employment, whereas they did in the other
covered establishments the lowest minimum
six cities. Among the noncovered establish-
ranged from an average of $1.51 in El Paso to
ments, only in Atlanta did the majority have
$1.79 in Los Angeles. In the noncovered estab-
some requirement for a beginning job.
lishments the range was from $1.12 in El Paso
2. For part-time office work, the majority of
to $1.71 in Baltimore (table 4.4). The median
establishments in all cities had no age or educa-
difference in city averages between covered and
tion requirements, regardless of coverage.
noncovered lowest minimum rates paid was
3. Teenagers seeking nonoffice jobs were
18.5 cents.
likely to find some age or education requirement
For those under 18 years of age, a full-time
for employment in a majority of covered estab-
nonoffice job generally paid more for a begin-
lishments in all cities except Cleveland and in
ning than the part-time jobs. In fact, the differ-
noncovered establishments in half the cities.
ences in covered establishments ranged from 6
4. For part-time nonoffice jobs, requirements
cents an hour in El Paso to 63 cents an hour in
were less likely to be found A majority of cov-
Detroit. (It must be noted in attempting to
evaluate these data that differences are due not
ered establishments in 7 of the 10 cities not
only to the varying industrial composition
having any requirements and a majority of
among cities but also to the degree establish-
noncovered establishments in 6 of the 10 cities.
ments were actually employing teenagers under
In virtually all cities, minimum education re-
18 years old at the time of the survey.) The
quirements were more frequently required for
median city average minimum rate was $1.92
office workers than for nonoffice workers,
for those under 18 and $2.08 for those 18 and 19
whereas minimum age requirements were less
years old in covered establishments. In noncov-
frequently required. These findings were fairly
ered work places the respective medians were
consistent with respect to coverage or work
$1.67 and $1.72.
schedule. Table 4.2 indicates these differences
Among the small areas (Battle Creek, Lewis-
for full-time workers in covered establishments.
ton-Auburn, Galveston, and El Paso), the aver-
On the other hand, minimum age requirements
age minimums for full-time nonoffice workers
were more frequently found than minimum ed-
in covered establishments were higher in the
ucation requirements for either type of job.
higher wage areas than in the lower wage areas
Where minimum education requirements ex-
(tables 4.5 and 4.6). Among the noncovered es-
isted, high school was usually the qualification
tablishments, the differences were between ci-
ties in States with and without State minimum
noted. In the covered sector, about 50 percent
more establishments reported high school as the
wage laws.
The average minimum hourly rate paid for
minimum qualification for office workers than
full-time office workers in all cities except At-
for nonoffice. (However, as indicated above,
lanta and El Paso was lower than the city aver-
more establishments had education require-
age for full-time nonoffice workers in covered
ments for office than for nonoffice workers.) In
establishments. In noncovered employment the
the noncovered sector, high school was reported
opposite was true, only in Baltimore did office
as the minimum qualification by approximately
workers average less than nonoffice workers
the same proportion of establishments for office
(the difference was one cent). (See table 4.7.)
and nonoffice full-time workers, but by half as
The proportion of establishments in which
many part-time office workers as for part-time
the lowest minimum wage paid was less than
nonoflice workers (table 4.3).
$1.60 an hour varied widely among cities, but
FORD
71
even more widely within cities for type of work
A few establishments in each city reported
and work schedule, and between covered and
lower standards in 1969 than in 1966.
noncovered establishments. Generally, a larger
It was earlier established that the majority of
proportion of establishments paid less than
establishments had no age or education require-
$1.60 for nonoffice than for office work, and for
ments in 1969. To put the data about raising
part-time than for full-time work. The largest
standards in better perspective, table 4.10 indi-
differences appeared to reflect the presence or
cates the proportion of establishments which
absence of FLSA coverage. Los Angeles was the
raised their age requirements since 1966 and
only city where nonoffice workers in uncovered
whose age requirement is now 20 years or more
employment earning less than $1.60 were in a
for a full-time job. These are the establishments
small minority of establishments. Yet even in
which now would exclude all teenagers.
that city, 21 percent of those establishments
No pattern of a consistent relationship exists
paid part-time workers $1.60 an hour. The next
between raising these standards and coverage
lowest percentage of such establishments was
under FLSA. Neither is there a pattern asso-
Atlanta with 41 percent and in all other cities
ciated with city characteristics.
these were the majority of establishments. In
the covered sector the largest proportion of es-
Reasons for raising minimum hiring standards
tablishments in which the rate was below $1.60
for part-time nonoffice work was 47 percent in
Whenever an employer reported in the survey
Battle Creek (table 4.8). There did not appear
that he raised age or education standards for
to be any pattern associated with the high or
any group, he was requested to indicate from a
low wage classification of a city-similar per-
list of reasons which one (s) was important to
centages being reported for different types of
that action. The most common reason given for
work and work schedules for cities with differ-
raising hiring standards was increased costs of
ent general wage levels.
training and hiring. The second most common
reason was the minimum wage.
Raising hiring standards between 1966 and 1969
Those who raised standards citing the mini-
mum wage as a reason (whether the only rea-
The Federal minimum wage was raised and
son or one of several), represented fewer than 1
coverage extended between 1966 and 1969. If
percent of the establishments in 3 out of every 5
we assume that employers will adjust to in-
cases (there are 40 possible cases-10 cities and
creased wage costs by increasing the value of
4 employee groups). The largest percentage
output per unit of labor input, one of the possi-
(4.2) of employers citing the minimum wage
ble methods is to improve the quality of labor
was in El Paso raising standards for full-
by raising hiring standards for entry into em-
time nonoffice employees (table 4.11).
ployment. Age and education are assumed to
The data indicate that in the aggregate few
have a direct relationship to ability to learn and
employers raised minimum qualifications be-
perform efficiently. The survey asked employers
cause of statutory minimum wages. Perhaps
whether their minimum age or education re-
more analytically significant is the proportion
quirements had been raised since 1966. The re-
of those who actually raised standards that
sults are summarized in table 4.9 below.
cited the minimum wage as a reason. Table 4.12
The largest percent of establishments in any
provides that compilation.
city that raised hiring standards was 7.7 per-
cent in El Paso for nonoffice workers. Taking
The influence of the minimum wage in chang-
the largest proportion of establishments that
ing hiring standards is relevant to the situa-
raised standards for any group of workers in
tions in which decisions were made by employ-
each city, the proportion of establishments that
ers to change standards. The minimum wage
did not raise standards ranged between 92.3
did not influence large numbers to revise their
percent in El Paso and 97.3 percent in Milwau-
hiring standards but for those that did, large
kee.
proportions cited the minimum wage as a rea-
FORD
GERALD
72
son for doing so. From table 4.12 there emerges
legal restrictions on hiring for hazardous work.
a difference between the large and small cities
The minimum wage was nearly always the
although some exceptions can be seen. Again,
weakest factor; in all but two cities (and only
some caution must be used in interpretation due
for those under 18 years of age), the majority
to the very small numbers involved in the
of employers who considered the minimum
smaller cities.
wage very important did in fact employ teen-
agers (table 4.14).
Factors affecting decisions to hire teenagers
Change in teenage employment, 1966-69
Whether an employer does or does not have
established qualifications for entry level jobs,
Between 1966 and 1969, relatively few estab-
his decisions to actually hire is influenced by a
lishments reported a change in teenage employ-
number of factors real or assumed. The survey
ment. The largest proportion of establishments
listed nine specific factors and asked employers
reporting such a change was 21 percent in De-
to indicate for each whether the factor was very
troit, nearly equally divided between the num-
important, important, or unimportant in affect-
ber that had higher teenage employment and
ing his decision to hire teenagers. The factors
the number that had lower teenage employment
listed were
1
Believe teenagers not as depend-
in 1969. In all but two cities, teenage employ-
able as other workers; 2 Believe not as well
ment was higher in a larger proportion of es-
trained as other workers;
3
Can hire adults
tablishments than lower.
for the same wage;
4 Legal minimum wage;
In each city, at least half the establishments
5
Military draft; 6 Paper work to get work
that reported lower teenage employment did not
permits
7
Legal restrictions on hiring youth
now employ any teenagers. (See table 4.15.)
for hazardous jobs; 8 Legal restrictions on
hours of work, and
9)
Insurance costs and
Employers' comparison of teenagers with other
availability of insurance.
workers
In no city except El Paso did the majority of
employers consider any one of the factors im-
Employers' attitudes about teenagers as em-
portant in their hiring decisions.
ployees were explored in the survey by a ques-
Where employers did indicate that these fac-
tion which asked, "Have you found that teen-
tors were influential, the most important factor
agers generally are about as good as other work-
in all cities affecting employer's decisions to
ers in similar jobs?" They could respond by
hire teenagers under 18 years old was legal re-
checking (1) better, (2) worse, (3) about the
strictions on hiring youth for hazardous jobs.
same, or (4) don't know. All employers did not
In El Paso and Detroit, training deficiencies
have experience with the employment of teen-
were also cited as very important.
agers SO that a fairly large proportion of "don't
For 18- and 19-year-olds, some employers in
know" responses were received. The answers
half the cities reported the military draft, and
were, perhaps not surprisingly, fairly consist-
in the other five cities they cited undependabil-
ent among the cities studied. On the average
ity and lack of training as the very important
about 4 percent thought teenagers were better,
factors in their hiring decisions.
17 percent thought they were worse, 42 percent
In no city did as many as one-third of the
about the same, and 37 percent didn't know.
employers consider the minimum wage as a
(See table 4.16.)
very important factor for hiring those under or
Those that had lower teenage employment
over 18 years of age. (See table 4.13.)
were more likely to think teenagers were worse
Apparently, insurance costs and availability
employees than those that had higher employ-
was the strongest factor; those employers who
ment. About one-third of the employers who
indicated that it was very important actually
had lower teenage employment thought teen-
employed the fewest teenagers. The other most
agers worse employees than others. The propor-
effective factors were training deficiencies and
tion varied from 22 percent in Detroit to 56
73
percent in Lewiston-Auburn. Among those that
four cities and a smaller proportion in six cities.
had higher teenage employment than in 1966,
The number of teenagers employed was about
the proportion of employers who thought teen-
the same as in 1966 for the vast majority of
agers were worse employees ranged from 7 per-
small retail stores (as it was for all establish-
cent in El Paso to 34 percent in Detroit.
ments). Some covered stores in 7 of the 10 cities
(ranging from 2 percent in Baltimore to 25 per-
Small retail trade establishment
cent in Detroit) reported higher teenage em-
ployment in 1969 than in 1966; in three of the
Among the problems associated with evaluat-
same cities smaller proportions also reported
ing the foregoing data, particularly with re-
lower teenage employment. Among the noncov-
spect to differences due to FLSA coverage, the
ered stores, some in 8 of the cities (all but
major one is the different industrial structures
Cleveland and El Paso) reported higher teenage
of cities and of the minimum wage coverage
employment, and in half the cities some re-
within cities. To offset these problems, special
ported lower employment. (See table 4.18.)
samples were selected of small retail trade es-
Employers' attitudes about teenagers as
tablishments, and data for those with sales of
workers have a real influence on their willing-
between $200,000 and $300,000 were tabulated
ness to hire and probably on the wages they are
separately. These establishments were further
willing to pay. When the data for the small re-
divided between those with sales under
tail stores were tabulated for these attitudes,
$250,000 and $250,000 or more. Thus, examina-
interesting differences were revealed between
tion of a very homogenous group of employers
covered and noncovered stores. In all but 3
was possible with coverage under FLSA as the
cities, none of the covered stores reported they
only (major) differentiating factor.
thought teenagers were better workers; among
Although there were variations within cities,
the noncovered stores, in only 3 cities was this
overall the proportion of small retail establish-
true. Conversely, in 6 of the 10 cities, a larger
ments that employed teenagers was not differ-
proportion of covered stores than noncovered
ent from all establishments. (See table 4.17.)
thought teenagers were worse employees than
In five of the cities, a larger proportion of small
others in similar work. Among the employers
retailers employed teenagers; in one city an
who thought teenagers worse, only in Detroit
equal proportion; and in four cities a smaller
did any who were covered by FLSA report
proportion.
lower employment since 1966, and only in De-
Among the small retail stores, a larger pro-
troit, Los Angeles, and El Paso did any noncov-
portion of covered stores employed teenagers in
ered employers report lower employment.
NOTE
For each of the ten areas covered in the survey of employer hiring
requirements (Atlanta, Detroit, Cleveland, Baltimore, Milwaukee, Los
Angeles, Battle Creek, Auburn, Galveston, El Paso), the following
tabulations are available from the Bureau of Labor Statistics on request.
Table 1. Percent of Covered and Noncovered Establishments by Age and
Education Qualifications for Full- and Part-Time Office and Nonoffice
Employees, Spring 1969
Table 2. Percent of Covered and Noncovered Establishments by Lowest
Hourly Wage Rate Paid for a Beginning Job by Age Qualification for
Full- and Part-Time Office and Nonoflice Employees, Spring 1969
74
Table 3. Percent of Covered and Noncovered Establishments by Lowest
Hourly Rate Paid for a Beginning Job by Educational Qualification for
Full- and Part-Time Office and Nonoffice Employees, Spring 1969
Table 4. Percent of Covered and Noncovered Establishments by Changes
in Age Qualifications Since 1966 and Current Age Qualification by Full-
and Part-Time Office and Nonoffice Employees, Spring 1969
Table 5. Percent of Covered and Noncovered Establishments by Change
in Education Qualification Since 1966 and Current Qualification for Full-
and Part-Time Employees, Spring 1969
Table 6. Number of Covered and Noncovered Establishments Which
Raised Either Age or Education Qualifications Since 1966 by Reason for
Change and Relative Importance for Full- and Part-Time Office and Non-
office Employees, Spring 1969
Table 7. Number of Covered and Noncovered Establishments Which
Lowered Either Age or Education Qualifications Since 1966 by Reason
for Change and Relative Importance for Full- and Part-Time Office and
Nonoffice Employees, Spring 1969
Table 8. Percent of Covered and Noncovered Establishments by Factors
Affecting Employment of Teenagers and Their Relative Importance for
Selected Age Groups, Spring 1969
Table 9. Percent of Covered and Noncovered Establishments by Factors
Affecting Employment of Teenagers Considered Very Important and
the Proportion of Teenagers Employed in These Establishments for
Selected Age Groups, Spring 1969
Table 10. Percent of Covered and Uncovered Small Retail Establish-
ments 1 by the Percent of Full- and Part-Time Employees of Selected Age
Groups in These Establishments, Spring 1969
Table 11. Percent of Establishments by the Change in Teenage Employ-
ment Between 1966 and 1969 and the Percent Employed in 1969, Spring
1969
Table 12. Percent of Establishments by Change in Teenage Employment
Between 1966 and 1969 and Evaluation of Teenagers Compared with
Other Employees in Similar Jobs, Spring 1969
75
Table 4.1. Proportion of establishments with no age or
Table 4.3. Percent of covered and noncovered establish-
education requirements for beginning jobs, by city, type
ments reporting high school as the minimum education
of job, work schedule, and FLSA coverage
qualification, by city, type of work, and work schedule
[In percent]
Office
Nonoffice
Office
Nonoffice
City
Full-time
Part-time
Full-time
Part-time
City
Full-time
Part-time
Full-time
Part-time
Covered
Not
Covered
Not
Covered
Not
Covered
Not
covered
covered
covered
covered
Covered
Not
Covered
Not
Covered
Not
Covered
Not
covered
covered
covered
covered
Atlanta
49
32
29
19
20
21
13
15
Detroit
40
12
24
10
29
26
17
25
Atlanta
35
48
59
74
41
52
58
69
Cleveland
43
23
25
10
28
22
18
17
Detroit
55
74
71
87
41
37
59
49
Baltimore
54
23
35
16
28
36
20
32
Cleveland
55
66
68
86
51
51
64
52
Milwaukee
39
23
27
15
28
29
19
26
Baltimore
34
65
58
79
30
40
51
50
Los Angeles
47
23
33
24
29
22
22
26
Milwaukee
49
70
67
81
46
51
58
50
Battle Creek
44
19
29
11
32
23
24
26
Los Angeles
38
64
53
70
33
39
46
40
Auburn
35
12
26
8
27
16
20
14
Battle Creek
40
70
60
86
25
38
41
46
Galveston
37
19
20
8
19
16
17
8
Auburn
51
84
62
86
37
52
47
48
El Paso
43
33
30
22
26
19
32
22
Galveston
52
78
73
89
45
56
61
70
El Paso
45
58
64
71
38
38
52
55
Table 4.2. Percent of covered establishments with mini-
Table 4.4. Average hourly minimum rate paid in estab-
mum education and minimum age requirements, by city
lishments employing those under 18 years old for
for full-time office and nonoffice jobs
part-time nonoffice jobs, by coverage
Education
Age
City
Covered
Not covered
City
Office
Nonoffice
Office
Nonoffice
Atlanta
$1.64
$1.54
Detroit
1.72
1.53
Cleveland
1.78
1.40
Atlanta
57
30
64
60
Baltimore
1.65
1.71
Detroit
43
33
46
60
Milwaukee
1.68
1.36
Cleveland
45
39
45
48
Los Angeles
1.79
1.64
Baltimore
60
47
66
70
Battle Creek
1.61
1.35
Milwaukee
41
34
51
55
Auburn
1.60
1.42
Los Angeles
51
32
61
66
Galveston
1.74
1.61
Battle Creek
50
39
61
76
EI Paso
1.51
1.12
Auburn
38
32
49
65
Galveston
39
24
48
55
EI Paso
48
41
55
63
Table 4.5. Average minimum hourly rates paid for full-time nonoffice jobs in four small cites, by city general wage
level, State minimum wages, age, and coverage
With State minimum
Without State minimum
City
Covered
Not covered
Covered
Not covered
Under 18
18-19
Under 18
18-19
Under 18
18-19
Under 18
18-19
Battle Creek (high wage)
$1.91
$2.10
$1.51
$1.79
Lewiston (low wage)
1.79
1.88
1.66
1.59
Galveston (high wage)
$1.93
$1.97
$1.34
$1.4
El Paso (low wage)
1.57
1.67
1.31
1.3
RALD
76
Table 4.6. Ratio of average minimum hourly rates paid
Table 4.9. Percent of establishments that raised hiring
for full-time nonoffice jobs in noncovered establishments
standards between 1966 and 1969, by city, type of work,
to covered establishments, by city general wage level and
and work schedule
State minimum wage
Office
Nonoffice
[Inpercent]
City
Full-time
Part-time
Full-time
Part-time
With State minimum
Without State minimum
Atlanta
2.9
1.2
5.7
1.8
City
Ratio of noncovered
Ratio of noncovered
Detroit
2.0
1.4
3.0
2.0
to covered
to covered
Cleveland
3.0
1.2
3.6
2.5
Baltimore
4.6
2.3
4.0
2.9
Milwaukee
2.0
1.0
2.0
2.7
Under 18
18-19
Under 18
18-19
Los Angeles
3.7
2.3
3.0
2.0
Battle Creek
1.7
0.7
3.5
3.5
Auburn
3.7
1.0
4.9
2.8
Battle Creek (High wage)
79
85
Galveston
3.2
1.0
3.0
2.6
Lewiston (Low wage)
93
85
El Paso
6.1
3.3
7.7
3.7
Galveston (High wage)
69
71
El Paso (Low wage)
83
83
Table 4.7. Average minimum hourly rate paid for
Table 4.10. Percent of establishments with minimum
full-time work, by city and coverage
age qualifications of 20 years or more for full-time work
that raised age qualifications since 1966, by city, type of
Covered establishments
Noncove. ed establishments
work, and coverage
City
Office
Nonoffice
Office
Nonoffice
Office
Nonoffice
Atlanta
$2.02
$1.85
$1.95
$1.77
City
Covered
Not
Covered
Not
Detroit
2.10
2.40
2.00
1.89
covered
covered
Cleveland
1.99
2.30
2.06
1.78
Baltimore
1.85
1.90
1.80
1.81
Milwaukee
2.09
2.26
1.95
1.76
1.99
Atlanta
1
7
29
3
Los Angeles
2.13
2.20
2.15
Detroit
4
11
3
4
Battle Creek
1.85
2.14
1.78
1.66
Cleveland
11
1
7
7
Auburn
1.71
1.82
1.74
1.65
Baltimore
9
6
11
5
Galveston
1.77
1.95
1.73
1.38
Milwaukee
7
9
10
9
El Paso
1.66
1.63
1.59
1.38
Los Angeles
9
12
4
4
Battle Creek
1
0
2
0
Auburn
6
33
4
0
Galveston
5
21
0
8
El Paso
13
8
14
7
Table 4.8. Percent of establishments in which the mini-
Table 4.11. Percent of all establishments citing the
mum hourly rate paid was less than $1.60 an hour, by
minimum wage as a reason for raising age or education
city, type of work, work schedule, and coverage
requirements, by city, type of work, and work schedule
Covered
Not covered
Office
Nonoffice
City
City
Office
Nonoffice
Office
Nonoffice
Full-time
Part-time
Full-time
Part-time
Full-
Part-
Full-
Part-
Full-
Part-
Full-
Part-
Atlanta
0.5
0.3
0.5
0.5
1.2
time
time
time
time
time
time
time
time
Detroit
.1
.8
.8
Cleveland
(1)
.6
.7
Baltimore
1.0
is
1.4
.9
Atlanta
3
4
10
15
1
10
24
41
Mitwaukee
.9
.4
8'
.1
Detroit
10
21
13
25
10
36
37
51
Los Angeles
.6
(1)
is
.4
Cleveland
13
13
10
18
3
25
26
65
Battle Creek
1.0
.2
1.8
1.8
Baltimore
10
9
8
16
20
22
41
56
Auburn
.6
1.0
3.1
1.6
Milwaukee
5
13
7
28
16
36
46
59
Galveston
1.7
.2
2.3
1.8
10
21
EI Paso
1.3
1.6
4.2
2.2
Los Angeles
1
3
3
9
1
4
Battle Creek
11
19
21
47
26
31
49
71
Auburn
5
8
9
22
10
12
21
62
Galveston
9
11
19
32
19
37
57
61
1 Less than .05 percent.
El Paso
11
12
20
26
29
31
49
71
FORD
77
Table 4.12. Percent of establishments that raised age
Table 4.15. Percent of establishments by change in
or education requirements which cited the minimum wage
teenage employment, 1966-69, by city
as a reason, by city, type of work, and work schedule
Change in teenage employment
City
Office
Nonoffice
City
Higher
Lower
Same
Full-time
Part-time
Full-time
Part-time
Atlanta
10.9
6.1
83.0
Detroit
10.5
10.9
78.6
Atlanta
17
25
8
27
Cleveland
7.2
5.5
87.3
Detroit
5
57
26
60
Baltimore
9.1
8.0
82.9
Cleveland
6
16
28
Milwaukee
16.1
5.2
78.7
Baltimore
21
39
35
31
Los Angeles
7.6
5.9
87.5
Milwaukee
45
40
40
37
Battle Creek
11.8
7.6
80.2
Los Angeles
16
6
30
20
Auburn
6.6
5.6
87.8
Battle Creek
58
28
51
51
Galveston
3.7
6.2
90.1
Auburn
16
75
63
57
El Paso
5.0
4.4
90.6
Galveston
53
20
76
69
El Paso
21
48
54
59
Table 4.16. Percent of establishments by attitude about
teenagers as employees, by city
Table 4.13. Proportion of covered establishments re-
City
Better
Worse
Same
Do not know
porting the minimum wage as a factor in decision to hire
Atlanta
4
18
43
36
teenagers, by city, and age group
Detroit
2
16
46
36
Cleveland
4
12
42
43
Baltimore
4
16
41
39
Under 18
18 and 19
Milwaukee
7
15
37
41
Los Angeles
6
20
35
40
City
Battle Creek
3
19
43
35
Very
Important
Not
Very
Important
Not
Auburn
2
22
47
30
important
important
important
important
Galveston
4
20
46
31
El Paso
5
15
42
39
Atlanta
14
21
65
9
18
73
Detroit
16
24
60
11
18
71
Cleveland
10
17
73
9
16
75
Baltimore
10
20
70
9
18
73
Table 4.17. Percent of establishments employing teen-
Milwaukee
11
16
73
8
11
81
Los Angeles
8
14
78
6
11
83
agers, small retail stores by FLSA coverage, and all
Battle Creek
23
23
54
13
19
67
Auburn
20
28
52
13
31
56
establishments, by city
Galveston
19
24
57
13
20
67
El Paso
31
25
44
25
28
47
Small retail trade establishments
City
All estab-
lishments
All
Covered
Not covered
Atlanta
52
44
37
46
Detroit
48
61
75
57
Table 4.14. Covered establishments reporting the mini-
Cleveland
47
47
33
54
Baltimore
47
65
67
64
mum wage as a very important factor and the proportion
Milwaukee
55
39
42
37
Los Angeles
44
48
43
52
of teenagers employed, by age
Battle Creek
49
54
44
54
Auburn
56
59
50
71
Galveston
40
37
32
39
Percent of teenagers employed
El Paso
43
38
46
34
City
Under 18 years
18 and 19 years
Table 4.18. Percent of small retail trade establishments
Atlanta
49
51
Detroit
61
50
reporting higher and lower teenage employment, by
Cleveland
70
73
Baltimore
60
61
coverage and city
Milwaukee
62
63
Los Angeles
48
50
Battle Creek
85
68
Higher
Lower
Auburn
79
66
Galveston
51
53
City
EI Paso
52
55
Covered
Not
Covered
Not
covered
covered
Atlanta
33
Detroit
25
4
10
28
Cleveland
7
Baltimore
2
3
Milwaukee
17
26
10
Los Angeles
11
14
Battle Creek
19
4
8
8
Auburn
10
13
9
Galveston
4
I Paso
4
2
CHAPTER V
Employment Service Local Office Experience
in Serving Teenagers During June 1969
During June 1969, the Office of Technical
Summary
Support (OTS), U.S. Training and Employ-
ment Service, Manpower Administration, con-
Not one of the local offices of the Employment
ducted a survey of Employment Service
Service (ES) cited the recent hike in the mini-
(ES) local office experience in serving teenag-
mum wage or the extension of coverage under
ers as part of the overall study of the relation-
the Federal Fair Labor Standards Act as re,
ship between teenage employment and mini-
sponsible for the change between June 1966 and
mum wages. Responses to many questions were
June 1969 in the total number of nonfarm job
based on the judgment of the local office man-
openings available to teenagers, or which speci
ager and his staff as a result of their experience
fied a minimum age of 16-19 years of age or 20
and knowledge acquired in helping teenagers
years old and over. Only about one-fourth of the
find jobs. In some areas, replies to some ques-
104 ES local offices in the 19 areas responding
tions were supplied by only the Youth Oppor-
to this question reported that since June 1966
tunity Center offices.
there had been a decrease in the proportion of
The data obtained on local office activity re-
openings which were available to teenagers or
lated to the June 1969 reporting period while
which specified a minimum age of 16-19 years
other information is based on recollections and
of age, or that there had been an increase in the
experience of local office staff for longer periods
share of openings which specified a minimum
of time such as fiscal year 1969. The areas cov-
age of 20 years old and over.
ered by this study consist of 22 SMSAs and
The most important reasons given by the ES
the Battle Creek, Mich., labor area. Ten of the
local offices reporting such changes were of an
areas were those in which the BLS conducted
administrative nature, for example, phasing out
its employer surveys; 13 additional SMSAs
Youth Employment Service locations, transfer
were selected in such a manner that different
of youth job orders to Youth Opportunity Cen-
size areas would be represented from all regions
ters, installation of Job Bank operations, Com-
of the United States.
munity Action Agencies assuming responsibil-
This chapter was prepared by Irvin F.O. Wingeard,
ity for youth placement, and inception of
Office of Technical Support. The author would like to
NAB-JOBS and government training and hir-
express his appreciation to Julia Mash, Robert Ains-
ing programs.
worth, and Philip Goldstein for their aid in the de-
The reasons rated as most prominent among
velopment of this study.
Text footnotes begin on p. 86.
the difficulties encountered by ES local offices in
78
79
placing teenagers were (a) "legal restrictions
the ES local offices was that the following three
on hours of work, hazardous work, or other
reasons were the most important:
working conditions" and "employers' hiring
a. Teenagers lack appropriate training, experience,
specifications with respect to age exclude teen-
and/or education for the jobs available.
agers" 16-17 year olds on full-time and part-
b. Legal restrictions on the hours of work, hazard-
time jobs, (b) "uncertainty over the draft
ous work, or other working conditions for teen-
makes employers reluctant to hire teenagers"
agers.
c. Teenagers are not reliable and/or are imma-
18-19-year-old males for full-time jobs; (c)
ture.
"high labor turnover among teenagers," "em-
ployers believe teenagers are not reliable," and
These reasons also were cited as the most im-
"hiring specifications of employers with respect
portant for part-time year-round jobs but the
to education and experience are so high that
rank order of importance was reversed.
most teenagers are excluded" for full-time and
Uncertainty over the draft was the fourth
part-time jobs for both 16-17 and 18-19 year-
most important reason for not hiring teenagers
olds; and (d) "Unwillingness of teenagers to
for full-time work, whereas the inability to
accept wages usually offered for jobs they are
work hours needed by employers because of
qualified to take" for 18-19 year-olds for both
school or other reasons was the fourth most im-
full-time and part-time jobs.
portant reason teenagers could not get part-
The level of the minimum wage was not rated
time jobs.
as an important reason for ES local office diffi-
About 43 percent of the ES offices were of the
culty in placing teenagers in either full-time or
opinion that employers would hire appreciably
part-time year-round jobs during fiscal year
more 16-17-year-olds if it were legally possible
1969. However, this reason was somewhat more
to pay such youngsters a wage below the Fed-
important for part-time work than it was for
eral minimum. However, only 25 percent of the
full-time jobs. This reason ranked near the low-
offices believed this to be true for 18-19-year-
est in importance for 16-19 year-olds for full-
old youth.
time jobs and about midway in order of import-
Among the offices which thought employers
ance for part-time jobs.
would hire appreciably more teenagers under a
It was mentioned in only two areas (Balti-
lower minimum wage, 90 percent believed that
more and Nashville) as one of the reasons given
a reduction of less than 40 cents in the mini-
by employers for not wanting to hire teenagers
mum wage would be necessary to achieve this
for full-time and part-time year-round jobs. A
end. Moreover, these offices were about equally
third area (Atlanta) also cited this as one em-
divided between 20-39 cents and less than 20
ployer reason for reluctance to hire teenagers
cents as the required reduction. These offices
for part-time year-round jobs. In all three
also believed that employment of teenagers
areas, however, this reason ranked no higher
would most likely increase in the service (ex-
than third or fourth in importance.
cluding domestic service), sales, clerical, and in-
Teenagers received better than one-fourth of
dustrial occupational groups in the order of im-
the 71,000 nonfarm placements made in the 23
portance given, and that the retail trade; serv-
surveyed areas during June 1969-about the
ice (excluding private households) ; wholesale
same proportion that teenagers represented in
trade; and finance, insurance, and real estate
the active file of applicants at the end of June.
industries would be most important in the order
The industrial, service (excluding domestic),
given, as sources of additional teenage employ-
and clerical categories were the three occupa-
ment.
tional groups in which teenagers were most fre-
About two-fifths of the ES offices were of the
quently placed in full-time and part-time year-
opinion that lowering the Federal minimum
round work during fiscal year 1969.
wage for teenagers would have an appreciably
In the areas reporting on the reasons given
adverse effect on the hiring of other groups of
by employers for not wanting to hire teenagers
workers for full-time and part-time jobs in the
for full-time year-round jobs, the consensus of
retail trade and service (excluding private
FORD
80
households) industries. Concerning the other
ders stipulating a minimum age of 20 years old
five industry groups, the offices were over-
or more.
whelmingly of the opinion that the lowering of
In 4 of the 23 areas reporting, the sum of
the minimum wage for teenagers would not
the total openings available to teenagers was 25
have an appreciably adverse effect on the hiring
percent or less of the total openings received; in
of other workers.
three areas it ranged from 25-50 percent; in 10
The offices which indicated that the lowering
areas, from 50-75 percent; and in the remain-
of the minimum wage for teenagers would have
ing six areas, 75 percent or more of all openings
an adverse effect on the hiring of other workers
received during the month of June 1969 were
believed that the service (excluding domestic
available to teenagers.
service), sales, industrial, and clerical occupa-
Job openings unfilled at the end of June 1969
tional groups would be most likely affected.
These offices also were of the opinion that the
Of the 63,400 nonagricultural job openings
following groups of workers would be most ad-
remaining unfilled at the end of June 1969, in
versely affected in the order given: Negro
20 areas, 53 percent had no minimum age desig-
women, 40-64 years old; Negro men, 40-64
nation. Of the 47 percent which did have a
years old; white men 40-64 years old; white
minimum age specified, nearly 60 percent were
women, 40-64 years old; and Negro men, 20-24
unavailable to teenagers because the minimum
years old. Minorities other than Negroes were
acceptable age specified was 20 years old or
cited in a few areas as likely to be adversely
older. Over 40 percent of all of the unfilled non-
affected.
agricultural job openings were available to
teenagers, including all those for which appli-
Job openings received during month of June 1969
cants in the 16- to 19-age group were acceptable
plus those with no minimum age specification
Over 100,000 nonagricultural job openings
which were considered by the local offices as
were received in June 1969 by local offices of the
available to teenagers.
Employment Service in the 23 areas surveyed.
Twenty areas reported unfilled openings at
About 60 percent of those openings had no min-
the end of June. In four areas the openings
imum age specified while nearly 40 percent did.
available to teenagers did not exceed 25 percent
Of those openings with a minimum age specifi-
of the total unfilled openings; in six areas they
cation, 45 percent precluded the referral of
ranged from 25-50 percent; in seven areas,
teenagers since the minimum age designated
from 50-75 percent; and in three areas, from
was 20 years old or older.
75-100 percent.
Of the total nonagricultural openings re-
Change in the share of job openings available to
ceived, 55 percent were available to teenagers.
teenagers since June 1966
These openings consisted of those jobs which
specified an age minimum within the 16- to 19-
About one-fourth of the 104 ES offices in 19
year-old age interval plus 55 percent openings
areas reported that the proportion of nonagri-
which had no minimum age specification but
cultural openings received by the offices which
were considered by the local offices to be availa-
specified a minimum age of 20 years old or older
ble to teenagers. The percent of openings avail-
had increased since June 1966. This was prior
able to teenagers varied widely from area to
to the recent increase and coverage extension in
area, ranging from 7 percent in Baltimore to 99
the Federal minimum wage. More than two-
percent in Wichita. The variation depends, in
thirds of the offices reported no change in the
part on the legal prohibitions against employ-
share of such openings and less than one-tenth
ment of teenagers on some jobs or work shifts,
reported a decrease. Correspondingly, about
or the nature of the industry and occupational
one-fourth of the local offices indicated that
mix of the openings in the area. It is likely, for
since June 1966 there had been a decrease in the
example, that an area abounding in extractive
proportion of openings received which were
and primary industries would receive more or-
available to teenagers, as well as in the share of
FORD
81
such openings which specified a minimum age
crease in the percent of openings specifying a
within the 16- to 19-year-old age interval. One-
minimum age of 20 years or older were changes
sixth of the offices stated that an increase had
of an administrative nature, for example, phas-
occurred in the share of such openings since
ing out of Youth Employment Service locations
June 1966 and nearly three-fifths reported no
since 1966, referral of youth job orders to
change.
Youth Opportunity Centers (YOC's), the Job
In only two of the 19 areas reporting were
Bank Operation, and an upward surge in the
the local offices unanimous in indicating an in-
economy which caused an increase in hiring of
crease in the proportion of openings with a
older college youths. Other reasons mentioned
minimum age specification of 20 years old or
were Job Opportunities in the Business Sector
older since June 1966. In only one area was
-National Alliance of Businessmen (JOBS-
there unanimity that there had been a decrease
NAB) operations, apprehension about insur-
in the share of openings available to teenagers
ance risks with regard to hazardous jobs caus-
and in the fraction of openings designating a
ing employers to demand older workers, and
minimum age within the 16- to 19-year-old age
government training and hiring programs.
interval.
In the opinion of the local offices, the most
On the other hand, in 10 areas the offices
important reasons for a decrease in the percent
were unanimous in reporting that a decrease or
of openings for teenagers were discontinuance
no change had occurred since June 1966 in the
of Youth Employment Service outstations and
share of the openings specifying an age mini-
direct referrals to YOC's. Other frequently
mum of 20 years old or more. Moreover, in
mentioned reasons were community agencies
seven areas there was corresponding unanimity
assuming placement services for youth, employ-
among the officers to the effect that there was
ers' beliefs that young workers are unstable,
either no change or an increase in the percent
teenagers getting their own jobs through ave-
of openings available to teenagers, and in the
nues other than the employment service,
proportion of openings specifying a minimum
younger teenagers lack adequate transporta-
acceptable age within the 16- to 19-age interval.
tion, and decline in demand for seasonal non-
In the remaining areas there were mixed
agricultural workers.
views among the offices concerning the changes
which occurred since June 1966 in the shares of
Nonagricultural placements made during June
the job openings which fell into the three cate-
1969
gories referred to above. In such areas, how-
ever, only about one-third of the offices indi-
Around 71,000 nonagricultural placements
cated an increase in the proportion of openings
were made during June 1969 by the ES offices
restricted to applicants 20 years of age or older,
in the 23 surveyed areas. This is 14 percent of
and a like fraction of the offices reported a de-
the nonagricultural placements made during
crease in the share of openings available to
that month by all ES offices throughout the
teenagers and in the percent of openings speci-
country.
fying a minimum age within the 16- to 19-age
Teenagers got more than one-fourth of the
interval.
nonagricultural placements made in the sur-
Of the offices experiencing a change in total
veyed areas. This is about the same proportion
job openings specifying ages 16-19, total open-
of teenage applicants in the active file. Slightly
ings available to teenagers, or openings for the
more than three-fifths of the teenage place-
20 years of age or older groups, not one cited
ments were received by 18- to 19-year-old
the increase in the minimum wage under the
youths which is in line with their proportion in
FLSA since 1966 as responsible for the change.
the active file. Male teenagers fared much bet-
The reasons given by the local offices for the
ter than female teenagers since they received
changes in the openings for the above men-
about three-fifths of the placements but only
tioned groups were somewhat general.
constituted slightly more than half of the teen-
The most important reasons cited for the in-
age applicants.
FORD
82
Los Angeles made about 25 percent of the
Most frequent reasons given by employers for not
total nonagricultural placements in the 23 sur-
wanting to hire teenagers as reported by em-
veyed areas, but only 18 percent of its place-
ployment service local offices
ments were received by teenagers. The propor-
tion of placements going to teenagers ranged
FULL-TIME YEAR-ROUND JOBS. The consensus of
from about 20 percent in the six areas of Buf-
local offices in 16 areas reporting on the reasons
falo, Hartford, Los Angeles, Milwaukee, New
given by employers for not wanting to hire
Orleans, and Salt Lake City to 50 percent in
teenagers 16-19 years of age in year-round
Cleveland. In eight areas the teenage proportion
full-time employment was that "teenagers lack
of placements exceeded 30 percent. (See table
appropriate training, experience, and/or educa-
5.2.)
tion for the jobs available." (See table 5.5.)
The minimum wage was cited by only two
Most important occupational groups in which
areas, Baltimore and Nashville. This reason
teenagers were placed
was the fourth most important mentioned in
Nashville along with "teenagers are not reliable
The local offices were asked to rank in order
and/or are immature," "high labor turnover
of importance the three most important occupa-
for teenagers," "union contract provisions,"
tional groups in which teenagers were placed.
and the "unwillingness of teenagers to accept
The rank order for both full-time and part-time
wages for jobs they are qualified to take."
work was as follows:
Although Baltimore reported the minimum
1. Industrial
wage as being one reason for not hiring 16-19
2. Service, excluding domestic
year-old youngsters, it was considered the least
3. Clerical
important reason in that area along with "State
4. Sales
laws require too much paperwork." Overall,
5. Domestic service
however, the "unwillingness of teenagers to
6. Farming, fishery, forestry, and related occupa-
tions
accept wages usually offered for jobs which are
7. Professional, technical, managerial
open to them" received a higher ranking than
the minimum wage.
Of the 109 offices responding in 21 areas, 70
The second most frequently mentioned reason
percent ranked the industrial occupations as
was "legal restrictions on the hours of work,
most important for the placement of youngsters
hazardous work, or other working conditions of
in full-time jobs. In nine of the areas, local
teenagers." Third, and of nearly equal import-
offices were unanimous in their opinion. These
ance, was "teenagers are not reliable and/or are
areas were Lewiston-Auburn, Detroit, Battle
Creek, Minneapolis-St. Paul, Milwaukee, Wich-
immature." "Uncertainty over the draft" was
ita, El Paso, Galveston-Texas City, and Seattle.
the fourth most important reason-this, of
With the exception of one area, at least one of-
course, was only relevant to boys. No impedi-
fice in all areas indicated industrial occupations
ment to employment was frequently mentioned
as most important. Salt Lake City was the dis-
in specific reference to girls although two areas,
senting area with its one responding office nam-
Buffalo and Seattle, cited "impending mar-
ing domestic service occupations as most im-
riages, including pregnancy" as important. This
portant. (See table 5.3.)
reason, however, was not considered of prime
Of the 69 offices responding in 19 areas, 48
importance in these two areas.
percent ranked the industrial occupations as the
Some other less frequently mentioned reasons
most important for placement of youngsters in
for not hiring teenagers included: "high labor
part-time jobs during fiscal year 1969. In five of
turnover among teenagers;" "insurance prob-
the areas local offices were unanimous in their
blems including increased cost of insurance or
opinion. The five areas were Lewiston-Auburn,
employers unable to obtain insurance covering
Detroit, Wichita, El Paso, and Galveston-Texas
teenage employment;" "the high cost of hiring
City. (See table 5.4.)
and training teenagers;" "employers prefer
0768
83
more experienced, mature, and/or older per-
reasons listed on a questionnaire as very impor-
sons;" and "the inability of teenagers to work
tant; important; or unimportant, irrelevant, or
regular hours because of school."
not true. The consensus was that the level of the
minimum wage has not been an important rea-
PART-TIME YEAR-ROUND JOBS. The reasons
son for the difficulty in placing teenagers in
given by employers in 14 areas for not wanting
either full-time or part-time jobs. However, the
to hire teenagers for part-time year-round
level of the minimum wage was considered a
jobs were, in declining order of importance,
more important deterrent for hiring teenagers
"teenagers are not reliable and/or are im-
in full-time jobs than in part-time. (See tables
mature;" "legal restrictions on hours or type of
5.7 to 5.10.)
work;" and "teenagers lack training, experi-
Overall, when compared to the relative im-
ence, and/or education." These reasons are the
portance given other reasons, the "level of the
same as those cited as impediments to full-time
minimum wage has caused employers to seek
employment except that their rank order of im-
older, more experienced workers for jobs" rea-
portance is reversed. "The inability to work
son ranked near the bottom for both the 16-17
hours needed by employers because of school or
and 18-19-year-olds for full-time jobs and
other reasons" was found to be the fourth most
about mid-way for part-time jobs. Not one area
frequently listed reason. (See table 5.6.)
was of the unanimous opinion that this reason
As was reported with respect to full-time
was very important as a deterrent in placing
year-round employment, only a few areas-At-
18- to 19-year-old youngsters on full-time or
lanta, Baltimore, and Nashville-indicated that
part-time jobs. For the 16-17 year-olds, the one
the minimum wage was a barrier to employ-
office reporting in the Salt Lake City area and
ment. Baltimore and Nashville stated the mini-
both offices reporting in the Galveston-Texas
mum wage was important although Baltimore
City area were of the opinion that the level of
placed it in fifth place. As with full-time work,
the minimum wage was very important for
"teenage unwillingness to accept current wages
full-time placements; only the two offices in the
for jobs they are qualified to take" received a
Galveston-Texas City area were of this opinion
much higher ranking overall for part-time than
for part-time jobs.
did "minimum wage impediments" to their em-
There was general agreement that for year-
ployment.
round full-time and part-time jobs, two reasons
Six areas-Atlanta, Birmingham, Cleveland,
rated high in importance for both age groups:
Galveston, Oklahoma City, and Seattle-said
"employers believe teenagers are not reliable"
that the most frequent barrier to teenage em-
ployment is that they are not reliable and/or
and "high labor turnover among teenagers."
are immature. "Legal restrictions" were given
However, the most important reason cited for
as most important for five areas-Battle Creek,
the 16-17-year olds was "legal restrictions on
Buffalo, Detroit, Los Angeles, and Nashville.
hours of work, hazardous work, or other work-
Two areas, El Paso and Milwaukee, mentioned
ing conditions for teenagers"-this was true
as most important "teenagers' lack of training,
for both full-time and part-time work. For
experience, and/or education." The remaining
those 18-19 years of age, "uncertainty over the
area, Baltimore, indicated the leading impedi-
draft makes employers reluctant to hire teenag-
ment was "teenagers' inability to work hours
ers" was the most important reason cited for
needed by employers because of school or other
full-time jobs; whereas for part-time jobs the
reasons."
most important reason was "high labor turn-
over
Local office reasons for difficulty in placing
Other reasons given a high rating in import-
teenagers on jobs
ance for the 16-17 year-olds for both full-time
and part-time jobs were: "employers' hiring
Based on their experience during fiscal year
specifications with respect to age exclude teen-
1969, local offices were asked to rate each of 12
agers," and "hiring specifications of employers
FORD
84
with respect to education and experience are SO
offices in four of these five areas persisted in
high that most teenagers are excluded." For the
this view regarding the 18- to 19-year-old boys
18-19 year-olds, "unwillingness of teenagers to
and girls, the 12 offices in the Detroit area took
accept wages usually offered for jobs they are
a contrary stand with respect to the older teen-
qualified to take" and "hiring specifications of
agers.
employers with respect to education and experi-
The 7 of the 21 areas, local offices (21) were
"
ence
were other reasons rated high for
unanimous in their view that a lowering of the
both full-time and part-time work.
Federal minimum wage would not result in the
Only a few reasons were mentioned by the
hiring of appreciably more teenagers of either
local offices that did not appear on the question-
sex or of either age group. These seven areas
naire. For both the 16-17 and 18-19 year-olds,
were Battle Creek, Cleveland, Denver, El Paso,
one office in the Atlanta area was of the opinion
Milwaukee, Minneapolis-St. Paul, and Nash-
that "transportation" was very important and
ville.
one office in the Cleveland area mentioned "ina-
Among the offices which thought employers
bility to pass company tests" as a very impor-
would hire appreciably more teenagers under a
tant reason for the difficulty in placing teenag-
lower minimum wage, 90 percent believed that
ers in both full-time and part-time jobs. Two
a reduction of less than 40 cents in the mini-
offices in the Oklahoma City area cited "poor
mum wage would be necessary to achieve this
appearance" as very important for both full-
end. Moreover, those offices were about equally
time and part-time placement, and one office was
divided between 20-39 cents and less than 20
of the opinion that "immaturity" was very im-
cents as the required reduction. This finding
portant for both age groups but only for full-
was applicable to 18- to 19-year-old youths, as
time jobs. In the Los Angeles area, four offices
well as the 16- to 17 year-olds, and was held
were of the opinion that "lack of child care" and
irrespective of whether the Federal minimum
"transportation" were very important for only
was $1.60 or $1.30 an hour.
the 16-17-year-olds for both full-time and part-
Within the group of offices which held the
time jobs. One office in the Buffalo area named
view that employers- would hire appreciably
"baby-sitting problems" as very important for
more teenagers at a lower minimum wage, it
only the 18-19-year-olds for both full-time and
was believed that employment of 16-17 year-
part-time jobs.
olds would most likely increase in the following
occupational groups which are ranked in order
Effect on employment of lowering minimum wage
of importance: service (excluding domestic
for teenagers
service) sales, clerical, and industrial occupa-
tions. For the 18-19-year-olds, the offices be-
Of 91 offices in 21 areas, 43 percent were of
lieved that increased employment opportunities
the opinion that employers would hire apprecia-
would occur most likely in the same four occu-
bly more 16- to 17 year-old boys and girls if
pational groups, but there was little distinction
payment of a wage below the Federal minimum
in the order of importance of these groups. The
were legally possible ($1.60 an hour in most
industries and $1.30 an hour in newly covered
other occupational groups, although mentioned
retail and service industries). However, only 26
by a few offices, were relatively unimportant as
percent of the offices believed this to be true for
a source of increased jobs for either the 16-17
18- and 19-year-old youths of either sex. (See
or 18-19 age groups.
table 5.11.)
Offices which believed an appreciable increase
In five of the 21 areas local offices (21) were
in teenage employment would accompany a
unanimous in their opinion that employers
lowering of the minimum wage, thought that
would hire appreciably more 16- to 17-year-old
retail trade would be the most important indus-
boys and girls under the given circumstances.
try as a source of additional teenage employ-
The five areas were Charlotte, Detroit, Galve-
ment followed closely by the service industry,
ston, New Orleans, and Wichita. Although the
excluding private households. Wholesale trade
FORD
85
and finance, insurance, and real estate was the
so, would be the industrial and clerical groups.
third most important industry group in this re-
The hiring of workers in the domestic service,
spect. The manufacturing, construction, all
farm, and professional groups would be rela-
other and government industry groups were
tively unaffected, professional the least affected
mentioned as possibilities by some few local
of all. For part-time hiring, the relative import-
offices but were relatively unimportant as po-
ance of the other occupational groups affected
tential job sources for teenagers. Government
would be about the same as that for full-time
was the least important of all. There was little
with one exception-farm was ranked last in
difference in this industrial pattern between
importance below the professional group. (See
the 16-17 and 18- to 19-year-old age groups.
tables 5.14 and 5.15.)
Local officers indicated that hiring of some
Adverse effects of lowering Federal minimum
wage for teenagers on other groups of workers
groups of individuals, other than teenagers,
possessing certain demographic characteristics
The local offices were asked to respond either
would likely be more adversely affected than
"yes" or "no" as to whether or not lowering of
would other groups. The group ranked highest
the Federal minimum wage for teenagers would
in order of importance of being affected by a
in their judgment have an appreciable adverse
lowering of the Federal minimum wage for
effect on the hiring of other groups of workers
teenagers was female Negroes 45-64 years of
in each of the following seven industry groups:
age. Next in importance were Negro men 45-64
Manufacturing
years of age, followed in descending order of
Wholesale trade; finance, insurance, and real estate
rank importance by white males 45-64 years of
Retail trade
age, white females 45-64 years of age, and
Construction
Negro males 20-64 years of age. (See table
Government
Services, except private households
5.16.) Only a few offices responded that groups
All other industries
other than Negroes and whites would be af-
In 5 of the 7 groups, the local offices re-
fected. These groups were: male and female
sponding were overwhelmingly of the opinion
Mexican-Americans under 65 years of age in
that there would be no appreciable adverse ef-
the Los Angeles area; Puerto Rican men 25-44
fects. Local office opinion was closely divided
years of age in Hartford, Conn. area, and
over two of the seven industrial groups. Of 91
male and female Cubans 45-64 years of age in
offices responding in 21 areas, 46 percent indi-
the New Orleans area.
cated that other groups of workers would be
adversely affected for full-time hiring in retail
New applications for work filed during June 1969
trade; 42 percent gave the same response for
part-time workers in retail trade. Forty-three
percent of the offices indicated that other
About 183,000 applicants filed new applica-
groups of workers would be adversely affected
tions for work during June 1969 at the ES local
for full-time hiring in services, excluding pri-
offices in the 23 areas covered in the survey.
vate households; 38 percent of the offices gave
This was about 15 percent of 1,237,000 new
the same response for part-time hiring in serv-
work applications received during that month
ices. (See tables 5.12 and 5.13.)
at all ES local offices in the United States.
Those offices indicating that lowering the
Owing to the usual influx of youths into the
minimum wage would have an adverse effect on
labor market at this time of the year, teenagers
full-time hiring of nonteenage persons, indi-
filed about 40 percent, or 71,000, of the new
FORD
cated that the occupational groups most likely
work applications in the 23 surveyed areas dur-
to be affected would be service (excluding do-
ing June. Almost 60 percent of these teenager
mestic) and sales, both ranked about equal in
applications were filed by 18- to 19-year-old
importance. Next important, and about equally
youths, with the remaining 40 percent being
86
filed by 16-17-year olds. Among the male teen-
same time in all Employment Service local
agers, however, a slightly greater proportion
offices in the Nation.
(45 percent) of the new applications were from
Teenagers constituted about 25 percent, or
16-17-year olds than from the female teenagers
103,000, of the applicants with active applica-
(40 percent). Slightly more than one-half of the
tions on file at the end of June in the 20 re-
teenager applications were filed by males.
sponding areas. As customary during June, this
About 25 percent of all the new applications
was considerably smaller than the 40 percent
filed in the 23 surveyed areas, combined, were
teenage share of the new applications filed dur-
filed in Los Angles, the largest area surveyed.
ing that month. In all other respects, however,
In that area, however, only 30 percent of the
the distribution of teenager active applications
new applications were filed by teenagers. The
on file by sex and age was virtually identical to
proportion of new applications filed by teen-
that for the new applications filed by teenagers.
agers ranged from 27 percent in Seattle to 52
Los Angeles, however, had an even larger
percent in El Paso, but in 15 of the 23 areas it
share of the active applications on file than it
was above 40 percent. (See table 5.17.)
had new applications filed-32 percent versus
about 25 percent. As in the case of new applica-
Active applications for work on file at the end of
tions filed, however, Los Angeles fell about 10
June 1969
percentage points under the average for all
areas in the proportion of teenagers in the ac-
About 404,000 active applications for work
tive file. The proportion of teenagers in the ac-
were on file at the end of June 1969 in the ES
tive file varied from 15 percent in Los Angles to
local offices in the 23 surveyed areas. This
53 percent in Minneapolis-St. Paul, but in 13 of
amounted to about 15 percent of the more than
the 20 areas reporting this information it was
3 million active work applications on file at the
at least 25 percent. (See table 5.18.)
FOOTNOTES
1 The SMSA's included Los Angeles, Calif.; Lewiston-
The 23 areas surveyed included close to 14.3 million
Auburn, Maine; Hartford, Conn.; Buffalo, N.Y.; New-
persons, or about 17 percent of the national labor force
ark, N.J.; Baltimore, Md.; Atlanta, Ga.; Birmingham,
in June 1969. The average unemployment rate in the
Ala.; Charlotte, N.C.; Nashville, Tenn.; Cleveland,
23 areas was 4.0 percent (577,000). This was very close
Ohio; Detroit, Mich.; Milwaukee, Wis.; Minneapolis-
to the national rate of unemployment of 4.1 percent at
St. Paul, Minn.; El Paso, Tex.; Galveston-Texas City,
the time (not seasonally adjusted). A wide variations
Tex.; New Orleans, La.; Oklahoma City, Okla.; Wichita,
in the rate of unemployment existed among the areas. It
Kans.; Denver, Colo.; Salt Lake City, Utah; and
ranged from 2.4 percent in Cleveland to 5.8 percent in
Seattle, Wash.
New Orleans. (See table 5.1.)
87
Table 5.1. Estimated work force and unemployment in
surveyed areas mid-June 1969
(In thousands]
Unemployment
Region and Area 2
Work
force
Number
Rate
Region I:
Hartford, Conn
358.7
13.3
3.7
Lewiston-Auburn, Maine 2
33.6
1.9
5.7
Region II:
Buffalo, N.Y
573.2
21.9
3.8
Newark, NJ
913.4
38.7
4.2
Region III:
Baltimore, Md.
908.3
29.7
3.3
Region IV:
Atlanta, Ga.2
669.2
21.8
3.3
Birmingham, Ala
302.8
13.8
4.6
Charlotte, N.C
205.8
8.9
4.3
Nashville, Tenn
258.0
8.3
3.2
Region V:
Battle Creek, Mich.
69.9
3.4
4.9
Cleveland, Ohio
2
968.5
23.6
2.4
Detroit, Mich.
1,715.7
82.0
4.8
Milwaukee, Wis.2
640.2
22.5
3.5
Minneapolis-St. Paul, Minn
863.9
22.6
2.6
Region VI:
El Paso. Tex.
123.3
5.9
4.8
Galveston-Texas City, Tex.
61.6
3.2
5.2
New Orleans, La
436.5
25.4
5.8
Oklahoma City, Okla
291.4
11.5
3.9
Region VII:
Wichita, Kans
171.5
8.4
4.9
Region VIII:
Denver, Colo
529.1
22.2
4.2
Salt Lake City, Utah
217.6
11.1
5.1
Region IX:
Los Angeles, Calif.
3,346.5
150.7
4.5
Region X:
Scattle, Wash
674.5
25.8
3.8
1 The Roman numerals I through X designate the regional subdivisions of the country
through which the Department of Labor administers its programs.
2 Areas also covered by BLS employer study.
Table 5.2. Nonagricultural placements made during June 1969, by employment service local offices in selected areas
Total nonagricultural placements
Both sexes
Female
Region and Area
Total
Total
16-17
18-19
16-17
18-19
years
years
years
years
All ages
Teenagers
All ages
Teenagers
1. Hartford, Conn
1,143
202
54
148
422
83
26
57
Lewiston Auburn, Maine
295
100
28
72
106
44
11
33
II. Buffalo, N.Y
2,800
531
146
385
1,528
186
48
138
Newark, NJ
3,906
907
254
653
2,327
415
115
300
III. Baltimore, Md
3,686
1,359
413
946
1,672
595
182
413
IV. Atlanta, Ga
3,709
1,427
675
752
1,802
602
263
339
Birmingham, Ala
1,752
589
162
427
795
194
51
143
Charlotte, N.C
925
331
144
187
413
134
59
75
Nashville, Tenn
1,543
392
124
268
518
169
45
124
V. Battle Creek, Mich
271
118
47
71
121
48
15
33
Cleveland Ohio
3,239
1,618
866
752
1.197
711
383
328
Detroit, Mich
5,531
1,258
189
1,079
2,399
429
66
363
Milwaukee. Wis
1,284
226
76
150
486
86
32
54
Minneapolis-St. Paul, Minn
3,961
1,657
714
943
1,729
858
369
489
VI. El Paso, Tex
2,353
661
349
312
1,310
233
97
136
Galveston-Texas City, Tex
816
177
43
134
325
45
9
36
New Orleans. La
2,480
459
57
402
972
164
30
134
Oklahoma City, Okla
4,022
1,175
652
523
1,355
533
300
233
VII. Wichita. Kans
1,369
316
(1)
(1)
361
(1)
(1)
72
VIII. Denver. Colo
5,188
1,501
522
979
1,411
408
142
266
Salt Lake City Utah
1,486
268
(1)
(1)
408
73
(1)
(1)
IX. Los Angeles Calif
18,278
3,249
1,047
2,202
7,166
1,263
457
806
X. Seattle, Wash
1,078
250
68
182
372
87
18
69
Total, all areas
71,115
18,781
6,630
11,567
28,834
7,360
2,718
4,641
1 Information not available.
3 To preserve comparability with female "Teenagers" column, "Total, all ages"
does not include figures for the Wichita area for which teanager data were not reported.
88
Table 5.3. Rank importance of the occupational group in which teenagers were placed in full-time year-round jobs
most frequently during fiscal year 1969, by employment service local offices
[Rating scale: Most important = 3; second most important = 2; third most important = 1] 1
Region and area
1.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Occupational group
Average, all areas
Hartford, Conn.
Lewiston-Auburn, Maine
Buffalo, N.Y.
Baltimore, Md.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Milwaukee, Wis.
Minneapolis-St. Paul, Minn.
El Paso, Tex.
Galveston-Texas City, Tex.
New Orleans, La.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
Professional, technical, managerial
0.05
0.00
0.00
0.40
0.00
0.20
0.25
0.00
0.00
0.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Clerical
1.34
2.08
1.00
1.50
1.71
1.80
1.80
1.75
2.00
1.65
1.67
1.33
1.00
1.00
0.00
1.25
1.45
0.00
1.50
1.00
1.38
1.40
Sales
0.43
1.58
0.00
0.60
0.57
0.40
0.65
0.00
0.00
0.80
0.33
0.00
0.67
0.00
0.00
1.00
0.40
2.00
0.00
0.00
0.04
0.00
Domestic service
0.37
0.00
0.00
0.20
0.00
0.20
0.00
0.00
0.00
0.50
0.17
1.33
0.00
0.00
1.00
0.00
0.25
0.00
0.00
3.00
0.71
0.40
Service. excluding domestic
1.53
0.83
1.00
1.20
1.71
1.00
0.90
1.75
1.00
1.05
0.67
0.33
1.33
2.00
2.00
1.25
1.85
0.00
2.00
0.00
1.29
1.20
Farming. fishery. forestry, and
related occupations
0.11
0.00
0.00
0.00
0.14
0.00
0.00
0.00
0.00
0.25
0.17
0.00
0.00
0.00
0.00
0.50
0.25
1.00
0.00
0.00
0.00
0.00
Industrial
2.49
1.50
3.00
2.10
1.86
2.40
2.40
2.50
3.00
1.50
3.00
3.00
3.00
3.00
3.00
2.00
2.00
3.00
2.50
2.00
2.53
3.00
1 To give equal representation to all areas, local office rankings for each response
ber of local offices in each area responding to each of the items. The overall average
were weighted by the following values: Most important = 3; important = 2; and
for a particular response is the average of the computed values for the areas responding
unimportant, irrevelant, or not true = 1. These values then were averaged by the num-
to that question.
Table 5.4. Rank importance of the occupational group in which teenagers were placed in part-time year-round jobs
most frequently during fiscal year 1969, by employment service local offices
[Rating scale: Most important = 3; second most important = 2; third most important = 1]
Region and area
I.
11.
III.
IV.
V.
VI.
VII.
VIII.
X.
Occupational group
Average, all areas
Hartford, Conn.
Lewiston-Auburn, Maine
Buffalo, N.Y.
Baltimore, Md.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Milwaukee, Wis.
Minneapolis-St. Paul, Minn.
EI Paso, Tex.
Galveston-Texas City, Tex.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Seattle, Wash.
Professional, technical,
0.00
0.00
0.00
0.00
managerial
0.03
0.00
0.00
0.14
0.00
0.20
0.00
0.00
0.00
0.25
0.00
0.00
0.00
0.00
0.00
0.00
Clerical
1.07
1.42
0.00
1.14
1.33
1.40
1.75
1.67
1.00
1.50
1.67
1.67
0.67
1.00
0.00
1.25
0.00
1.00
0.00
1.20
Sales
0.82
1.75
0.00
2.14
1.67
0.40
0.75
0.67
3.00
1.00
0.33
0.33
1.00
0.00
0.00
0.60
1.00
0.00
1.00
0.00
Domestic service
0.47
0.00
2.00
0.29
0.00
0.40
0.75
0.00
0.00
0.75
0.17
2.00
0.67
0.00
1.00
0.25
0.00
0.00
0.00
0.60
Service, excluding
domestic
1.59
2.00
0.00
1.71
2.00
1.60
1.00
1.67
2.00
0.75
0.67
2.00
2.00
2.00
2.00
1.50
0.00
3.00
3.00
1.40
Farming, fishery. forestry,
and related occupations
0.26
0.00
0.00
0.00
1.00
0.20
0.00
0.00
0.00
1.00
0.17
0.00
0.00
0.00
0.00
0.60
2.00
0.00
0.00
0.00
Industrial
1.74
0.83
3.00
0.57
0.00
1.80
1.75
2.00
0.00
0.75
3.00
0.00
1.67
3.00
3.00
1.80
3.00
2.00
2.00
2.80
89
Table 5.5. Rank importance of most frequent reasons given by employers for not hiring teenagers in full-time year-
round jobs as reported by employment service local offices
[Ranking scale: First rank = 3; second rank = 2; third rank = 1]
Region and area
II.
III.
IV.
V.
VI.
IX.
X.
Reason
Paul, Minn.
City, Tex.
Ala.
Average, all areas
N.Y.
Atlanta, Ga.
Nashville, Tenn.
Battle Creek, Mich.
Ohio
Detroit, Mich.
New Orleans, La.
City, Okla.
Baltimore, Md.
Milwaukee, Wis.
Tex.
Los Angles, Calif.
Wash.
1. Uncertainty over the draft makes employers
reluctant to hire teenagers
0.93
0.73
0.86
0.40
2.00
0.00
1.00
0.50
0.92
1.33
0.33
3.00
0.00
1.25
0.60
0.75
1.25
2. Level of the minimum wage has caused em-
ployers to seek older, more experienced
0.00
0.00
0.00
0.00
0.00
workers for jobs
0.04
0.00
0.14
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
3. Legal restrictions on hours of work, hazard-
ous work, or other working conditions, for
teenagers
1.10
0.73
0.29
0.20
0.00
1.50
3.00
1.33
2.25
2.00
2.00
0.00
1.00
2.00
0.00
0.50
0.75
4. Unwillingness of teenagers to accept wages
usually offered for jobs they are qualified
to take
0.10
0.00
0.00
0.20
0.00
0.50
0.00
0.33
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.63
0.00
5. Employer fear of higher cost of workmen's
compensation, other insurance, or insurance
0.00
0.18
0.00
0.57
0.60
0.50
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.40
0.25
not covering teenagers
6. Employers believe teenagers are not reliable
1.08
1.36
1.43
2.00
2.00
0.50
2.00
1.67
0.33
1.00
0.67
0.00
0.00
0.25
3.00
0.38
1.75
and/or are immature
7. High labor turnover among teenagers
0.34
0.18
0.71
0.60
0.00
0.50
0.00
0.00
0.00
0.00
0.67
0.00
0.00
0.25
1.20
0.75
0.50
8. State laws require too much paper work such
0.00
as work permits
0.07
0.00
0.14
0.00
0.00
0.25
0.00
0.17
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
9. High cost of hiring and training teenagers
0.16
0.00
0.57
0.00
0.00
0.75
0.00
0.33
0.00
0.00
0.33
0.00
0.00
0.00
0.00
0.63
0.00
10. Union contract provisions
0.08
0.00
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.75
0.00
11. Teenagers lack training, experience, and/or
0.63
1.00
1.30
2.73
1.29
1.20
1.50
1.00
0.00
1.33
2.00
0.67
1.00
2.00
3.00
1.50
0.00
education
12. Teenagers lack transportation to jobs
0.03
0.00
0.00
0.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13. Unwillingness of teenagers to accept jobs
within their skill range
0.01
0.00
0.00
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14. Physical requirements
0.01
0.00
0.00
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
15. Teenagers are more subject to injury on the
job
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.33
0.00
0.00
0.33
0.00
0.00
0.00
0.00
0.00
0.00
16. Impending marriages, including pregnancy
0.05
0.27
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
17. Teenagers show lack of initiative
0.01
0.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
18. Teenagers have too much absenteeism
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.67
0.00
0.00
0.00
0.00
0.00
0.00
0.00
19. Employers prefer more experienced, mature,
0.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.33
0.00
1.00
0.00
0.50
0.00
0.25
0.25
or older persons
20. Teenager's inability to work hours needed for
0.00
0.00
0.00
0.00
jobs because of school or other reasons
0.13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.00
21. Inappropriate teenage dress
0.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.67
0.00
0.00
0.25
0.00
0.00
0.00
22. Productivity VS. cost
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.80
0.00
0.00
90
Table 5.6. Rank importance of most frequent reasons given by employers for not hiring teenagers in part-time year-
round jobs as reported by employment service local offices
[Ranking scale: First rank = 3; second rank = 2; third rank = 1]
Region and area
II.
III.
IV.
V.
VI.
IX.
X.
Reason
City, Tex.
Average, all areas
Buffalo, N.Y.
Baltimore, Md.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Milwaukee, Wis.
Paso, Tex.
Oklahoma City, Okla.
Los Angeles, Calif.
Seattle, Wash.
1. Uncertainty over the draft makes employers reluctant to hire
teenagers
0.28
0.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
0.40
0.50
0.70
2. Level of the minimum wage has caused employers to seek
older, more experienced workers for jobs
0.06
0.00
0.33
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3. Legal restrictions on hours of work, hazardous work, or
other working conditions for teenagers
1.12
1.78
0.00
0.00
1.00
1.50
3.00
1.25
2.00
1.33
0.00
2.00
0.00
1.13
0.75
4. Unwillingness of teenagers to accept wages usually offered
for jobs they are qualified to take
0.26
0.00
0.00
0.20
2.00
0.50
0.00
0.00
0.17
0.00
0.00
0.00
0.00
0.75
0.00
5. Employers hiring specifications with respect to age exclude
0.08
0.00
0.00
0.60
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
teenagers
6. Employer fear of higher cost of workmen's compensation,
other insurance, or insurance not covering teenagers
0.26
0.00
1.00
0.40
0.00
0.00
0.00
0.25
0.33
0.00
1.00
0.00
0.40
0.25
0.00
7. Employers believe teenagers are not reliable and/or are
immature
1.62
1.00
1.33
1.80
3.00
0.50
2.00
1.75
1.67
1.00
0.00
3.00
3.00
0.63
2.00
8. High labor turnover among teenagers
0.26
0.00
0.00
0.40
0.00
0.50
0.00
0.25
0.00
0.00
0.00
0.00
1.20
0.75
0.50
9. State laws require too much paper work such as work
permits
0.15
0.00
1.00
0.00
0.00
0.25
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.38
0.00
10. High cost of hiring and training teenagers
0.17
0.00
0.00
0.60
0.00
0.75
0.00
0.00
0.00
0.67
0.00
0.00
0.00
0.38
0.00
11. Union contract provisions
0.06
0.00
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.38
0.00
12. Teenagers lack training. experience, and/or education
0.70
1.22
0.00
0.60
0.00
1.00
0.00
0.50
0.17
2.00
3.00
0.00
0.00
0.50
0.75
13. Teenagers lack transportation to jobs
0.08
0.00
0.00
0.40
0.00
0.00
0.00
0.00
0.67
0.00
0.00
0.00
0.00
0.00
0.00
14. Unwillingness of teenagers to accept jobs within their skill
0.01
0.00
0.00
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
range
15. Physical requirements
0.01
0.00
0.00
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16. Impending marriages. including pregnancy
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
17. Teenagers show lack of initiative
0.02
0.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
18. Teenagers have too much absenteeism
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.67
0.00
0.00
0.00
0.00
0.00
19. Employers prefer more experienced, mature, or older
0.00
0.00
0.25
0.00
0.33
0.00
0.00
0.00
0.38
0.00
persons
0.07
0.00
0.00
0.00
0.00
20. Teenagers' inability to work hours needed for jobs because
of school or other reasons
0.53
1.11
2.33
0.20
0.00
0.00
1.00
1.25
0.50
0.00
0.00
1.00
0.00
0.00
0.00
21. Inappropriate teenage dress
0.02
0.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
22. Productivity VS. cost
0.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
23. Minimum wage has caused employers to hire older youth in
preference to 16-18 year olds
0.03
0.00
0.00
0.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
24. Available supply of older. part-time workers
0.05
0.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
25. Scarcity of part-time jobs
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.25
GERALD
91
Table 5.7. Rank importance of reasons for difficulty in placing teenagers 16-17 years of age on full-time year-round
jobs based on local office experience during fiscal year 1969
[Rating scale: Very important = 3; important = 2; unimportant, irrelevant, or not true = 1]
Region and area
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Reason
Average, all areas
Buffalo, N.Y.
Newark, N.J.
Baltimore, Md.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Minneapolis-St. Paul, Minn.
EI Paso, Tex.
Galveston-Texas City, Tex.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
1. Uncertainty over the draft
makes employers reluctant
to hire teenagers
1.32
1.20
1.00
1.29
1.40
1.25
1.00
1.00
1.40
1.00
1.00
3.00
2.00
1.20
2. Level of the minimum wage
2.00
1.00
1.00
1.00
1.00
has caused employers to
seek older, more experienced
workers for jobs
1.77
1.80
2.00
2.00
1.80
2.50
1.75
2.00
2.00
1.00
1.00
1.00
3.00
3. Legal restrictions on hours
1.40
2.00
1.00
3.00
1.62
1.00
of work, hazardous work, or
other working conditions for
teenagers
2.75
2.90
3.00
2.14
2.80
2.50
3.00
3.00
3.00
2.83
2.67
3.00
2.00
3.00
4. Unwillingness of teenagers
3.00
3.00
2.00
2.87
2.80
to accept wages usually
offered for jobs they are
qualified to take
1.79
1.50
1.00
1.71
1.80
1.50
1.75
1.00
2.20
2.25
1.00
2.00
2.00
5. Hiring specifications of em-
1.80
2.00
3.00
2.00
1.50
2.20
ployers with respect to edu-
cation and experience are SO
high that most teenagers are
excluded
2.28
2.20
3.00
1.86
2.20
2.75
2.00
3.00
2.00
3.00
2.00
2.00
1.00
6. Employers' hiring specifica-
2.40
3.00
1.00
3.00
2.37
2.20
tions with respect to age
exclude teenagers
2.44
2.21
2.00
2.00
2.60
2.50
2.75
3.00
2.20
3.00
2.67
2.00
2.00
7. Employer fear of higher cost
1.80
3.00
3.00
3.00
2.25
2.00
of workmen's compensation
and other insurance when
teenagers are employed
2.19
2.00
1.00
2.14
1.60
2.50
2.75
3.00
1.80
3.00
3.00
3.00
1.00
2.40
8. Employers believe teenagers
3.00
1.00
2.00
2.50
1.80
are not reliable
2.54
2.40
3.00
2.29
2.60
2.50
2.25
1.00
3.00
2.25
2.00
3.00
3.00
9. High labor turnover among
2.60
3.00
3.00
3.00
2.37
2.40
teenagers
2.31
2.30
3.00
2.29
2.40
1.75
2.25
1.00
2.80
2.17
1.33
3.00
10. State laws require too much
2.00
2.60
2.00
3.00
3.00
2.37
2.40
paper work such as work
permits
1.85
2.20
2.00
1.29
1.80
1.50
1.50
2.00
1.80
2.75
1.00
1.00
11. High cost of hiring and train-
1.00
1.20
2.00
2.00
2.00
1.87
2.20
ing teenagers
1.65
1.80
1.00
2.00
2.40
1.75
1.75
1.00
2.20
1.00
1.33
2.00
1.00
12. Union contract provisions
1.60
2.00
1.63
1.00
1.20
2.00
1.00
1.87
2.00
1.43
2.20
1.50
1.00
1.00
1.60
1.58
1.00
1.00
2.00
1.40
3.00
3.00
1.00
2.37
2.00
&
FORD
HALD
92
Table 5.8. Rank importance of reasons for difficulty in placing teenagers 18-19 years of age on full-time year-round
jobs based on local office experience during fiscal year 1969
[Rating scale: Very important = 3; important = 2; unimportant, irrelevant. or not true = 1]
Region and area
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Reason
Average, all areas
Buffalo, N.Y.
Newark, N.J.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Minneapolis-St. Paul, Minn.
City, Tex.
Baltimore, Md.
Cleveland, Ohio
Detroit, Mich.
EI Paso, Tex.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
1. Uncertainty over the draft
makes employers reluctant
2.25
2.40
to hire teenagers
2.44
2.54
1.00
2.43
2.20
3.00
2.50
2.00
2.80
2.00
2.00
3.00
3.00
2.60
3.00
3.00
2.00
2. Level of the minimum wage
has caused employers to
seek older. more experienced
1.00
1.29
1.60
2.00
2.25
1.00
1.80
1.00
1.00
1.00
2.00
1.40
2.00
2.00
2.00
1.75
1.20
workers for jobs
1.54
1.36
3. Legal restrictions on hours
of work. hazardous work. or
other working conditions for
1.41
1.73
2.00
1.29
1.20
1.50
2.00
1.00
2.00
1.00
1.33
1.00
1.00
1.40
2.00
1.00
1.00
1.62
1.40
teenagers
4. Unwillingness of teenagers
to accept wages usually
offered for jobs they are
2.33
2.00
3.00
2.20
2.00
2.00
2.00
2.25
2.40
qualified to take
2.10
1.91
1.00
2.00
2.20
1.50
2.25
2.00
2.60
2.25
5. Hiring specifications of em-
ployers with respect to edu-
cation and experience are SO
high that most teenagers are
excluded
1.95
2.09
3.00
1.57
1.80
1.00
2.00
1.00
2.20
1.83
1.67
2.00
2.00
2.40
2.00
3.00
2.00
2.12
1.40
6. Employers' hiring specifica-
tions with respect to age
1.80
exclude teenagers
1.56
1.82
1.00
1.14
1.20
1.25
1.75
2.00
1.80
1.75
1.33
2.00
1.00
1.20
2.00
1.50
2.00
1.50
7. Employer fear of higher cost
of workmen's compensation
and other insurance when
1.29
1.20
2.25
1.75
1.00
1.80
1.17
1.33
2.00
1.00
1.80
3.00
3.00
1.00
1.62
1.00
teenagers are employed
1.59
1.45
1.00
8. Employers believe teenagers
2.10
2.09
3.00
1.86
2.00
2.00
2.00
1.00
2.80
1.00
1.33
2.00
2.00
2.80
3.00
3.00
2.00
2.12
1.80
are not reliable
9. High labor turnover among
1.00
2.60
2.00
2.00
2.00
2.00
2.60
2.00
2.00
3.00
2.12
2.20
teenagers
2.14
2.27
3.00
2.00
2.00
1.75
2.00
10. State laws require too much
paper work such as work
permits
1.07
1.09
1.00
1.00
1.00
1.00
1.00
1.00
1.20
1.00
1.33
1.00
1.00
1.20
1.00
1.00
1.00
1.25
1.20
11. High cost of hiring and train-
1.00
1.80
2.00
2.50
1.00
2.00
1.40
ing teenagers
1.58
2.00
1.00
1.57
1.40
1.50
1.75
1.00
2.20
1.00
1.33
2.00
12. Union contract provisions
1.40
1.36
1.00
1.14
1.20
1.25
1.00
1.00
1.40
1.25
1.33
1.00
2.00
1.00
2.00
3.00
1.00
1.62
1.60
93
Table 5.9. Rank importance of reasons for difficulty in placing teenagers 16-17 years of age on part-time year-round
jobs based on local office experience during fiscal year 1969
[Rating scale: Very important = 3; important == 2; unimportant. irrelevant, or not true = 1]
Region and area
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Reason
Average, all areas
Buffalo, N.Y.
Newark, N.J.
Baltimore, Md.
Atlanta, Ga.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Minneapolis-St. Paul, Minn.
Paso, Tex.
Galveston-Texas City, Tex.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
1. Uncertainty over the draft
makes employers reluctant
1.00
1.00
to hire teenagers
1.18
1.25
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
3.00
1.00
1.00
2.00
1.00
1.00
2. Level of the minimum wage
has caused employers to
seek older, more experienced
workers for jobs
1.66
2.12
1.00
2.00
1.60
1.75
2.00
2.00
1.75
1.00
1.00
1.00
3.00
1.40
2.00
1.50
2.00
2.75
1.00
3. Legal restrictions on hours
of work, hazardous work, or
other working conditions for
teenagers
2.71
3.00
2.00
2.67
2.80
2.50
3.00
3.00
3.00
2.75
2.67
3.00
2.00
2.80
3.00
3.00
2.00
2.87
2.80
4. Unwillingness of teenagers
to accept wages usually
offered for jobs they are
qualified to take
1.64
1.25
1.00
1.33
1.80
1.50
1.33
1.00
2.00
2.00
1.00
2.00
2.00
1.60
2.00
3.00
1.00
1.50
2.20
5. Hiring specifications of em-
ployers with respect to edu-
cation and experience are so
high that most teenagers are
excluded
1.96
1.50
3.00
1.33
1.80
2.25
2.33
3.00
1.75
3.00
1.00
2.00
1.00
1.40
3.00
1.00
2.00
2.00
2.00
6. Employers' hiring specifica-
tions with respect to age
2.00
exclude teenagers
2.23
2.50
2.00
1.67
2.60
2.25
2.00
3.00
2.00
3.00
2.33
2.00
2.00
1.80
2.00
3.00
2.00
2.00
7. Employer fear of higher cost
of workmen's compensation
and other insurance when
teenagers are employed
2.09
1.75
1.00
2.33
1.60
2.25
2.67
3.00
2.00
3.00
2.67
2.00
1.00
2.40
3.00
1.00
2.00
2.50
1.40
8. Employers believe teenagers
are not reliable
2.30
2.25
3.00
2.00
2.60
2.25
1.67
1.00
2.75
2.17
2.00
2.00
3.00
2.40
2.00
3.00
3.00
2.12
2.20
9. High labor turnover among
teenagers
2.22
2.12
3.00
2.00
2.20
1.75
1.67
1.00
2.75
2.17
1.33
3.00
2.00
2.40
2.00
3.00
3.00
2.25
2.40
10. State laws require too much
paper work such as work
permits
1.59
2.00
2.00
1.33
1.80
1.00
1.00
2.00
1.75
2.83
1.00
1.00
1.00
1.20
2.00
1.00
2.00
1.75
2.00
11. High cost of hiring and train-
ing teenagers
1.57
1.37
1.00
1.67
2.20
1.50
1.67
1.00
2.25
1.00
1.33
2.00
1.00
1.60
2.00
1.00
2.00
1.87
1.80
12. Union contract provisions
1.72
1.00
1.00
1.67
1.80
1.50
1.00
1.00
1.25
1.58
1.00
1.00
3.00
1.40
3.00
3.00
(1)
2.12
2.00
1 Data not reported.
FORD
RALD
94
Table 5.10. Rank importance of reasons for difficulty in placing teenagers 18-19 years of age on part-time year-round
jobs based on local office experience during fiscal year 1969
[Rating scale: Very important = 3; important = 2; unimportant. irrelevant. or not true = 1]
Region and area
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Reason
Buffalo, N.Y.
Atlanta, Ga.
Minneapolis-St. Paul, Minn.
City, Tex.
Average, all areas
Newark, N.J.
Baltimore, Md.
Birmingham, Ala.
Nashville, Tenn.
Battle Creek, Mich.
Cleveland, Ohio
Detroit, Mich.
Paso, Tex.
Oklahoma City, Okla.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
1. Uncertainty over the draft
makes employers reluctant
to hire teenagers
1.48
1.56
1.00
1.67
1.40
1.00
1.33
2.00
2.00
1.00
1.33
3.00
1.00
1.40
2.00
1.50
1.00
1.50
1.00
2. Level of the minimum wage
has caused employers to
seek older, more experienced
workers for jobs
1.52
1.33
1.00
1.33
1.40
1.25
2.67
1.00
1.75
1.00
1.33
1.00
2.00
1.40
2.00
2.00
2.00
1.75
1.20
3. Legal restrictions on hours
of work, hazardous work. or
other working conditions for
teenagers
1.45
1.89
2.00
1.33
1.20
1.25
3.00
1.00
2.25
1.00
1.33
1.00
1.00
1.20
2.00
1.00
1.00
1.25
1.40
4. Unwillingness of teenagers
to accept wages usually
offered for jobs they are
qualified to take
1.87
1.56
1.00
1.67
2.20
1.75
1.67
2.00
2.50
2.00
1.33
2.00
2.00
1.80
2.00
2.00
2.00
1.87
2.40
5. Hiring specifications of em-
ployers with respect to edu-
cation and experience are SO
high that most teenagers are
excluded
1.54
1.44
3.00
1.33
1.60
1.00
2.33
1.00
2.00
1.75
1.00
1.00
1.00
1.40
2.00
2.00
1.00
1.75
1.20
6. Employers' hiring specifica-
tions with respect to age
exclude teenagers
1.47
1.67
1.00
1.00
1.20
1.00
2.67
2.00
1.75
1.75
1.33
1.00
1.00
1.20
2.00
1.00
2.00
1.37
1.60
7. Employer fear of higher cost
of workmen's compensation
and other insurance when
teenagers are employed
1.48
1.44
1.00
1.33
1.20
2.00
2.00
1.00
2.00
1.25
1.33
2.00
1.00
1.60
3.00
1.00
1.00
1.50
1.50
8. Employers believe teenagers
are not reliable
1.95
2.00
3.00
1.67
2.00
2.00
1.67
1.00
2.75
1.00
1.33
1.00
2.00
2.40
3.00
3.00
2.00
1.75
1.60
9. High labor turnover among
teenagers
2.01
2.00
3.00
1.67
1.80
1.75
1.33
1.00
2.75
2.00
1.33
2.00
2.00
2.40
2.00
3.00
2.00
2.00
2.20
10. State laws require too much
paper work such as work
permits
1.05
1.11
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.33
1.00
1.00
1.20
1.00
1.00
1.00
1.25
1.00
11. High cost of hiring and train-
ing teenagers
1.41
1.67
1.00
1.33
1.20
1.25
2.00
1.00
2.25
1.00
1.33
1.00
1.00
1.60
2.00
0.50
2.00
2.00
1.20
12. Union contract provisions
1.38
1.22
1.00
1.67
1.20
1.25
1.00
1.00
1.25
1.25
1.33
1.00
1.00
1.00
2.00
3.00
(1)
1.75
1.60
1 Data not reported.
CERALD FORD
95
Table 5.11. Employment service local offices expressing
the view that employers in their areas would hire appre-
ciably 1 more teenagers than they now do if it were legally
possible to pay teenagers a wage below the Federal
minimum wage
Number of local offices responding
Expressing view that
employers would hire
appreciably more teenagers
Region and area
Total
16-17
18-19
years old
years old
Male
Female
Male
Female
Total, all areas
91
39
39
24
23
I. Hartford, Conn
5
1
1
1
1
Lewiston-Auburn, Maine
(2)
II. Buffalo, N.Y
10
5
6
5
6
Newark, NJ
(2)
III.
Baltimore, Md
7
2
2
1
1
IV.
Atlanta, Ga
4
2
2
2
2
Birmingham, Ala
4
2
1
0
0
Charlotte, N.C
2
2
2
2
2
Nashville, Tenn
4
0
0
0
0
V. Battle Creek, Mich
1
0
0
0
0
Cleveland, Ohio
5
0
0
0
0
Detroit, Mich
12
12
12
0
0
Milwaukee, Wis
3
0
0
0
0
Minneapolis-St. Paul, Minn
3
0
0
0
0
VI. El Paso, Tex
3
0
0
0
0
Galveston-Texas City, Tex
2
2
2
2
2
New Orleans, La
4
4
4
4
4
Oklahoma City, Okla
5
2
2
2
1
VII. Wichita, Kans
1
1
1
1
1
VIII. Denver, Colo
2
0
0
0
0
Salt Lake City, Utah
1
0
0
1
0
IX. Los Angeles, Calif
8
3
3
3
3
X. Seattle, Wash
5
1
1
0
0
1 Appreciably was defined as meaning an increase of more than 3 percent in the num-
ber of teenagers hired during the past year.
2 Information not available.
Table 5.12. Number of employment service local offices indicating that a lower Federal minimum wage would have
an appreciably adverse effect on the full-time hiring of other groups of workers, by industrial groups
Number of local offices indicating adverse effect by industry
Total number
Region and area
of local offices
Wholesale
Services
responding
Manufacturing
trade; finance.
Retail trade
Construction
Government
except
All other
insurance and
private
industries
real estate
households
Total. all areas
91
11
20
42
6
17
39
6
I. Hartford. Conn
4
2
3
3
(1)
1
3
1
11. Buffalo, N.Y
11
2
4
8
2
1
7
0
Newark NJ
2
1
0
1
0
1
0
0
111. Baltimore Md
7
0
0
0
0
0
0
0
IV. Atlanta, Ga
6
0
0
0
0
0
1
0
Bermingham, Ala
4
0
0
1
0
0
1
0
Charlotte N.C
2
1
0
2
0
1
2
1
Nashville, Tenn
4
0
0
0
0
0
0
0
V. Battle Creek Mich
1
0
0
0
0
0
0
0
Cleveland Ohio
5
0
0
0
0
0
0
0
Detroit. Mich
12
0
12
12
0
12
12
0
Milwaukee, WIS
3
0
0
0
0
0
0
0
Minneaptlis-St. Paul. Minn
3
0
0
0
0
0
0
0
VI. 11 Pass. Tex
3
0
0
0
0
0
0
0
Galveston-Texas City, Tex
2
0
0
2
0
0
2
0
Oklahoma City, Okla
5
1
0
5
1
0
1
1
VII. Wichita, Kans
1
0
0
1
1
0
1
1
VIII. Denver Colo
2
2
0
0
1
0
2
0
Salt Lake City Utah
1
0
0
1
0
0
1
0
IX. Los Angeles. Calif
8
2
1
5
1
1
5
2
X. Seattle, Wash
5
0
0
1
0
0
1
0
FORD
I Failed to respond.
96
Table 5.13. Number of employment service local offices indicating that a lower Federal minimum wage would have
an appreciably adverse effect on the part-time hiring of other groups of workers, by industrial groups
Number of local offices indicating adverse effect by industry
Total number
Region and area
of local offices
Wholesale
Services
responding
Manufacturing
trade; finance,
Retail trade
Construction
Government
except
All other
insurance and
private
industries
real estate
households
Total, all areas
91
9
20
38
6
16
35
9
I. Hartford, Conn
4
0
3
3
(1)
1
3
1
II. Buffalo, N.Y
11
2
1
5
2
0
4
0
Newark, N.J
2
1
0
1
0
1
0
0
III. Baltimore, Md
7
0
0
0
0
0
0
0
IV. Atlanta, Ga
6
0
0
0
0
0
1
0
Birmingham, Ala
4
0
0
0
0
0
0
0
Charlotte, N.C
2
1
1
2
1
1
2
1
Nashville, Tenn
4
0
0
0
0
0
0
0
V. Battle Creek, Mich
1
0
0
0
0
0
0
0
Cleveland, Ohio
5
0
0
0
0
0
0
0
Detroit. Mich
12
0
12
12
0
12
12
0
Milwaukee, Wis
3
0
0
0
0
0
0
0
Minneapolis-St. Paul, Minn
3
0
0
0
0
0
0
0
VI. El Paso, Tex
3
0
0
0
0
0
0
0
Galveston-Texas City, Tex
2
0
0
2
0
0
2
2
Oklahoma City, Okla
5
1
0
5
1
0
1
1
VII. Wichita, Kans
1
0
0
1
1
0
1
1
VIII. Denver. Colo
2
2
0
1
0
0
2
0
Salt Lake City, Utah
1
0
1
0
0
0
1
1
IX. Los Angeles, Calif
8
2
2
5
1
1
5
2
X. Seattle, Wash
5
0
0
1
0
0
1
0
1 Failed to respond.
Table 5.14. Rank importance of the occupational groups in which hiring of other groups of workers for full-time year-
round jobs would be adversely affected by lowering minimu m wage for teenagers as reported by employment service
local offices
[Ranking scale: First rank = 3; second rank = 2; third rank = 1]
Region and area
I
II
IV
V
VI
VII
VIII
1X
X
Occupational group
Average, all areas
Hartford, Conn.
Buffalo, N.Y.
Newark, N.J.
Birmingham, Ala.
Charlotte, N.C.
Detroit, Mich.
Galveston-Texas City, Tex.
New Orleans, La.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
Professional. technical, managerial
0.03
0.00
0.00
0.00
0.00
0.33
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.40
0.00
Clerical
0.81
1.42
1.50
0.00
1.00
1.17
1.00
1.00
2.00
Sales
1.85
2.50
2.00
2.00
3.00
1.00
3.00
0.00
3.00
1.00
0.00
2.00
2.50
2.00
Domestic service
0.34
0.00
0.60
0.00
0.00
0.67
0.00
0.00
0.00
2.00
0.00
0.00
0.20
1.00
3.00
2.50
3.00
1.50
3.00
Service, excluding domestic
1.86
1.75
0.90
0.00
2.00
1.50
2.00
2.00
1.00
Farming. fishery. forestry, and related occupations
0.08
0.33
0.00
0.00
0.00
0.67
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Industrial
0.87
0.00
1.00
3.00
0.00
0.67
0.00
3.00
0.00
0.00
2.50
1.00
0.20
0.00
&
FORD
97
Table 5.15. Rank importance of the occupational groups in which hiring of other groups of workers for part-time
year-round jobs would be adversely affected by lowering minimum wage for teenagers as reported by employment service
local offices
[Ranking scale: First rank - 3; second rank - 2; third rank - 1]
Region and area
I
II
IV
V
VI
VII
VIII
IX
Occupational group
Average, all areas
Hartford, Conn.
Buffalo, N.Y.
Newark, N.J.
Charlotte, N.C.
Detroit, Mich.
Galveston-Texas City, Tex.
Wichita, Kans.
Denver, Colo.
Salt Lake City, Utah
Los Angeles, Calif.
Seattle, Wash.
Professional, technical, managerial
0.21
0.00
0.00
0.00
2.29
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Clerical
0.55
1.42
0.87
0.00
0.14
1.00
1.00
0.00
1.00
0.00
0.57
0.00
Sales
1.69
2.50
1.87
2.00
1.00
3.00
2.00
1.00
0.00
1.00
2.25
2.00
Domestic service
0.36
0.00
1.00
0.00
0.64
0.00
0.00
2.00
0.00
0.00
0.33
0.00
Service, excluding domestic
2.02
1.75
1.37
0.00
0.64
2.00
3.00
3.00
2.50
3.00
2.00
3.00
Farming, fishery, forestry, and related occupations
0.09
0.33
0.00
0.00
0.64
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Industrial
0.89
0.00
0.87
3.00
0.64
0.00
0.00
0.00
2.50
2.00
0.75
0.00
Table 5.16. Rank importance of the sex, age, and race combinations of other workers who would be most adversely
affected by lowering minimum wage for teenagers as reported by employment service local offices
[Rating scale: First rank = 3; second rank = 2; third rank = 1]
Males
Females
Region and area
White, by age group
Negro, by age group
White, by age group
Negro, by age group
20-24
25-44
45-64
65+
20-24
25-44
45-64
65+
20-24
25-44
45-64
65+
20-24
25-44
45-64
65+
Average, all areas
0.10
0.09
0.69
0.02
0.56
0.21
0.85
0.19
0.13
0.06
0.66
0.41
0.45
0.18
1.02
0.06
I. Hartford, Conn
0.60
0.92
0.60
0.00
1.20
0.67
0.00
0.00
0.60
0.00
0.00
0.00
0.50
0.00
0.25
0.00
II. Buffalo, N.Y
0.20
0.00
0.50
0.10
0.50
0.30
0.30
0.00
0.60
0.40
1.10
0.60
0.40
0.80
0.20
0.00
Newark, N.J
0.00
0.00
2.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.00
0.00
IV. Atlanta, Ga
0.17
0.17
0.17
0.17
0.17
0.17
0.75
0.75
0.33
0.33
0.33
0.33
0.33
0.33
0.75
0.75
Birmingham, Ala
0.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
3.00
0.00
V. Detroit. Mich
0.00
0.00
0.00
0.00
0.00
0.00
3.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
2.00
0.00
VI Galveston-Texas City, Tex
0.00
0.00
0.00
0.00
3.00
1.00
1.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
0.00
0.00
Oklahoma City, Okla
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.00
2.00
1.00
0.00
0.00
0.00
VIII. Denver, Colo
0.00
0.00
3.00
0.00
0.00
0.00
1.00
0.50
0.00
0.00
1.50
0.00
0.00
0.00
0.00
0.00
Salt Lake City, Utah
0.00
0.00
2.00
0.00
0.00
0.00
3.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
IX. Los Angeles, Calif
0.17
0.00
0.00
0.00
1.83
0.33
0.17
0.00
0.00
0.00
0.00
0.00
1.17
0.00
0.00
0.00
X. Seattle, Wash
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
2.00
0.00
0.00
3.00
0.00
&
BALD
98
Table
5.17. New applications for work filed during June 1969 at employment service local offices in selected areas
New applications
Both sexes
Female
Region and area
Total
Total
16-17
18-19
16-17
18-19
years
years
years
All ages
Teenagers
years
All ages
Teenagers
Total, all areas
182,876
70,982
29,766
38,909
I. Hartford, Conn
86,981
33,640
14,016
19,698
5,997
2,499
1,559
940
Lewiston-Auburn, Maine
2,797
1,206
771
435
657
321
221
100
317
153
II. Buffalo, N.Y
98
55
6,737
3,063
1,409
1,654
Newark, NJ
3,239
1,553
695
858
9,777
2,805
1,204
1,601
III. Baltimore, Md
4,780
1,444
636
808
13,852
6,830
3,715
3,115
IV. Atlanta, Ga
10,554
3,631
1,860
1,771
6,594
2,614
1,150
1,464
3,771
Birmingham, Ala
1,506
686
820
6,478
2,788
1,290
1,498
3,120
Charlotte, N.C.
1,296
547
749
2,441
902
489
413
Nashville, Tenn
1,237
433
225
208
2,968
1,476
817
659
V. Battle Creek, Mich
1,406
660
330
330
914
402
138
264
399
185
Cleveland, Ohio
45
140
6,981
3,546
1,702
1,844
3,214
Detroit, Mich
1,709
803
906
20,423
6,938
1,577
5,361
9,202
Milwaukee. Wis
3,440
799
2,641
5,895
2,393
1,351
1,042
2,430
Minneapolis-St. Paul, Minn
1,130
645
485
12,144
5,810
1,875
3,935
VI. EI Paso, Texas
4,812
2,526
808
1,718
3,721
1,932
1,055
877
1,544
777
Galveston-Texas City, Tex
388
389
2,076
865
388
477
815
393
New Orleans, La
171
222
5,292
1.630
206
1,424
2,744
972
Oklahoma City, Okla
129
833
4,713
2,243
1,251
992
VII.
2,334
Wichita, Kans
1,237
522
715
2,409
1,013
(1)
(1)
VIII. Denver, Colo
1,062
319
(1)
(1)
10,232
4,692
1,079
3,613
Salt Lake City, Utah
4,234
1,942
446
1,496
3,533
1,321
(1)
(1)
IX. Los Angeles. Calif
1,614
(1)
(1)
403
42,270
13,077
6,710
6,367
X. Seattle, Wash
18,548
6,182
3,135
3,047
6,772
1,849
580
1,269
2,808
946
277
669
1 Information not available.
Table 5.18. Active applications for work on file at the end of June 1969 at employment service local offices in
selected areas
Active file
Both sexes
Region and area
Female
Total
Total
16-17
18-19
16-17
18-19
years
years
All ages
Teenagers
years
years
All ages
Teenagers
Total, all areas
404,300
103,449
44,186
57,414
191,763
50,649
21,474
28,375
1. Hartford, Conn
10,284
1,849
(1)
(1)
Lewiston-Auburn, Maine
4,232
800
(1)
2,948
(1)
1,290
437
853
11. Buffalo, N.Y
1,536
696
230
466
16,819
6,750
3,496
3,254
Newark, N.J
9,820
3,883
2,070
36,217
1,813
7,689
3,591
4,098
III. Baltimore, Md
19,094
4,094
31,428
1,805
2,289
(1)
(1)
IV. Atlanta, Ga
(1)
15,717
(1)
13,759
(1)
(1)
4,418
1,863
2,555
Birmingham, Ala
8,249
2,454
1,198
18,929
1,256
6,287
2,936
3,351
Charlotte, N.C
10,175
3,143
1,297
5,540
1,297
1,846
602
695
Nashville, Tenn
3,009
865
383
4,771
- 482
922
544
378
V. Battle Creek, Mich
2,509
649
341
1,978
308
631
359
272
Cleveland. Ohio
817
309
184
16,491
125
5,168
1,884
3,284
Detroit. Mich
7,763
2,397
841
38,149
9,687
1,556
2,671
7,016
Milwaukee, Wis
23,480
5,111
1,321
18,542
3,790
6,742
4,276
2,466
Minneapolis-St. Paul, Minn
7,281
3,478
16,932
2,469
1,009
9,015
5,629
3,386
VI. EI Paso, Tex
7,047
4,371
9,565
2,684
1,687
4,329
2,148
2,181
Galveston-Texas City, Tex
3,813
1,824
809
6,050
1,809
1,015
832
977
New Orleans, La
2,200
761
294
11,721
467
2,045
173
1,872
Oklahoma City, Okla
5,603
1,281
100
9,211
1,181
3,294
1,957
1,337
VII. Wichita, Kans
4,963
1,588
804
6,422
784
(1)
(1)
(1)
VIII. Denver, Colo
2,805
(1)
(1)
17,108
7,844
(1)
1,803
6,041
6,331
Salt Lake City, Utah
2,903
666
6,970
2,237
(1)
(1)
(1)
IX. Los Angeles, Calif
3,210
(1)
(1)
131,192
19,277
(1)
8,355
X. Seattle. Wash
10,922
56,002
8,606
3,713
18,094
4,893
3,106
630
2,476
7,839
1,436
265
1,171
4 Information not available.
3 To preserve comparability with "Teenagers" column, "Total all ages" does not
include figures for Baltimore, Lake City, and Wichita areas for which teenager
data were not reported.
FORD
CHAPTER VI
Wage Expectations
Do teenagers have unrealistic expectations
the same age-sex-color group, with comparable
about how much they can earn? Is the problem
school status, educational attainment, and abili-
of teenage unemployment attributable to the
ties; located in the same area; and looking for
unwillingness of teenagers to accept available
or holding comparable jobs in the same indus-
employment at prevailing wages? Some evi-
try. Available tabulations permit only more lim-
dence relevant to those questions is available
ited comparisons.2
from the National Longitudinal Studies and the
Wages received by employed young men, the
Urban Employment Surveys.
wage required by those unemployed to accept
employment, and the wage required to induce
National Longitudinal Studies
persons outside the labor force to enter are
given in table 6.1. Although these comparisons
Tabulations from the Longitudinal Studies 1
control for age and color alone, a few interest-
provide data for young men as of the October
ing facts emerge.
1967 survey week. At the time, the minimum
Both wages earned and wage expectations in-
wage of $1.40 for previously covered workers
crease with age for both racial groups and are
and $1 for newly covered workers had been in
higher for whites than for other races. Con-
effect about 9 months.
trary to the hypothesis of unreasonable expec-
The test of "realism" that can be imposed is
tations, the average wage expected by unem-
based upon a comparison of wage expectations
ployed young men is, within any age-color
of persons unemployed or out of the labor force
group, lower than that for the employed. How-
with wages actually received by those who are
ever, the proportion of unemployed teenage
employed. If expectations are realistic, the rate
males willing to accept employment at a wage
of pay an unemployed person would require to
below $1.40 an hour was less than the propor-
accept employment should be no more than that
tion of employed teenagers actually receiving
received by comparable individuals who are em-
less than $1.40, except among Negroes and
ployed.
other races 15-17 years old. The tendency for
Ideally, comparisons should be exact. That is,
wage expectations for most unemployed teenage
comparisons should be made among persons in
groups to fall in the $1.40-$1.99 range to a
greater extent than is true of wages received by
This chapter was prepared by Harvey R. Hamel and
employed teenagers suggests the possibility that
Melvin Goldberg, of the Office of Manpower and Em-
expectations may be affected by the level of the
ployment, and Thomas W. Gavett of the Office of Wages
and Industrial Relations, Bureau of Labor Statistics. The
minimum wage.
section based on the national longitudinal materials was
We can refine the analysis by restricting the
written by Gavett and the section on the UES data by
comparison to those teenagers enrolled in
Hamel and Goldberg.
school.3 See table 6.2. Among the 15- to 17-
Footnotes begin on p. 101, tables on p. 102.
99
100
year-old group, wage expectations and wage
The majority of the teenage residents of all
levels received are about the same. Among the
six CEP areas are Negro and other races. The
18- to 19-year-old group, however, wage expec-
proportions are as follows: Chicago, 98 per-
tations among unemployed whites are above the
cent; Detroit, 83 percent; Atlanta, 82 percent;
wage levels received by those employed. For Ne-
New York City, 69 percent; Houston, 60 per-
groes and other races in that age group, aver-
cent; and Los Angeles, 52 percent. Nearly half
age expectations and wages received are almost
the teenage residents of the Los Angeles area
the same. Both white and other 18-19-year-olds
and about one-fifth of the Houston area popula-
who are unemployed are less willing to take low
tion are of Mexican descent and nearly one-fifth
wage jobs. Whether this group, which includes
of the New York City teenagers are Puerto
males finishing high school or in college, has
Rican.
unreasonable expectations or whether there are
other factors that explain this peculiar result is
Urban Employment Surveys
unknown.
More surprising than the differences between
The data from the National Longitudinal
the employed and unemployed teenagers is the
Studies refer to young males throughout the
fact that teenagers outside the labor force could
country in 1967. Some insight into wage expec-
be drawn into employment at a lower wage, on
tations of male and female teenagers in differ-
the average, than that which employed teenag-
ent areas of the country, especially those lo-
ers receive or that which unemployed teenagers
cated in poverty areas, is available from the
expect. One might speculate that other consid-
Urban Employment Survey, a survey of resi-
erations are included-those out of the labor
dents of Concentrated Employment Program
force are more likely to be students and poten-
areas in six large cities.5 Findings from the
tially interested in a part-time job at a conven-
CEP areas of all six cities suggest that wage
ient location-but available tabulations do not
demands of both currently unemployed teenag-
permit any finer comparisons.
ers and employed teenagers (when they last
What conclusions can be drawn? The com-
sought work)⁶ are not generally unreasonable
parisons made are limited since some relevant
relative to actual wage rates. However, the data
factors could not be held constant. It seems,
also suggest that the wage expectations of a
however, that the average wage expected by the
small proportion of unemployed male teenagers
unemployed teenager is below that received by
in the New York and Chicago areas were un-
realistic in terms of the actual wages being paid
those employed. The unemployed teenager ap-
to employed teens. A detailed look at two of the
pears, however, slightly disinclined to accept
six cities, showing somewhat different results,
the lowest wage jobs compared, at least, with
follows.
his employed counterpart. However, there are
large numbers of teenagers, both unemployed
Chicago
and out of the labor force, who did indicate a
willingness to accept low-wage employment-at
Data from the UES for the Chicago poverty
least if the right job came along.
area (covering the period July 1968-June 1969)
The data on expected and actual earnings
show that the median wage expected by both
refer to the 12-month period July 1968-June
jobless teenage boys and girls was not unrealis-
1969. Information on wage expectations was
tic. Jobless teens were seeking about the same
collected from employed and unemployed teen-
level of hourly earnings ($1.70) as the actual
agers (16-19 years old) in each area who looked
wages earned by employed teenagers in the area
for work at any time during the year. Those
($1.77). However, the proportion of all cur-
who did look for work were asked the following
rently jobless teens (25 percent) who were will-
question, "The last time you looked for a job,
ing to accept less than $1.60 an hour was
what was the lowest pay you would have
smaller than the proportion of employed teen-
accepted?"
agers (41 percent) who were actually earning
101
these low wage rates. Thus about 16 percent of
Atlanta
all unemployed teenagers appeared to be seek-
ing wages higher than employed teens were ac-
Atlanta UES results more consistently indi-
tually receiving.
cate that wage expectations of teenagers were
Teenage girls generally set lower sights in
not unrealistic in terms of prevailing wages.
their wage expectations than teenage boys. The
Unemployed teenagers in Atlanta were actually
average wage expectation of unemployed girls
willing to accept the same or lower wages than
was $1.66 compared with $1.81 for unemployed
their employed counterparts were already re-
boys. Neither of these averages were substan-
ceiving. One out of every three unemployed
tially different from the average wages actually
teenage boys and two out of every three teenage
being earned by employed teens.
girls expected to receive less than $1.60 an
One out of every three unemployed teenage
hour; roughly the same proportion of boys and
girls was willing to accept less than $1.60,
even fewer of the girls (55 percent) actually
somewhat less than the proportion of teenage
earned that wage during the July 1968-June
girls (46 percent) who were actually earning
1969 period. For both boys and girls, the pro-
that amount. There was little difference be-
portion of unemployed teenagers willing to ac-
tween the wage expectations of currently unem-
cept jobs at under $1.60 was greater than the
ployed girls and that of employed girls when
proportion of employed teenagers who had been
they last sought work; one out of every three in
willing to accept such wages the last time they
each group was willing to accept less than
looked for work.
$1.60.
The fact that there is little difference between
Teenage boys appeared to be less realistic
the wage expectations of most jobless youth and
about their wage expectations than girls. Only
the wages actually being paid to employed teen-
about 14 percent of the unemployed youth were
agers suggests that wage demands of most teen-
expecting less than $1.60, whereas about 36 per-
agers were not unreasonable in these poverty
cent of the employed youth were actually earn-
areas. Rather, it appears that wage expecta-
ing that amount. Thus, about 25 percent of the
tions of most teenagers are heavily influenced
unemployed boys were apparently seeking
by current wage rates. Although many other
wages higher than the going wage.
factors such as job skills, experience, and edu-
This does not mean that jobless teenagers,
cational background have to be taken into ac-
especially boys, were expecting high wage rates.
count to draw definitive conclusions, it nonethe-
Only one-fourth of the jobless boys and one-
less appears that only a very small proportion
tenth of the jobless girls expected to earn $2.00
of the teenagers in these areas had high wage
an hour or more; a significantly greater propor-
demands. Evidently, the majority of poverty
tion of the employed teens were actually earn-
areas teens, like most new and inexperienced
ing those wage rates-nearly one-half of the
workers, realistically adjust their wage expec-
boys and nearly one-third of the girls.
tations during their search for employment.
FOOTNOTES
1 The longitudinal studies are briefly described in
constant, including interaction terms, would be almost
chapter 3 of this study. The wage data are not always
impossible.
strictly wage rates; note the comments on page 57
3 Data do not permit a comparison of those not
of chapter 3. The basic tabulations for this section
enrolled in school.
were prepared by the Ohio State University group.
4 The study of "Out-of-School Youth," BLS Special
They are not responsible, however, for the analysis or
Labor Force Report 47, 1964, should be mentioned. It
conclusions in this section.
indicates that in February 1963, earnings expectations
3 Even if the universe of teenagers were covered by
among the unemployed were lower than earnings re-
a survey, the number of factors which should be held
ceived by employed youth. The study controlled for
102
sex and school status and provides data for those 16-21
separate manpower programs to concentrate the impact
-no finer age breaks are available. This sheds no
of these programs in specific neighborhoods.
light, however, on the expectations of persons out of
6 For purposes of simplicity in the remainder of this
the labor force.
section, wage expectations of employed teenagers when
5 The cities are Atlanta, Chicago, Detroit, Houston,
they last sought work will generally be described simply
Los Angeles, and New York City. CEP refers to target
as "the expected wage of employed teenagers." See
areas in which the Department of Labor has combined
previous note.
Table 6.1. Rate of pay required to accept employment,
Table 6.2. Rate of pay required to accept employment,
those unemployed in 1967, rate of pay required to enter
those unemployed in 1967, 1967 hourly rate of pay, those
labor force, those out of labor force in 1967, 1967 hourly
employed in 1967, by age and color: men 15-19 years of
rate of pay, those employed in 1967, by age: men 15-25
age enrolled in school
years of age, by color
Hourly pay requirements
Hourly pay requirements
Total
Age and 1967
number
Mean
Total
labor force status
(thou-
Less
$1.40
$2.00
$3.00
pay
Age and 1967
number
Mean
sands)
than
to
to
or
required
labor force status
(thou-
Less
$1.40
$2.00
$3.00
pay
$1.40
$1.99
$2.99
more
or
sands)
than
to
to
or
required
earned
$1.40
$1.99
$2.99
more
or
earned
Whites
Whites
Age 15-17:
Unemployed
353
47.5
51.1
1.4
0.0
$1.32
Age 15-17:
Employed
1,655
51.1
37.7
7.1
4.1
1.55
Out of labor force
808
51.1
44.5
3.9
0.5
$1.32
Age 18-19:
Unemployed
400
43.0
50.9
4.8
.0
1.35
Unemployed
111
23.8
46.6
21.4
5.0
1.73
Employed
1,968
47.5
37.9
9.9
4.7
1.59
Employed
612
37.9
37.4
19.6
8.2
1.68
Age 18-19:
Out of labor force
196
13.8
57.2
23.0
6.0
1.69
Unemployed
141
18.0
46.1
29.7
6.2
1.76
All others
Employed
1,493
25.2
33.6
30.9
10.3
1.93
Age 20-25:
Out of labor force
140
23.6
30.9
19.2
26.2
2.08
Age 15-17:
Unemployed
121
13.3
38.0
21.7
27.1
2.25
Unemployed
79
62.8
32.0
5.2
0.0
$1.23
Employed
4,848
5.4
15.8
42.0
36.8
2.78
Employed
207
59.7
31.2
6.3
2.9
1.40
Age 18-19:
Unemployed
25
39.2
52.5
4.1
4.1
1.49
All others
Employed
62
60.1
13.5
21.3
5.1
1.50
Age 15-17:
Out of labor force
161
64.8
30.5
3.3
1.3
$1.30
Unemployed
99
58.8
33.5
7.7
.0
1.30
Employed
297
51.6
35.6
9.4
3.4
1.53
Age 18-19:
Out of labor force
19
(1)
(1)
(1)
(:)
(1)
Unemployed
42
28.8
48.1
20.5
2.6
1.61
Employed
212
37.6
29.8
22.3
10.3
1.75
Age 20-25:
Out of labor force
26
21.5
48.9
29.6
.0
1.89
Unemployed
41
15.7
36.3
43.9
4.1
2.01
Employed
670
14.0
33.4
37.7
14.9
2.14
1 Not available.
Note: Percent distributions exclude respondents willing to accept any wage offered.
Totals for "out of the labor force" exclude persons who were unwilling to accept a job
regardless of wage.
103
Table
6.3. Expected and actual wages of employed and unemployed 16-19 year-olds in CEP areas, July 1968-June
1969 period accumulated
Atlanta
Chicago
Wage level
Expected
Expected wage
Expected
Expected wage
wage of
Actual wage
of employed
wage of
Actual wage
of employed
unemployed
of employed
when they last
unemployed
of employed
when they last
sought work
sought work
Both sexes
600
2,100
1,600
Percent distribution
1,600
4,900
2,300
100.0
100.0
100.0
100.0
Less than $1.60
100.0
100.0
50.0
42.9
37.5
25.0
$1.60-1.99
40.8
30.4
50.0
33.3
56.3
56.3
$2.00 and over
20.4
39.1
23.8
6.3
18.8
Median wage
38.8
30.4
$1.45
$1.69
$1.63
$1.70
$1.77
$1.73
Boys
300
1,000
900
700
Percent distribution
2,500
1,200
100.0
100.0
100.0
100.0
Less than $1.60
100.0
100.0
33.3
30.0
22.2
14.3
$1.60-1.99
36.0
25.0
66.7
40.0
66.7
57.1
$2.00 and over
16.0
25.0
30.0
11.1
28.6
Median wage
48.0
50.0
$1.68
$1.75
$1.69
$1.81
$1.88
$2.00
Girls
300
1,100
700
900
Percent distribution
2,400
1,100
100.0
100.0
100.0
100.0
Less than $1.60
100.0
100.0
66.7
54.5
57.1
33.3
$1.60-1.99
45.8
36.4
33.3
27.3
42.9
55.5
$2.00 and over
25.0
54.5
18.2
11.1
Median wage
29.2
9.1
$1.23
$1.53
$1.53
$1.66
$1.68
$1.66
Detroit
Houston
Both sexes
1,700
3,100
1,900
Percent distribution
1,100
2,800
2,000
100.0
100.0
100.0
100.0
Less than $1.60
100.0
100.0
47.1
38.7
36.8
72.7
$1.60-1.99
53.6
60.0
35.3
19.4
26.3
27.3
$2.00 and over
25.0
40.0
17.6
41.9
36.8
Median wage
21.4
$1.64
$1.81
$1.72
$1.24
$1.55
$1.45
Boys
900
1,800
1,000
400
Percent distribution
1,900
1,200
100.0
100.0
100.0
100.0
100.0
Less than $1.60
100.0
33.3
33.3
20.0
50.0
47.4
$1.60-1.99
50.0
33.3
11.1
30.0
50.0
26.3
$2.00 and over
50.0
33.3
55.6
50.0
Median wage
26.3
$1.79
$2.25
$2.00
$1.60
$1.62
$1.60
Girls
800
1,300
900
700
900
Percent distribution
800
100.0
100.0
100.0
100.0
100.0
Less than $1.60
100.0
62.5
46.2
55.6
85.7
66.7
$1.60-1.99
75.0
37.5
30.8
22.2
14.3
$2.00 and over
22.2
25.0
23.1
22.2
11.1
Median wage
$1.53
$1.68
$1.53
$1.17
$1.38
$1.30
New York City
Los Angeles
Both sexes
3,600
10,900
5,700
500
Percent distribution
2,000
900
100.0
100.0
100.0
100.0
100.0
Less than $1.60
100.0
33.3
33.0
36.8
30.0
$1.60-1.99
11.1
44.4
23.9
43.9
80.0
25.0
$2.00 and over
44.4
22.2
43.1
19.3
20.0
45.0
Median wage
44.4
$1.76
$1.81
$1.70
$1.69
$1.83
$1.86
Boys
2,200
5,900
3,000
300
1,700
600
Percent distribution
100.0
100.0
100.0
100.0
100.0
Less than $1.60
100.0
27.3
37.3
40.0
$1.60-1.99
25.0
50.0
25.4
43.3
66.7
25.0
$2.00 and over
33.3
22.7
37.3
16.7
33.3
50.0
Median wage
66.7
$1.79
$1.74
$1.69
$1.71
$2.00
$2.08
Girls
1,400
5,000
2,700
200
800
Percent distribution
300
100.0
100.0
100.0
100.0
100.0
Less than $1.60
100.0
42.9
28.0
33.3
37.5
$1.60-1.99
33.3
35.7
22.0
44.4
100.0
$2.00 and over
25.0
66.7
21.4
50.0
22.2
37.5
Median wage
$1.68
$2.00
$1.71
$1.68
$1.75
$1.68
Note: Medians based on detailed wage rate intervals, not shown.
CHAPTER VII
Teenage Earnings and Family Incorne
How much do teenagers earn? Are they
More relevant is the difference in percent
major contributors to family income? Retabula-
contributions of teenager's earnings to family
tion of materials from the February and March
income among families at various income
1967 supplements to the Current Population
levels.² As shown in table 7.3, the relative im-
Survey provide some pertinent data.¹
portance of teenager's earnings is inversely
In 1966, about 40 percent of all 16-19-year-
proportionate to family income. Among families
olds had no wage and salary income, either be-
with an income of less than $3,000 a year, about
cause they were not employed or because their
65 percent of the teenagers contributed less
only employment was as unpaid family work-
than 5 percent to family income, either because
ers or in self-employment (table 7.1). Of those
the teenagers had no earnings or insignificant
who were employed sometime during the year,
earnings relative to family income (the latter
73 percent earned less than $1,000 a year. Less
was more likely to be true among higher income
than 10 percent of all teenagers were members
families). The proportion of teenagers contrib-
of poor families-those with incomes below
uting little to family income rose to about 69
$3,000 a year. Almost 38 percent were members
percent among families with incomes of
of families with incomes of $5,000 to $10,000 a
$10,000-$15,000 and to 77 percent among fami-
year, and about 41 percent were in families
lies with income of $15,000 or more a year.
with incomes of $10,000 or more.
Conversely, among families with incomes of less
As might be expected, the teenager's contri-
than $3,000 a year, 13 percent of the teenagers
bution to family income was directly propor-
contributed 25 percent or more of family income
tional to his total wage and salary income.
compared with 4 percent of the teenagers in
Among teenagers earning $500-$1,000, for ex-
families with incomes of $10,000 or more.
ample, the median teenager's earnings as a per-
A larger proportion of male than female
cent of total family income was 7.5 percent
teenagers were major contributors to family in-
come among both poor and prosperous families.
(using the midpoint of reported ranges). The
The proportion of male teenagers contributing
median percentage contribution rose to 22.5
25 percent or more of family income was about
percent among those teenagers earning $2,000
twice as large among families with incomes of
to $3,000, and to 35 percent among those earn-
less than $3,000 (about 17 percent of the men
ing over $4,000 a year (table 7.2).
and 8 percent of the women). Among families
with incomes of $10,000 or more, 4 percent of the
This chanter was prepared by Thomas W. Gavett,
male but only 3 percent of the female teenagers
Office of Wages and Industrial Relations, Bureau of
contributed 25 percent of family income. It is
Labor Statistics. The basic tabulations for this chapter
also consistently true that a larger proportion
were prepared by Robert L. Stein, assisted by Rowena
of female teenagers are minor (less than 5 per-
Lipscomb, in the Office of the Chief Economist.
Footnoes appear on p. 105, tables on p. 106.
cent) contributors to family income. Even if
104
?.` FORD
105
minor contributors are excluded, male teenag-
full-time year-round.³ About 40 percent of all
ers are more frequently major contributors to
such teenagers contributed 25 percent or more
family income.
of total family income. Apparently, most of the
Younger teenagers (16-17 year-olds) contri-
teenagers in this small group are 18-19 years
bute much less to family income than those 18-
old and members of families with annual in-
19 years old. Only 9 percent of the younger
comes of $10,000 or more.
teenagers in low-income families contributed 25
The information collected in the February-
percent or more of family income compared
March 1967 supplements to the Current Popula-
with 26 percent of the older teenagers. In fam-
tion Survey did not permit calculation of an
ilies receiving $10,000 or more, less than 1 per-
hourly wage rate. Hence, we do not know
cent contributed 25 percent of family income
whether teenagers' annual wage and salary
compared with 11 percent for the older teen-
earnings were low primarily due to short hours
agers. Similarly, the proportion of minor con-
and few weeks of work or also to low wage
tributors (less than 5 percent of family in-
rates. The number of full-time year-round teen-
come) was about 40 percent greater among 16-
agers is too few to draw meaningful infer-
to 17 year-olds in poor families and 63 percent
ences about wage rates from these statistics.
greater in families receiving $10,000 or more.
The few general conclusions are obvious.
Teenagers are more likely to be major contri-
Over 90 percent of all teenagers are not mem-
butors to families headed by a woman than to
bers of poor families. Over 80 percent earned
husband-wife families. Although 13 percent of
little (less than $1,000) or nothing and conse-
all 16-19 year-olds in families with incomes
quently contributed less than 10 percent to fam-
below $3,000 contributed 25 percent or more of
ily income. Less than 6 percent of all teenagers
contributed a significant share (25 percent or
family income, the proportion was 15 percent
more) to family income. When working, about
among families headed by a woman and less
75 percent usually work part time, and ex-
than 10 percent among husband-wife families.
tremely few work full-time year-round.
The differences are more striking among fami-
Except in a minority of cases (but these are
lies receiving $10,000 or more. For all teenag-
important), it is difficult to argue that the earn-
ers, 4 percent were major contributors 3 per-
ings of teenagers are important to the family.
cent in husband-wife families, and 16 percent in
More likely, the teenager's earnings provide
the relatively small number of families headed
some financial independence from the family-
by women receiving $10,000 or more in income.
earnings gained while learning about the world
Only 4 percent of all 16-19 year-olds worked
of work.4
FOOTNOTES
1 The February supplement provided information on
cases where two teenagers or more contributed to the
the number of weeks worked in 1966 and whether the
same family's income.
individual usually worked full or part time. The March
3 Year-round means 50-52 weeks, and full-time means
supplement provided information on wage and salary
the individual usually worked 35 hours a week or more
and on other forms of income for each individual and, by
when he worked. The data include unpaid family
aggregation, all individuals in the family. Data for this
workers and the self-employed.
study were derived from the person-family tape in the
See also "Unemployment in the American Family,"
BLS microtape library.
Monthly Labor Review, October 1968 (Special Labor
2 The tabulations relate each teenager's earnings to
Force Report No. 99), which was based on the same
family income. Tabulations are not available to cover
supplements to the Current Population Survey.
FORD
RALD
106
Table 7.1. Distribution of 16-19 year-olds, by wage and
salary income and total family income, 1966
(In thousands)
Total family income
Wage and salary
Total
income
Less
$2,000
$3,000
$5,000
$7,000
$10,000
$15,000
than
to
to
to
to
to
or
$2,000
$2,999
$4,999
$6,999
$9,999
$14,999
more
None
4,855
346
267
620
812
1,137
1,102
571
$1 to $499
3,661
226
183
456
519
830
897
545
$500 to $999
1,639
33
54
155
216
391
505
285
$1.000 to
$1,499
760
7
19
55
109
189
227
154
$1,500 to
$1,999
377
1
9
27
44
87
143
66
$2,000 to
$2.999
429
1
6
31
46
91
188
66
$3,000 to
$3,999
211
0
0
10
11
64
80
46
$4,000 to
$4,999
90
0
0
1
6
13
41
29
$5,000 or more
83
0
0
0
0
14
31
38
Totals
12,105
614
543
1,355
1,763
2,816
3,214
1,800
Table 7.2. Distribution of 16-19 year-olds, by wage and sa lary earnings and percent of total family income contributed
by the teenager
Percent of family income
Wage and salary income
Total
Less
5 to
10 to
15 to
20 to
25 to
30 to
40 to
50 to
75 or
than 5
9.9
14.9
19.9
24.9
29.9
39.9
49.9
74.9
more
0.0
None
100.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$1 to $499
100.0
81.1
12.7
3.0
1.3
.7
.3
.4
.1
.3
.2
$500 to $999
100.0
27.1
46.9
13.5
5.6
3.0
1.3
1.0
.5
.7
4
$1,000 to $1,499
100.0
3.4
35.8
29.7
15.6
6.6
1.8
3.6
1.8
1.5
.3
3.2
1.9
1.6
$1,500 to $1,999
100.0
.3
11.2
29.5
27.4
13.6
5.1
6.4
$2,000 to $2,999
100.0
.2
3.1
14.1
27.0
19.0
11.7
11.0
6.8
5.6
1.4
$3,000 to $3,999
100.0
.0
1.0
1.0
11.1
21.6
13.5
28.8
13.0
5.8
4.3
$4,000 to $4,999
100.0
.0
.0
.0
6.7
14.6
16.9
31.5
14.6
11.2
4.5
9.9
25.9
28.4
25.9
4.9
$5,000 or more
100.0
.0
.0
.0
1.2
3.7
Totals
100.0
68.5
12.9
6.0
4.2
2.6
1.4
2.0
1.1
0.9
0.4
Note: Because of rounding, sums of individual items may not equal totals.
Table 7.3. Distribution of 16-19 year-olds, by total family income and percent of total family income contributed by
the teenager
Percent of family income
Total family income
Total
Less
5 to
10 to
15 to
20 to
25 to
30 to
40 to
50 to
75 or
than 5
9.9
14.9
19.9
24.9
29.9
39.9
49.9
74.9
more
1.9
3.8
1.7
4.4
3.4
$0 to $1,999
100.0
64.7
6.1
4.6
5.1
4.3
$2,000 to $2.999
100.0
64.9
8.2
8.2
6.1
2.8
1.9
1.9
2.2
2.2
1.7
100.0
64.5
12.2
7.0
3.8
3.5
1.6
2.8
1.8
1.9
.9
$3,000 to $4,999
$5.000 to $6,999
100.0
66.8
14.4
5.5
5.2
2.8
1.2
2.0
1.3
.8
.1
7.3
2.3
1.4
2.2
1.1
.6
.1
$7,000 to $9.999
100.0
67.6
13.8
3.5
$10,000 to $14,999
100.0
68.5
13.8
5.8
5.1
2.6
1.3
1.8
.7
.3
.0
100.0
77.0
12.8
3.9
2.0
1.8
1.1
is
.4
.0
.0
$15,000 or more
Totals
100.0
68.5
12.9
6.0
4.2
2.6
1.4
2.0
1.1
0.9
0.4
Note: Because of rounding, sums of individual items may not equal totals.
:
FORD
CHAPTER VIII
Study of Full-time Student and Learner
Certification Programs Under the
Fair Labor Standards Act
This chapter provides information on a sur-
Establishments in the South used a smaller
vey of establishments which applied for and re-
proportion of their man-hours than did estab-
ceived certificates to employ learners and full-
lishments in the rest of the Nation. The wage
time students at subminimum rates under the
incentive to employ full-time students at mini-
Fair Labor Standards Act. The analysis is in-
mum rates is less in the South where prevailing
tended to help determined whether submini-
wages tend to cluster around the minimum
mum wage rates encourage the employment of
wage.
teenagers, and the extent to which employers
Of the 15 million man-hours used to employ
used or failed to use certificates. A discussion of
full-time students at subminimum rates, almost
the scope and method of the survey and a list
a fourth were by establishments of the
of reference tables appear in the appendix.
S.S.Kresge Co. (over 2 million) and the
G.C.Murphy and Morgan Lindsey Co. (almost
Highlights of the study
1.4 million). Establishments in 11 enterprises,
including the Kresge and Murphy chains, used
Authorization to employ full-time students at
half of all man-hours.
subminimum rates was underutilized. Only 42
The most frequently cited reason given for
percent of the 36 million man-hours authorized
not using or not fully utilizing the certificates
at 85 percent of the satutory minimum wage
was that the establishments were completely
were used. One-fifth of the 4,615 establishments
staffed. Other reasons more commonly cited in
did not use their authorizations. All but 2 per-
order of importance were: Recordkeeping was
cent of the full-time student man-hours were
too burdensome, full-time students were not
used to employ teenagers.
willing to work at subminimum wages, limita-
tions spelled out in the certificates, and full-
This chapter was prepared by Clara F. Schloss,
time students were unsatisfactory workers.
formerly of the Office of Research and Legislative
Only one-third of the 264,000 man-months
Analysis, Wage and Hour and Public Contracts Divi-
which had been authorized for the employment
sions. Peyton K. Elder was responsible for the analysis,
Maurice Berk for the tabulations, and William L. Cato
of learners were used. Of the over 84,000 man-
for the data processing.
months used to employ learners, almost one-
Footnotes and tables begin on p. 112.
third were used to employ teenagers. Almost all
FORD
107
108
of the 799 establishments holding learner cer-
schools and colleges that employ students in
tificates expressed a willingness to employ teen-
school-operated shops to assist then in defray-
agers.
ing their college expenses.
The 1961 Amendments to the Fair Labor
Learner and full-time student subminimum wage
Standards Act covered large numbers of work-
provisions and regulations
ers who had been traditionally outside the scope
of the act. The newly covered employees were
Section 14 of the Fair Labor Standards Act
primarily in large retail and service enter-
as originally enacted in 1938 authorized the em-
prises. The 1961 amendments expanded section
ployment of learners at minimum wages less
14 to include provisions for the employment of
than those required for regular workers. In en-
full-time students at subminimum wages in the
acting this provision, Congress intended to pro-
newly covered retail trade and service establish-
tect the welfare of experienced workers while
ments in occupations in which they ordinarily
encouraging the employment of untrained and
were employed under certificates granted pur-
inexperienced persons.
suant to regulations of the Administrator of the
In October 1938, the Administrator of the
Wage and Hour and Public Contracts Divisions.
Wage and Hour and Public Contracts Divisions
The regulations issued to implement this provi-
issued regulations governing the issuance of
sion established age limits of 14 through 18, a
certificates to employers whose employees were
full-time student minimum rate of 85 percent of
subject to the minimum wage provisions of
the statutory minimum wage rate, and proce-
FLSA. Congress intended to use subminimum
dures to determine the maximum number of
rates to employ learners in occupations involv-
full-time student man-hours an establishment
ing enough skill to necessitate an appreciable
could use. The hours authorized were based on
training period. A certificate would limit the
the number of full-time student man-hours
number of learners to replacements and those
which an establishment or similar establish-
needed to expand production. Certificates which
ment used during designated periods before the
would lower or depress the working standards
1961 amendments.
of experienced workers could not be issued.
The 1966 Amendments to the Fair Labor
These regulations have remained largely un-
Standards Act extended minimum wage protec-
changed since 1938 except that subminimum
tion to employees previously outside the scope
rates have been raised from time to time as the
of the act, including a large number in retail
minimum wage has increased. During the May
trade, service enterprises, and for the first time
1, 1968 to April 30, 1969 survey, the statutory
extended coverage to employees on large farms.
minimum wage was $1.60 an hour while the
The amendments also incorporated, in large
learner rates ranged from $1.45 to $1.575.
part, the regulations applicable to full-time stu-
Regulations were adopted in August 1940
dents, which had been issued after the 1961
governing the issuance of special certificates for
amendments, except that the upper age limit
the employment of student-learners at submini-
was specifically excluded. The provisions of the
mum rates if it could be shown that the stu-
revised section 14 also applied to newly covered
dents were engaged in a bona fide vocational
farm workers. For employees in retail trade
training program. The student-learner certifi-
and service activities subject to the minimum
cation program was designed to encourage
wage before the 1966 amendments, the full-time
part-time vocational training programs by ac-
student subminimum rate applicable during the
credited institutions.
survey period was $1.36 an hour, or 85 percent
Regulations were adopted later providing for
of the $1.60 an hour minimum wage otherwise
the issuance of special certificates to employ
applicable. The subminimum rate for full-time
student workers at subminimum wages. These
students in the three newly covered areas was
certificates are issued primarily to Seventh Day
85 percent of $1.15, or $.978 an hour, from the
Adventist schools and to other denominational
beginning of the survey period in May 1, 1968,
FORD
GERALD
109
until January 31, 1969, and 85 percent of $1.30
cates and the number of student-workers au-
or $1.105 an hour thereafter.
thorized increases slightly through the 1940's
and 1950's until 1960, a year before the enact-
History of the certification programs
ment of the 1961 amendments to the Fair Labor
Standards Act, when 38 certificates were
LEARNERS. The number of learner certifi-
granted and 1,412 student-workers were au-
cates in effect and the estimated number of
thorized. Since 1960 the number of certificates
learners authorized has varied. During the first
declined to 19 in the first three quarters of
5 years after enactment of the Fair Labor
1969. The number of student-workers author-
Standards Act, employers requested and were
ized declined to 1,146 in fiscal 1968 but in-
granted substantial numbers of certificates. For
creased to 1,374 in the first three quarters of
example, 3,790 learner certificates were in effect
fiscal 1969.
and 50,152 learners were authorized at the end
of fiscal year 1942. As the $.40 an hour mini-
FULL-TIME STUDENTS. Since the full-time
mum wage, which was fully applicable to cov-
student certification program was implemented
ered workers in 1944, became less meaningful,
in 1962, the long-term trend has been an overall
fewer employers requested certificates. At the
increase; a significant expansion occurred in
end of fiscal year 1949, only 20 learner certifi-
the number of certificates applied for and in
cates were in effect. At the end of fiscal 1950,
effect following the 1966 amendments when the
shortly after the minimum wage was increased
extent of coverage of the statutory minimum
to $.75 an hour, the program reached a peak in
wage to which the full-time student minimum
certificates granted and learners authorized.
wages apply was broadly extended. At the end
Over 4,900 certificates were in effect and an es-
of the first fiscal year after the implementation
timate 73,351 learners were authorized. Since
of the 1961 amendments, 2, 344 full-time certif-
then, the overall trend in the volume of certifi-
icates were in effect. At the end of the fiscal
cates has been downward. Temporary increases
year just before the implementation of the 1966
in the number of certificates and learners au-
amendments; 2,579 certificates were in effect
thorized have occurred at the end of the fiscal
while 4,147 certificates were in effect a year
years coincident with the effective dates of in-
later following these amendments. By June 30,
creases in the minimum wage to $1 in 1956,
1969, the number of full-time student certifi-
$1.15 in 1961, and $1.25, in 1963. No similar
cates in effect had increased to 5,028.
spurts occurred in 1967 and 1968 following the
$1.40 and $1.60 rates. At the end of the 1969
SUMMARY. Trend data on certification activi-
fiscal year only 889 certificates were in effect
ties, particularly as they relate to learners and
and an estimated 20,726 learners were author-
ized.
full-time students, do not necessarily reflect
trends in usage. Over the years, several studies
STUDENT-LEARNERS. The student-learner certi-
have been made to determine the extent to
fication program also expanded after the
which learner certificates actually have been
statutory minimum wage was increased in
used. These studies and the present study indi-
1950, 1956, and 1961. Unlike the learner pro-
cate that use is not determined by the request-
gram, however, during the 1960's the student-
ing and obtaining of learner and full-time cer-
learner certification program has expanded
tificates.
from 4,577 student learners authorized in fiscal
year 1962 to 9,460 in fiscal year 1968, and 9,686
Full-time student certificates
in the first three quarters of fiscal year 1969.
ESTABLISHMENTS. A number of measures
STUDENT-WORKERS. The student-worker certi-
designed to show the extent to which the full-
fication program has followed a different
time student certification program is used indi-
pattern. The number of student-worker certifi-
cates marked underutilization. For example, 21
FORD
110
percent of the 4,615 establishments did not use
the man-hours were allocated to establishments
them during the May 1, 1968 to April 30, 1969
which fully utilized their authorized man-hours.
survey period. Of the remaining establishments
Overall, only 42 percent of the full-time stu-
which used at least part of the authorization,
dent man-hours authorized were used. By re-
one-tenth percent used it as much as 95 percent.
gion-Wage and Hour and Public Contracts Di-
Regions varied in their use of full-time stu-
visions jurisdictions-the proportion ranged
dent certificates. In the South, about 25 percent
from 32 percent in the Atlanta region to 61
of the establishments made no use of the certifi-
percent in New York region (table 8.2).
cates though 45 percent of the total had been
Regions varied in the extent of utilization of
granted to them. Outside the South, only about
full-time student man-hours at subminimum
17 percent of the establishments made no use of
wages. The South, with two-fifths of the 36 mil-
the certificates though 55 percent of the total
lion man-hours were authorized, used only one-
had been granted to them. Certificates were
third. In the remainder of the United States,
used fully in only 10 percent of the southern
almost half were used. One explanation for the
establishment compared with 14 percent outside
lower rate of utilization in the South may be
the South.
that the smaller differential between the wage
Establishments using full-time students cer-
authorized for full-time students-85 percent of
tificates varied by type of business. Variety and
the minimum wage-and prevailing wages. In
department stores constituted three-f-fths of the
the South there appears to be less incentive for
establishments with certificates but one-fourth
employers to use full-time students at submini-
did not use their authorizations. About one-
mum rates if more mature workers are availa-
third of the apparel stores, which had been au-
ble.
thorized almost a tenth of the certificates, did
Two of the 11 types of businesses for which
not use their certificates. However, among food
data were tabulated separately had almost 90
stores, which constituted a fourth of all estab-
percent of the 36 million full-time student
lishments with certificates, less than a tenth of
man-hours authorized-variety and department
the establishments did not use the authoriza-
stores made up 62 percent and food stores 26
tions. The remaining types of businesses, which
percent. Together these stores also had about 90
made up about 7 percent of all establishments
percent of the 15 million full-time student
with certificates, included 60 hospitals and
man-hours used. Although variety and depart-
nursing homes, all of which used at least some
ment stores were the largest users of full-time
of their authorization, 60 restaurants, about
student man-hours, food stores used 51 percent
half of which did not use their authorization, 68
of man-hours authorized, compared with 38
drug stores, a tenth of which did not use their
percent for variety and department stores
authorization, and 93 farms, about a sixth of
(table 8.3).
which did not use their authorization.
Only 8 percent of the full-time student man-
hours authorized for use by food stores were
MAN-HOURS. The extent of underutilization is
allocated to establishments which did not use
further confirmed by comparing the full-time
any of them compared with 26 percent in vari-
student man-hours authorized with the num-
ety and department stores.
ber of man-hours used. During the survey pe-
More significant than the regional or type of
riod, certificates authorizing almost 36 million
man-hours of full-time student employment
business data are special tabulations of man-
were available to employers. Of these, 21 per-
hours authorized and used by specific enter-
cent or 7.4 million full-time student man-hours
prises and establishments. Two large variety
were authorized to be used by establishments
store chains made significant use of the full-
which made no use of the certificates. About 72
time student program. Establishments of the
percent of the man-hours were authorized to be
S.S. Kresge Co. were granted 19 percent of the
used by establishments which used some but not
36 million man-hours authorized for the em-
all of the hours authorized. Only 7 percent of
ployment of students at subminimum wages. Of
FORD
111
the 15 million man-hours actually utilized dur-
performance of teenagers, burdensome record-
ing the year, the Kresge stores used 14 percent.
keeping and restrictions in the certificates.
Establishments of another major retail store
Regional variations for underutilization were
chain, G. C. Murphy and Morgan Lindsey were
not particularly marked. However, establish-
granted 8 percent of the authorized man-hours
ments in the South tended to cite fully staffed
and used 9 percent of all man-hours utilized.
and burdensome recordkeeping more frequently
Together, these two chains used 23 percent of
than did establishments outside the South,
all man-hours utilized. Furthermore, 11 enter-
while other sections found students unwilling to
prises, including the Kresge and Murphy
work at subminimum wages more frequently
chains, used 49 percent of the man-hours uti-
than did establishments in the South.
lized by all establishments which were granted
When the reasons for not utilizing or not
certificates. Also, of the 21 million full-time stu-
fully utilizing full-time certificates are classified
dent man-hours authorized but not used, the
by type of business, sharp differences show up.
Kresge and Murphy enterprises constituted 30
For example, food stores, hospitals, nursing
percent.
homes, and "other retail" stores were far more
Although the Kresge chain was the biggest
likely than other businesses to cite "fully
user of authorized full-time student man-hours,
staffed" as a reason for underutilization. Res-
179 establishments or 27 percent of the 671
taurants and drug stores were more likely to
Kresge stores which were granted certificates
blame the unwillingness of full-time students to
did not use their authorization. One hundred
work at subminimum wages. Apparel stores
and five of these nonusers were K-Mark dis-
were more likely to state that underutilization
count stores. Overall, Kresge stores used only
was due to burdensome recordkeeping, certifi-
30 percent of their 6.8 million authorized man-
cates restrictions, and delays in the verification
hours.
of employees' student status by their schools.
The Murphy chain, although using fewer
Tabulations designed to compare the relative
man-hours than Kresge, was more likely to use
importance of the reasons by degree of utiliza-
the man-hours it was authorized. Almost half of
tion provide some observable results. As ex-
the 2.8 million authorized man-hours were used
pected, establishments with higher rates of uti-
to employ full-time students at subminimum
lization more frequently cited fully staffed as a
wage rates by stores in the Murphy chain and
reason for less than full utilization. Not ex-
only 35 stores or about 10 percent of Murphy's
pected was that these establishments more fre-
363 establishments with certificates did not use
quently reported that full-time students were
any of the man-hours authorized. (See table
unsatisfactory. Establishments with no utiliza-
8.4.)
tion for less than 20 percent of their authorized
Reasons for less than full utilization of the
man-hours used were more likely to cite burden-
4,163 establishments which did not utilize or
some recordkeeping and company policy to pay
did not fully utilize their certificates 27 percent
the regular minimum wage.
of the over 8,000 responses indicated that the
establishments were fully staffed or were not in
UTILIZATION OF FULL-TIME STUDENT CERTIFI-
a position to add workers.
CATES TO EMPLOY TEENAGERS. Special tabula-
Among the other reasons given, four were of
tions by age group showed that full-time stu-
almost equal significance. About 11 percent of
dent certificates were used almost exclusively to
the reasons found teenagers unwilling to work
employ teenagers. Before the 1966 amendments,
at subminimum wages. A special tabulation indi-
full-time student regulations limited the use of
cates that about 300 of these 868 establishments
the certificates to teenagers 14 to 19 years of
which cited this reason went ahead and em-
age. The 1966 amendments specifically removed
ployed the teenagers at the regular minimum
the upper limit but workers 20 years of age and
wage. Almost as many of the responses blamed
over still constituted only 2 percent of all full-
underutilization on the unsatisfactory work
time student man-hours used.
FORD
CALD
112
Learners 1
The certificates state that employers may not
hire learners at subminimum wages if experi-
ESTABLISHMENTS. Of the 863 learner certifi-
enced workers are available.
cates granted to 799 establishments 2 in the 50
One-fifth of the establishments said that
States, only 6 percent were not used at all dur-
learners were not willing to work at submini-
ing the survey period. The proportion not used
mum wages. In addition, temporary operational
was consistently low whether on a regional or
problems, the finding that learners were not
on an industry basis. Although 94 percent of
satisfactory workers, and that the work was
the certificates were used, three-quarters either
undesirable each constituted fewer than a tenth
were not used or used to less than half of their
of all responses.
potential.
UTILIZATION OF LEARNER CERTIFICATES TO EM-
MAN-MONTHS. Even though most certificates
PLOY TEENAGERS. Most establishments with
were used to some extent, overall, only 32 per-
learner certificates used their certificates to em-
cent of the almost 264,000 man-months which
ploys teenager, 90-percent of the 765 establish-
were authorized for the employment of learners
ments utilized their certificates to employ teen-
at subminimum wages in the 50 States actually
agers and an additional 7 percent, would have
were used. Regions varied but were not particu-
hired teenagers if they had been available.
larly marked; establishments in the South used
Despite the expressed willingness of employ-
a larger proportion of the authorized man-
ers to hire youths 16 to 19 years of age as learn-
months than did those outside the South. How-
ers, teenagers represented only 31 percent of all
ever, since 73 percent of the man-months au-
the learner man-months utilized. Establish-
thorized were allocated to the South, that re-
ments in the South utilized a lower proportion
gion used about 64,000 or 76 percent of the total
of teenagers than did establishments outside the
learner man-hours at subminimum wages. (See
South.
table 8.7.)
FOOTNOTES
Reasons for less than full utilization of the
790 establishments in the 50 States which did
1 Although student-worker and student-learner certi-
not use or did not use fully their learner au-
ficates are authorized under the learner provision of
thorization, 28 percent of 1,462 responses give
section 14, they were not included in the survey because
as their reason that establishments were fully
of the small number of teenagers involved.
staffed and did not require additional workers,
2 Some establishments were granted both normal labor
also, that experienced workers were available.
turnover certificates and plant expansion certificates.
Table 8.1. Percent distribution of establishments with certificates authorizing the employment of full-time students
at wages below the statutory minimum, by degree of utilization and industry
[Data relate to certificates in effect on Apr# 30. 1969, and reflect utilization during the period May 1. 1968 to April 30, 1969]
United
Variety and
Apparel
Other
Hotels
Nursing
Other serv-
Degree of utilization
States
department
Food stores
stores
Drug stores
Restaurant
retail
and
Hospitals
homes
ice estab-
Agriculture
stores
stores
motels
lishments
Absolute number
4,615
2,843
1,142
307
68
60
34
2
34
26
6
93
1
100
100
100
100
100
100
100
100
100
100
100
100
Total
21
24
9
33
10
55
3
50
16
0
5
5
4
11
3
12
3
33
3
1-9
6
6
4
9
6
8
3
9
4
4
10-19
20-29
7
8
7
7
4
2
3
6
4
5
30-39
8
8
10
7
1
6
6
12
6
8
8
11
7
4
3
6
4
17
13
40-49
10
5
3
3
6
3
8
17
0
50-59
8
7
60-69
9
8
10
6
18
3
9
26
8
8
8
8
10
3
4
3
15
6
23
8
70-79
80-89
7
7
8
5
9
2
9
15
4
17
9
6
5
9
3
3
3
9
9
15
10
90-99
7
4
8
5
34
17
26
50
12
19
17
16
100
Note: Details may not add to totals due to rounding. Degree of utilization is the relationship of man-hours utilized to man-hours authorized.
113
Table 8.2. Numerical distribution of man-hours for which
Table 8.3. Numerical distribution of man-hours for which
the employment of full-time students was authorized at
the employment of full-time students was authorized at
rates below the statutory minimum and the number and
rates below the statutory minimum and the number and
percent of full-time student man-hours utilized, by region
percent of full-time student man-hours utilized, by industry
[Data relate to certificates in effect on April 30, 1969, and reflect utilization during
[Data relate to certificates in effect on April 30. 1969. and reflect utilization during
the survey May 1, 1968 to.April 30, 1969)
the period May 1. 1968 to April 30, 1969]
Number of
Number of
Percent of
Number of
Number of
Percent of
Region
man-hours
man-hours
utilization
Industry
man-hours
man-hours
utilization
authorized
utilized
authorized
utilized
United States
35,787,183
15,014,347
42
United States
35,787,183
15,014,347
42
Atlanta
4,661,058
1,485,175
32
Birmingham
1,857,650
691,847
37
Variety and department stores
22,350,953
8,484,506
38
Boston
950,250
411,394
43
Food stores
9,308,993
4,742,669
51
Chicago
8,573,793
3,845,362
45
Apparel stores
1,653,830
475,708
29
Dallas
5,633,198
2,125,573
38
Drug stores
338,196
180,149
53
Kansas City
5,337,218
2,683,483
50
Restaurants
502,677
227,099
45
Nashville
2,668,002
878,694
33
Other retail stores
234,521
105,137
45
New York City
1,049,698
636,784
61
Hotels and motels
9,864
6,000
61
Philadelphia
3,263,080
1,429,877
44
Hospitals
378,850
234,849
62
San Francisco
1,793,236
826,158
46
Nursing homes
97,436
67,424
69
Other service establishments
31,229
22,004
70
Agriculture
880,634
468,802
53
Note: Regions refer to WHPC jurisdictions. (See Technical notes for definition.)
Table 8.4. Multiunit enterprises with 10 establishments or more: Number of establishments, and number and percent
of full-time student man-hours authorized and utilized, ranked by number of man-hours used
[Data relate to certificates in effect on April 30, 1969, and reflect utilization during the period May 1, 1968 to April 30, 1969]
Number of
Hours
Percent of
Percent of
Cumulative
Enterprise name
establishmemts
authorized
Hours used
utilization
total hours
percent of
in firm
used
hours used
Total, all enterprises
4,615
35,787,183
15,014,347
42
100
100
S. S. Kresge Co
671
6,843,757
2,078,242
30
14
14
G. C. Murphy and Morgan Lindsey
363
2,804,148
1,377,761
49
9
23
W.T.Grant
187
1,502,514
631,644
42
4
27
McCrory-McLetlan-Green
313
1,679,831
609,835
36
4
31
TG & Y Stores
219
1,496,525
564,858
40
4
35
F. W. Woolworth
220
1,350,382
526,938
39
4
39
Handy-Andy
37
892,258
504,866
57
3
42
Rose's
144
1,720,002
368,502
21
2
45
J. S. Dillon & Sons
59
596,940
327,673
58
2
47
H & B
114
614,993
257,050
42
2
48
Lerner Shops
231
1,122,452
218,361
19
1
50
J. J. Newberry Co
69
406,545
212,580
52
1
51
Neisner Brothers Inc
92
689,185
190,807
28
1
53
Piggly Wiggly
51
345,011
189,422
55
1
54
Minyard Food
20
309,574
167,154
54
1
55
Younker Bros
21
251,056
182,531
65
1
56
Arden-Mayfair
26
407,462
161,253
40
1
57
Bishop-Stoddard Cafeteria
10
138,869
131,737
95
1
58
Buckwalls
46
210,575
112,123
53
1
59
S. H. Kress
111
595,002
103,956
17
1
59
Scott Stores
45
160,063
93,025
58
1
60
Sterling Stores
28
156,153
69,709
45
(1)
61
Big Bear
17
118,676
69,484
59
(1)
61
Edwards Inc
16
143,903
69,413
48
(1)
61
Boogaart Supermarket Inc
20
174,594
65,608
38
(1)
62
Raylass Department Stores, Inc
26
115,483
54,325
47
(1)
62
A. J. Bayless Markets
48
595,112
53,978
9
(1)
63
Minimax
16
91,239
53,247
58
(1)
63
Tom Thumb Stores
32
202,351
51,490
25
(1)
63
City Market
10
76,612
48,632
63
(1)
64
Herbergers
10
53,649
45,942
86
(1)
64
Basha's
14
74,234
45,648
61
(1)
64
Sure Way Food Stores
11
108,347
37,066
34
(1)
65
Eagle Food Centers, May Drugs
30
52,610
35,084
67
(1)
65
Meyer Inc
22
417,525
33,996
8
(1)
65
Red River Co., Piggly Wiggly
18
82,555
31,232
38
(1)
65
Spurgeon
35
53,382
30,562
57
(1)
65
Goldblatt Bros
20
500,287
29,250
6
(1)
66
Byrd Foods
10
58,869
28,755
49
(1)
66
Shaner's Food
17
84,099
28,565
34
(1)
66
Crest Stores
10
65,394
26,992
41
(1)
66
Autry-Greer & Sons
13
47,390
20,602
43
(1)
66
Eagle Stores
10
32,878
20,055
61
(1)
66
Furrs Super Market
42
360,421
15,216
4
(1)
67
Dixieland Food-Piggly Wiggly
18
50,283
13,299
26
(1)
67
Kuhn's Variety
14
42,631
12,162
29
(1)
67
Mason's Stores
15
87,880
95
(1)
(1)
67
Eat'n Park Restaurant
32
114,489
0
(1)
0
67
1 Less than 0.5 percent.
Note: The enterprise name shown is the one which appeared on the application for
a certificate.
114
Table 8.5. Numerical distribution of establishments not utilizing or not fully utilizing full-time student certificates by
degree of utilization and reasons for less than full utilization of certificates
[Data relate to certificates in effect on April 30, 1969, and reflect utilization during the period May 1, 1968 to April 30, 1969]
Reasons for not utilizing or not fully utilizing certificates
Number
of estab-
Number
lishments
Full-time
of estab-
not uti-
students
Full-time
Company
Tem-
Delay in
Degree of utilization
lishments
lizing or
Certifi-
unwilling
students
Prefer
policy
Legal
porary
Self-
school
Union
with cer-
not fully
Fully
cate
Record
to work
unsatis-
to hire
to pay
restric-
opera-
imposed
verifica-
restric-
Other
tificates
utilizing
staffed
restric-
keeping
at sub-
factory-
regular
mini-
tions
tional
restric-
tion of
tions
reasons
certifi-
tions
mini-
workers
workers
mum
problems
tions
student
cates
mum
wages
status
wages
Total
4,615
4,163
2,168
799
881
868
788
600
504
396
356
332
223
120
39
Less than 20 percent
1,484
1,484
564
321
425
339
199
243
282
111
189
49
136
80
14
1,085
1,085
641
198
212
211
236
151
98
114
82
78
50
36
12
20 percent to 49 percent
963
280
244
318
353
206
124
171
85
205
37
4
13
50 percent or more
2,046
1,594
Table 8.6. Percent distribution of certificates authorizing the employment of learners at wages below the statutory
minimum, by degree of utilization and industry
[Data relate to certificates in effect on April 30, 1969, and reflect utilization during the period May 1, 1968 t April 30, 1969]
Percent of certificates authorized
Certificates classified
according to degree
of utilization
U.S.
Single
Women's
Sportswear
Other
Knitted
Hosiery
Glove
Cigar
Industries In
Total
pants
apparel
apparel
wear
Caribbean
Absolute number
863
452
238
35
4
59
24
47
4
69
Total
100
100
100
100
100
100
100
100
100
100
0
6
5
6
20
7
4
2
9
1-9
11
12
13
26
2
4
4
9
10-19
16
17
16
29
14
21
13
26
17
19
15
9
22
13
4
50
19
20-29
8
17
17
50
12
30-39
14
13
16
9
25
40-49
12
14
11
3
10
17
11
7
50-59
8
8
8
3
14
4
11
12
6
5
4
25
10
8
19
60-69
70-79
4
3
3
3
7
8
11
3
2
4
4
3
80-89
3
2
3
25
90-99
2
2
3
5
2
100
1
(1)
2
25
2
1
1 Less than 0.5 percent.
Table 8.7. Numerical distribution of man-months for
which the employment of learners was authorized at rates
below the statutory minimum and the number and percent
of learner man-months utilized, by region
[Data relate to certificates In effect on April 30, 1969, and reflect utilization during
the period May 1, 1968 to April 30, 1969}
Number of
Number of
Percent of
Region
man-hours
man-hours
utilization
authorized
utilized
All regions except Caribbean
263,661
84,427
32
Atlanta
76,270
23,633
31
Birmingham
51,407
18,285
36
Boston
4,653
1,295
28
Chicago
11,975
4,743
40
Dallas
10,928
5,500
50
Kansas City
11,594
3,875
33
Nashville
54,919
17,053
31
New York City
606
106
17
Philadelphia
39,451
9,102
23
San Francisco
1,858
835
45
Caribbean
15,348
3,867
25
Note: Regions refer to WHPC jurisdictions (see Technical notes for definition).
HALD
115
Table 8.8. Numerical distribution of establishments not utilizing or not fully utilizing learner certificates by degree
of utilization and reasons for less than full utilization of certificates
[Data relate to certificates in effect on April 30, 1969, and reflect utilization during the period May 1, 1968 to April 30, 1969]
Number
Reasons for not utilizing or not fully utilizing learner certificates
of estab-
Number
lishments
Degree of
of estab-
not uti-
Learners
Tem-
Learners
Company
utilization
lishments
lizing or
Total
not
Experi-
porary
not
Work
No pro-
Self-
policy
Certifi-
Legal
Union
with cer-
not fully
(dupli-
Fully
willing
enced
opera-
satis-
undesir-
Season-
motional
imposed
to pay
cate
restric-
restric-
Other
tificates
utilizing
cated)
staffed
to work
workers
tional
factory
able
ality
oppor-
restric-
mini-
restric-
tions
tions
reasons
certifi-
at spe-
available
problems
workers
tunities
tions
mum
tions
cates
cial rates
wage
Total
856
847
1,594
453
292
332
155
111
110
34
25
23
14
13
6
4
22
Under 20
percent
290
290
536
135
115
118
49
35
44
4
7
5
7
4
1
1
11
20 percent
to 49
percent
383
383
732
219
120
146
76
50
50
20
13
13
6
5
4
2
8
50 percent
and over.
183
174
326
99
57
68
30
26
16
10
5
5
1
4
1
1
3
APPENDIX A.
Technical Notes
Scope and method
The study includes information for all establishments holding full-
time student or learner certificates on April 30, 1969, which had been in
effect at least three months, or which had been in effect for less than
three months if the firm had had a certificate at any time subsequent to
April 30, 1968.
Data for each certificated establishment were collected by the regional
staff of the Wage and Hour and Public Contracts Divisions. Approxi-
mately 3,600 of the more than 4,600 establishments holding full-time stu-
dent certificates are parts of large multi unit enterprises. For many of
these enterprises, survey data were obtained from records maintained in
the central or regional offices of the enterprises. Where central office rec-
ords were not available or were incomplete, the data were obtained from
the individual establishments.
Full-time student man-hours and learner man-months authorized and
utilized are based on survey findings. For purposes of this survey, full
utilization of full-time student or learner certificates is defined as
utilization of 95 percent or more of the man-hours or man-months author-
ized by the certificates. Degree of utilization is the ratio of man-hours or
man-months utilized to man-hours or man-months authorized.
A number of establishments furnished more than one reason for not
utilizing or not fully utilizing the man-hours or man-months allowed by
the certificates. As all of the reasons given were tabulated, the number
of reasons exceeds the total count of establishments with certificates.
FORD
HALD
116
FULL-TIME STUDENTS. A total of 1,246 establishments which held full-time
student certificates at some time between May 1, 1968, and April 30, 1969,
were not within the scope of this survey for the following reasons:
693 certificates expired during the survey period and renewal of the certificates
was not requested:
441 original certificates which became effective after January 31, 1969, were ex-
cluded because of insufficient experience under the certificate;
73 establishments holding certificates were found to be exempt from the FLSA
under section 13 (a) (2) ;
36 establishments holding certificates went out of business during the survey
period, and;
3 certificates expired and renewal was denied.
LEARNERS. A total of 245 establishments which held 253 learner certifi-
cates at some time between May 1, 1968, and April 30, 1969, were excluded
from the survey for the following reasons:
169 certificates expired during the survey period and renewal of the certificates
was not requested;
17 original certificates which became effective after January 31, 1969, were ex-
cluded because of insufficient experience under the certificate;
13 certificates were held by plants which went out of business during the survey
period;
50 certificates expired and renewal was denied because of lack of utilization; and
4 certificates expired and renewal was denied for other reasons.
Tabulations
Data have been tabulated by industry, type of certificate, degree of
utilization and by Wage and Hour and Public Contracts region (RO)
and district office (DO) area. The jurisdictional areas are defined as
follows:
Atlanta RO: Florida, Georgia, North Carolina, and South Carolina
Birmingham RO: Alabama, Arkansas, Louisiana, and Mississippi
Boston RO: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island,
and Vermont
Chicago RO:
Cleveland DO-Ohio
Detroit DO-Michigan
Chicago-Other-Illinois Indiana, Minnesota, and Wisconsin
Dallas RO:
Dallas DO-North Texas
Houston DO-South Texas
Oklahoma City DO-New Mexico and Oklahoma
Kansas City RO: Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North
Dakota, South Dakota, Utah, and Wyoming
Nashville RO: Kentucky, Tennessee, Virginia, and West Virginia
FORD
New York City RO: New Jersey and New York
GRALD
117
Philadelphia RO:
Philadelphia DO-East Pennsylvania, Delaware, District of Columbia, and
Maryland
Pittsburgh DO-Central and West Pennsylvania
San Francisco RO:
Los Angeles DO-Arizona and South California
San Francisco DO-Alaska, North California, Hawaii, Idaho, Nevada, Oregon,
and Washington
Caribbean Office: Puerto Rico, Virgin Islands and Panama Canal Zone
References
The technical terms used in this report are defined in the appropriate
parts of Title 29 of The Code of Federal Regulations: (1) Part 519-
Employment of Full-Time Students at Special Minimum Wages; (2)
Part 520-Employment of Student Learners; (3) Part 522-Employment
of Learners; and (4) Part 527-Employment of Student Workers.
APPENDIX B.
The following supplementary tables from the study of full-time students
and learner certification programs are available from the Bureau of
Labor Statistics on request.
List of tables:
Full-Time Students
Numerical distribution of man-hours for which the employment
of full-time students was authorized at wages below the
statutory minimum, by extent of utilization of certificates and
by:
1. Area
2. Industry
3. Type of certificate
Percent distribution of man-hours for which the employment of
full-time students was authorized at wages below the statutory
minimum, by extent of utilization of certificates and by: :
4. Area
5. Industry
6. Type of certificate
Numerical distribution of establishments with certificates au-
thorizing the employment of full-time students at wages below
the statutory minimum, by extent of utilization and by:
7. Area
8. Industry
9. Type of certificate
&
FORD
118
APPENDIX B.-continued
List of tables-continued
Percent distribution of establishments with certificates author-
izing the employment of full-time students at wages below the
statutory minimum, by extent of utilization and by:
10. Area
11. Industry
12. Type of certificate
Numerical distribution of man-hours for which the employment
of full-time students was authorized at wages below the sta-
tutory minimum, by degree of utilization and by:
13. Industry
Percent distribution of man-hours for which the employment
of full-time students was authorized at wages below the
statutory minimum, by degree of utilization and by:
14. Industry
Numerical distribution of establishments with certificates au-
thorizing the employment of full-time students at wages below
the statutory minimum, by degree of utilization and by:
15. Industry
Percent distribution of establishments with certificates author-
izing the employment of full-time students at wages below the
statutory minimum, by degree of utilization and by :
16. Industry
Numerical distribution of establishments utilizing certificates to
employ full-time students, by degree of utilization and by :
17. Industry and age
Percent distribution of establishments utilizing certificates to
employ full-time students, by degree of utilization and by:
18. Industry and age
Numerical distribution of establishments not utilizing or not
fully utilizing full-time student certificates by reasons for less
than full utilization of certificates and by :
19. Area
20. Industry
21. Degree of utilization
Percent distribution of establishments not utilizing or not fully
utilizing full-time student certificates, by reasons for less than
full utilization of certificates and by :
22. Area
23. Industry
24. Degree of utilization
Learners
&
FORD
Numerical distribution of man-months for which the employ-
RALD
119
APPENDIX B. -continued
List of tables-continued
ment of learners was authorized at wages below the statutory
minimum, by extent of utilization of certificates and by:
25. Area
26. Industry
27. Type of certificate
Percent distribution of man-months for which the employment
of learners was authorized at wages below the statutory
minimum, by extent of utilization of certificates and by:
28. Area
29. Industry
30. Type of certificate
Numerical distribution of certificates authorizing the employ-
ment of learners at wages below the statutory minimum, by
extent of utilization of certificates and by:
31. Area
32. Industry
33. Type of certificate
Percent distribution of certificates authorizing the employment
of learners at wages below the statutory minimum, by extent
of utilization of certificates and by:
34. Area
35. Industry
36. Type of certificate
Numerical distribution of man-months for which the employ-
ment of learners was authorized at wages below the statutory
minimum, by degree of utilization and by:
37. Industry
Percent distribution of man-months for which the employment
of learners was authorized at wages below the statutory min-
imum, by degree of utilization and by :
38. Industry
Numerical distribution of certificates authorizing the employ-
ment of learners at wages below the statutory minimum, by
degree of utilization and by:
39. Industry
Percent distribution of certificates authorizing the employment
of learners at wages below the statutory minimum, by degree
of utilization and by:
40. Industry
Numerical distribution of man-months utilized to employ learn-
ers at wages below the statutory minimum, classified by per-
cent of man-months utilized in the employment of teenagers
and by:
41. Industry
:
FORD
120
APPENDIX B. -continued
List of tables-continued
Percent distribution of man-months utilized to employ learners
at wages below the statutory minimum, classified by percent
of man-months utilized in the employment of teenagers and
by:
42. Industry
Numerical distribution of establishments not utilizing or not
fully utilizing learner certificates, by reasons for less than full
utilization of certificates and by :
43. Area
44. Industry
45. Degree of utilization
Percent distribution of establishments not utilizing or not fully
utilizing learner certificates by reasons for less than full
utilization of certificates and by :
46. Area
47. Industry
48. Degree of utilization
Numerical distribution of establishments which utilized learner
certificates but did not utilize teenage learners, by reasons for
not employing teenage learners and by :
49. Area
50. Industry
51. Degree of utilization
Percent distribution of establishments which utilized learner
certificates but did not utilize teenage learners, by reasons for
not employing teenage learners and by:
52. Area
53. Industry
54. Degree of utilization
FORD
RALD
CHAPTER IX
State Experience With Minimum Wage
Differential Rates for Youth and Their
Effect on Youth Employment
This study of State experience with minimum
Very little "hard data" are available. This
wage differential rates for youth was under-
lack concerns all aspects of the problem, includ-
taken as part of the response to the Secretary
ing wages actually paid to youth; the number
of Labor's request for an evaluation of the ef-
and percent covered by the State minimum
fect of minimum wage legislation on youth em-
wage; where youth are employed; and area dif-
ployment in 1969. In their minimum wage laws,
ferences in employment and wages within a
a number of States have provided for lower
State. As a consequence, most of the following
rates for minors than are required for adults,
discussion is based upon individual experience,
and State experience with the effect of these
impressions, and opinions-gained, however,
differentials might offer some clues to the desir-
from persons closely involved with many
ability of providing differentials based on age in
aspects of youth employment.
Federal minimum wage legislation.¹
Information on actual experience with mini-
As defined for the overall study, "youth"
mum wage differential rates was obtained
consists of persons 16 to 19 years old. However,
mostly by the Regional Offices of the Bureau of
those State minimum wage laws which have an
Labor Statistics in interviews with knowledgea-
age differential ordinarily use 18 years of age
as the cutoff point after which youth differen-
ble persons in selected States in June 1969. Per-
tials do not apply. Therefore, investigation for
sons interviewed included State officials con-
this report tended to concentrate on the age
cerned with the administration of minimum
group under 18 years of age, usually the 16 and
wage and child labor legislation, representa-
17 year olds, extended in some instances to
tives of State Employment Services, staff mem-
cover the employment situation of 14 and 15
bers of Federal employment programs, repre-
year olds. Thus, emphasis was placed on en-
sentatives of vocational training and coopera-
trance into the labor market rather than on the
tive-work programs of the schools, academi-
employment experience of the older teenager
cians, officials of labor unions and employer as-
over a period of time.
sociations, and personnel officers of those indus-
This chapter was prepared by Juliet F. Kidney, Of-
tries in which youth are chiefly employed (de-
fice of the Chief Economist, Bureau of Labor Statis-
partment stores, drug and grocery stores, banks
tics. William Barron of the same Office made substan-
and insurance companies, and other services).
tial contributions to the development of materials for
Time and resources did not allow careful study
this section.
Footnotes appear on p. 131.
of each State, but each type of differential (age,
FORD
121
FRALD
122
student, learner) was given some attention; one
wage establishes a psychological "floor" for
State, Illinois where the minimum wage law is
wage aspirations of youth.
inoperative, also was included. Although it
In most States the high unemployment rate
might have been desirable to look at each State
for those under 18 is attributed to safety and
experience in relation to its economic and social
hour restrictions imposed by child labor laws,
climate, such information was not available.
the youth attitudes toward work described
Within this framework, the study shows sub-
above, and the lack of vocational training and
stantial agreement across the country on the
preparation for entrance into the world of
effect of State minimum wage laws and various
work. Other factors, such as "red tape" in get-
types of differential rates on youth employment.
ting work certificates and employer assump-
Information on other factors which affect em-
tions as to lack of responsibility and dependa-
ployment of teenagers, used interchangeably in
bility of young people, were important.
this report with youth, was developed as a by-
There was also some feeling that employers
product and is included.
often assume that it is illegal to hire youth
under 18. In some cases, this attitude is consi-
Summary
dered to be a smokescreen to hide prejudice
against hiring young people, particularly from
All but 13 States established minimum rates
the ghetto areas.
for adults. This total does not include Texas
which has enacted minimum wage legislation
State minimum wage legislation
effective February 1970. Most of these States
also establish a differential rate for youth on
As of August 1969, 38 jurisdictions (36
the basis of age, education, or work experience,
States, the District of Columbia, and Puerto
or exempt them entirely. The amount of the dif-
Rico) have laws which establish minimum wage
ferential may be as little as 5 cents or as high as
rates. In addition, in May 1969, Texas passed a
$1.05. Somewhat more than half of the provi-
minimum wage law which became effective Feb-
sions establishing a differential for youth pro-
ruary 1, 1970. Three States, Illinois, Kansas,
vide for a rate which is from 75 to 85 percent of
and Louisiana, have laws which are inoperative,
the corresponding adult minimum.
and 10 States have no legislation on this sub-
On the basis of State experience, lower mini-
ject. Of the 38 jurisdictions which have active
mum wage rates for youth than for adults do
minimum wage legislation, 10 use an industry
not resolve the paradox of high youth unem-
wage board procedure exclusively to set rates
ployment in an inflationary economy character-
for specific industries, 18 have statutory mini-
ized by high wages and tight labor markets. A
mum rates, and the remaining 10 jurisdictions
have both types. (See appendix A.) The last
major reason has been that, except for a few
group consists of States where the industry
rural, agricultural, and resort areas, the differ-
wage board procedure was used for many years
ential wage rates for minors, students, and
and was retained when the jurisdictions
learners are sufficiently below the prevailing
adopted statutory minimums. Thus, under some
wage level as to present little inducement to
of the laws, wage boards have the power to es-
youth growing up in an affluent society to work
tablish a minimum wage for categories of work-
for minimum wages. For a number of young
ers not covered by the statutory rates.
people, particularly those in ghetto areas, who
In February 1969, an estimated 3.5 million
are looking primarily for full-time jobs, wage
workers2 were covered by State minimum wage
and status expectations are not satisfied by an
laws only, compared with the 44.6 million em-
unskilled job, even that which pays the Federal
ployees covered by the Fair Labor Standards
minimum rate of $1.60 an hour. This attitude
Act (FLSA). An estimated 8.2 million non-
may be less prevalent among students in search
supervisory employees in the private sector
of part-time and temporary jobs, but the opin-
were not covered by either the FLSA or State
ion was expressed that the Federal minimum
laws.'
FORD
123
Most of these exempt employees are engaged
California and New York limit to 10 percent
in executive, administrative or professional OC-
of the total number of employees the number of
cupations, domestic service, or agriculture, or
youth who may be employed at the differential
are government employees, outside salesmen, or
rate in any one establishment. In Connecticut, a
taxicab operators. Some States exempt the
differential rate for minors is established for
small employer from minimum wage coverage;
the first 200 hours of employment "to prevent
the most common exemption are that of employ-
curtailment of employment opportunities
"
ers who hire fewer than four persons. In seven
and "to provide a reasonable period during
States the legislation covers only women and
which training for adjustment to employment
minors (usually under 18).
conditions may be accomplished." The District
In States which use the wage order procedure
of Columbia established a differential rate in
exclusively, coverage is most frequently ex-
the retail trade industry effective July 6, 1969,
tended to workers in beauty service occupa-
and also has a wage differential for part-time
tions, laundry, dry cleaning and dyeing, manu-
workers less than 16 years of age in all wage
facturing, public housekeeping, (ordinarily in-
orders except retail trade. The youth differen-
cluding restaurants and hotels) and retail
tial provision in Minnesota relates solely to the
trade. Some States also cover agriculture, proc-
amusement industry. Nevada establishes a 15-
essing of agriculture products, and amusement
cent differential for minors. New Hampshire
and recreation activities.
stipulates that minors can be paid 75 percent of
the applicable minimum. In New Jersey, Ore-
Youth differentials and exemptions
gon, and Washington, youth under 18 are ex-
empt from the prevailing statutory rate for
Three major criteria-age, education, and ex-
adults but in certain industries are covered by
perience-are used to establish differential min-
wage orders which provide differential pay
imum wages affecting youth in State minimum
rates. Wisconsin establishes a 20-cent differen-
wage laws. The most obvious method of differ-
tial for minors in covered industries.
entiating is by a specific rate (s), lower than the
In addition, Texas has adopted minimum
adult rate, for persons under a certain age. Dif-
wage legislation effective February 1, 1970,
ferentials, including exemption, also may be
which will exempt dropouts under 20 from ei-
specified for "students" and for "learners" or
ther school or vocational training.4
apprentices, with or without age specifications.
In most States, "learners," in actual usage,
Differentials based on educational status
seems to apply primarily to those under 18.
Other types of differentials occur in the form of
The minimum wage laws of almost half of
exemptions. A State specifically may exempt all
the jurisdictions (22) make specific provision
persons under a specified age, or certain occupa-
for students.5 Some of these provisions are lim-
tions, such as domestic service, agricultural
ited to young persons, but others apply to stu-
jobs, babysitting, golf caddying, etc., in which
dents of any age.
large numbers of youth ordinarily are em-
Seven States exempt students wherever they
ployed.
are working:
Arizona-students under 21.
Differentials based on age
Maryland-regularly enrolled students working not
The laws of 11 jurisdictions specifically pro-
more than 20 hours a week.
Nebraska-those regularly enrolled in primary or
vide for differential wage rates for youth less
secondary school, who work after school or dur-
than 18 years of age across the board or in at
ing vacation.
least one industry: (1) California, (2) Connec-
New Mexico-those in primary or secondary
ticut, (3) District of Columbia, (4) Minnesota,
schools; colleges and universities.
(5) Nevada, (6) New Hampshire, (7) New
Texas-students less than 20 years old.'
Vermont-all students.
Jersey, (8) New York, (9) Oregon, (10) Wash-
West Virginia-students of any recognized school
ington, and, (11) Wisconsin.
or college.
FORD
124
In Ohio students working part time are ex-
Alaska-persons under 18 who are working part
empt from the minimum rates set by the State's
time (less than 30 hours).
Indiana, Michigan, Oklahoma, Wyoming-persons
Retail Trade Wage Order.
under 18.
In Rhode Island, students are exempt, except
South Dakota-persons under 17.
in the instance of four wage orders covering
Many State laws exempt industries and occu-
specific services and retail trade, which provide
pations in which young people are likely to be
for differential rates.
employed, such as newsboys, shoeshine boys,
Fourteen jurisdictions provide lower rates
for students either in the statute or upon appli-
caddies, carhops, ushers, and babysitters. Em-
cation by the employer. Most cases have an age
ployees of summer camps and resort institu-
cutoff. They are: (1) Arkansas, (2) California,
tions frequently are exempt.
Not included among the 22 States mentioned
(3) Colorado, (4) Delaware, (5) District of
above are the States such as Indiana and Wash-
Columbia, (6) Hawaii, (7) Maine, (8) New
Jersey, (9) New York, (10) Oklahoma, (11)
ington, which exempt students who work at
Oregon, (12) Pennsylvania, (13) Rhode Island,
school, and those States which have special
provisions which affect students, such as Wyo-
and (14) Utah.
ming's exemption of part-time workers from
Differentials based on experience
minimum wage coverage.
All States except Indiana, Texas, West Vir-
Level of minimums and differentials
ginia, and Wyoming permit the payment of
lower rates to learners or apprentices. Although
The basic minimum wage rates currently in
these provisions relate to inexperienced persons
effect for adults range from 52 cents an hour in
regardless of age, most State officials who ad-
the Laundry and Dry Cleaning Industry Wage
minister State laws see learner provisions as
Order promulgated by Arizona in 1948 to $2.10
having special importance for youth, many
per hour in Alaska. More than half of the
States which establish minimum wage rates
of whom lack experience and job training.
More than half of the State laws which have
have adult rates which are 30 cents or more
provisions for learners and apprentices stipu-
below the Federal minimum of $1.60.
late a differential rate in the law or wage order.
Among the 11 States which specify differen-
(See appendix A.) The remaining States stipu-
tial rates for minors under 18, the amount of
late that special rates can be obtained by apply-
the differential is usually between 20 and 40
ing to the appropriate State agency. In many
cents an hour. The minimum rate for youth
cases, lower rates for learners result from de-
ranges from 48 percent (Oregon) 94 percent
liberations between State, employer, and em-
(Minnesota) of the adult rate. (See appendix
ployee representatives.
B.)
Most States specify, or reserve the right to
For learners, most of the specified differen-
establish, the proportion of learners to the total
tials are between 15 and 40 cents. Rates for
number of employees, who can be hired by an
learners range from 52 percent (Oregon) to 95
establishment at the differential rate and the
percent (Minnesota) of basic adult minimum
rates.
length of time for which the differential is in
Only one student differential is as little as 15
effect. This varies from 1 month to almost a
cents; more than half the student differentials
year; the normal learning period is from 1 to 3
range between 30 and 60 cents less than the
months.
adult minimum. Student rates as a percent of
basic adult rates range from 34 percent (Rhode
Exemptions
Island) to 91 percent (District of Columbia).
The following jurisdictions exclude minors
In summary, more than half of the provi-
under a certain age from minimum wage cover-
sions establishing a differential for youth pro-
vide for a rate which is from 75 to 85 percent of
age:
FORD
125
the corresponding adult minimum. However, as
youth (and adults as well). A representative of
a percentage of basic adult minimum wage
an employer association believed that the "con-
rates, wage rates applicable to youth range
stant raising" of the minimum wage forecloses
from 34 percent stipulated in the Rhode Island
the labor market to a larger and larger number
Public Housekeeping Wage Order to 95 percent
of marginal workers. He maintained that even
in the Minnesota Personal Service and Public
though inflation has decreased the impact of the
Housekeeping Wage Orders.
minimum rates set by statute in 1968, these still
deter employment of youth, and that the 30-cent
State experience with factors affecting youth
differential for youth in the wage orders is eco-
employment
nomically important to the employer, especially
the marginal firm. A representative of the
Although attention was centered originally
Coastal Area Farm Placement Office in Califor-
on the 11 jurisdictions which provide for pay-
nia stated that the minimum, which applies in
ment of lower minimum wages to youth, defined
California only to women ($1.65) and minors
as persons under 18 years of age, reports on the
($1.35), resulted in such large increases in
experience of States with other forms of differ-
wage payments that apricots are now sent to
ential treatment indicate that in 1969 the type
commercial drying yards for the slicing, pit ex-
of differential makes little impact on youth em-
traction, and drying formerly done on the
ployment. Consequently, the description of
farms; thus several hundred women and teen-
State experience is not confined to types of dif-
agers are cut out of summer employment. In
ferential rates in the State laws.
this case, the youth differential appears to have
been of no value for retaining younger workers.
Impact of minimum wage differentials
A representative of the Retail Clerks Interna-
tional Association said about the February 1,
In nearly all of the States covered by the
1968 wage orders, "every nickel or dime for box
study, differential minimum wage rates applica-
boys decreases the number of them and the
ble to youth, including exemptions, appear to
closer you get to the journeymen rate the more
have little impact on the employment of youth
likely the employer is to hire an adult."
in 1969. The report on Massachusetts states,
In Maine, where students working part time
with regard to learners that "The minimum
must be paid 75 percent ($1.12) of the adult
wage was not considered a relevant factor by
minimum rate ($1.50), State officials "believe
anyone interviewed
Employers in all areas
there would be considerable teenage unemploy-
report that they would not expect any teenage
ment without this reduced rate." However,
applicants if they offered starting wages less
since 1967 when students were brought under
than the minimum wage." Similar consensus OC-
the minimum wage law and employers said they
curred in most of the other 25 jurisdictions in
would not be able to hire them, student employ-
which investigation was made. In Colorado,
ment increased.
Michigan, North Carolina, and Oregon, how-
In Nevada, where there is a $.15 youth dif-
ever, there was some indication that without
ferential under the adult rate of $1.30 and a
exemption or differentials for youth under 18,
total of 37.5 cents differential for girls under 18
youth unemployment might be higher in small
towns, rural, and tourist areas.
for a 3-month probationary period, the Labor
In three States it was stated or implied, that
Commissioner believes that more youngsters,
the State minimum wage law has some adverse
particularly in the smaller communities, are
effects on youth employment-or would have
hired because of these differentials. The report
without differentials-but even in these States
also stated that "some employers claim they are
other factors were given equal or greater
unwilling to hire youth because of the high min-
weight. California seemed to produce the
imum rates, even with the youth differential,
strongest and most numerous opinions-the ef-
but there appears to be no concrete evidence of
fect of minimum wage on the employment of
this."
FORD
G7VD
126
Several States indicated that the Federal
ple doing the same job should be paid the same
minimum wage of $1.60 inhibits youth employ-
rate regardless of age." Insurance companies
ment, whereas the lower State rate, even with-
hired students for summer employment at
out significant youth differentials, as in Idaho
"starting rates well in excess of Federal and
and Nebraska, does not have this effect.
State minimums." Small department stores of-
In those States which claim that differential
fering jobs at the learner rate of $.90 an hour
rates for youth have little or no effect on youth
were unable to find workers. In summary,
employment, what evidence supports this
"youth differential rates, which are allowable in
assertion? How can the high youth unemploy-
mercantile, beauty culture, and laundry, clean-
ment rates, especially in the ghetto areas of the
ing and dyeing occupations, ($.85 to $1.35 per
inner cities, be explained?
hour) were described as being of little signifi-
The argument has several sides. First, in
cance in terms of impact on wages received by
most places, particularly in urban areas, a tight
youth."
labor market and an inflationary economy have
In Colorado, which has rates ranging from
pushed the entry wage rate up to or beyond the
$.65 to $1 for students and learners (the adult
Federal minimum of $1.60 per hour and thus
rate is $1.25), inexperienced young workers in
well above most State minimums for adults, to
Denver were receiving $1.35 in hospitals, $1.55
say nothing of lower youth differential rates.
in wholesale trade, and $1.15 to $1.30 in res-
As a result, there are few or no "takers" for
taurants and "drive-ine." For part-time work
those jobs which offer entry rates below the
after school, boys were receiving $1.25 to $2 an
"going rate;" the lower wages have no mean-
hour. Rates were lower in the mountain and
ing. Secondly a number of other factors such as
farming areas but still above the allowable min-
employer and youth attitudes, legislation, etc.,
imums.
directly inhibit employment of youth, especially
In Ohio, a tabulation of wages paid by 54
those under 18 years of age. Another reason for
food service and lodging establishments not
lack of effectiveness of the differentials, is, of
covered by the FLSA showed that "few estab-
course, the exemption in a number of States of
lishment minimums [for different occupations]
certain occupations and of smaller establish-
were concentrated near the State minimums;
ments from coverage by the minimum wage
thirty-six, in fact, had minimum rates of $1 to
law; thus many teenagers automatically are
$1.24; 14 of $1.25 or more." State minimums
eliminated from coverage. However, freedom
range from $.55 to $.75 per hour ($.80 per hour
from the requirement of paying a minimum
for 30 hours or less a week for women and mi-
wage does not automatically cause the employer
nors, with a $.15 differential to each rate for
to hire a teenager-"other factors" conspire to
learners.
prevent employment.
A corollary indication of the effectiveness of
Determination of actual wages paid to youth
youth differential rates is found in the extent to
and the extent to which they surpass the mini-
which employers apply for permission to use
mums is almost impossible without surveys giv-
these rates. A survey was made by the New
ing a frequency distribution of wages. Lacking
York State Department of Labor in May 1968
these, reliance was placed on the opinions of
those concerned with the placement of teenag-
of the utilization of youth rate certificates, one
ers in jobs. Most major industrial States in the
year after the youth rate ($1.35; adult rate of
East and Middle West reported situations simi-
$1.60) was enacted. Of the establishments with
lar to the following: In New Jersey, entry rates
certificates (77 percent were retail stores and
for both full- and part-time, summer, and per-
11 percent were restaurants), only 55 percent
manent jobs for teenagers were at or above
used them. Of these, 20 percent paid the youth
$1.60, the Federal minimum rate. One large de-
rate to only "some" of the eligible youths.
partment store in Newark paid $1.56 to teenag-
"Some increased the youth rate to the regular
ers, 16 to 18 years old, for clerical, stock, and
minimum shortly after the hiring date." Thir-
material movement jobs, and stated "that peo-
ty-seven percent of all the establishments re-
FORD
127
ceiving certificates did not use them; they paid
ness, reduce service to D.C. residents through re-
no one less than $1.50 because "they could not
duced shopping hours, reduce employment oppor-
find youths willing to work for $1.25 an hour."
tunities for youth, hard-core unemployed, and the
handicapped, discourage new businesses from com-
In New England, where, in every State,
ing into the city, and drive small retailers out of
learners' certificates may be granted to employ-
business.
ers on application, the BLS Regional Office re-
Nevertheless, when asked if the 20-cent differ-
ported,
ential might not encourage employment of teen-
there appears to be little use made of the reduced
agers, the same persons indicated that they
rate [since] there would be great difficulty getting
would not hire them because of lack of skill,
people to work at wages lower than the minimum
work attitudes, and so fourth.
State rate
With the general exception of
On the other hand, the personnel director of a
Maine, the entry wage of all inexperienced workers
into most occupations is usually $1.60 to $1.80 per
leading drug chain indicated that:
hour
Too many jobs are available at higher
In view of the high cost of living and the attitudes
wages, and even the opportunity for some training
of young people toward wages and work, the in-
does not seem to provide much incentive
crease in the minimum wage would not affect their
employment. Our experience indicates that a lower
In New Hampshire, where an employer can pay
rate would only increase job dissatisfaction and
job turnover, and this chain will therefore not take
anyone under 18 years of age 75 percent of the
advantage of the differential.
minimum wage, State officials believe that most
Only token use has been made of a provision
youth seekings work "find employment at wages
in all District of Columbia wage orders (other
around the adult minimum ($1.60) Except for
than retail trade) which allows payment of
Maine, this same situation appeared to prevail
$1.45 per hour to workers under 16 who work
throughout New England for students doing
less than 36 hours a week.
part-time work.
Most of the learner provisions establish time
In Hawaii, the use of differential rates for
limits to the training period at the reduced
students has been limited-only 27 certificates
wage in a particular establishment or in an OC-
issued to retail trade employers, although it was
cupation. When this period is relatively short,
suggested that the increase in the adult mini-
employers tend to ignore the differential. For
mum from $1.25 to $1.60 on July 1, 1969, might
example, in Connecticut where the time limit is
cause increased recourse to this rate. In Idaho,
200 hours (5 weeks) and the differential is $.35
only 85 learner permits were in effect at the
or a savings of $84 for the period, the personnel
time of the survey. Similar situations for utili-
director of a major department store said the
zation of learner and student rates prevailed in
savings were outweighted by the expense of re-
Delaware, the District of Columbia, Washing-
programming the automated recordkeeping and
ton, Oregon, and others. In the District, the re-
payroll system at the end of the training period
(assuming youth would accept the lower wage).
cently promulgated wage order for retail trade
In Washington, many employers do not
set an adult minimum hourly rate at $1.80 and
"bother" filling out the form for the special per-
a youth (under 18) rate at $1.60; both rates are
mit to hire at a lower rate for 480 hours because
to increase on July 1, 1970, to $2 and $1.80.
the savings of $120 over the full period and the
Although there has been considerable outery by
lesser amounts for shorter periods are not suf-
District merchants, particularly department
ficiently great to warrant the bother.
stores, to the extent of taking the increase into
The Commissioner of Labor in Utah did not
court, it is too soon to evaluate experience
believe the learner/student differentials have
under this order. Some department store execu-
increased youth employment but instead dis-
tives have stated that:
courage young workers who complain of dis-
crimination by these rates. Staff of the State
The increase will add to inflationary pressures
already existent in the community, strike a harsh
Employment Service concurred but believed
blow to the competitive stance of D.C. retailers
"wages received by youngsters would be lower
who are already struggling with a decline in busi-
without the State minimum."
FORD
128
Other factors affecting the employment of youth
Limitations on hours worked appear to affect
employment of minors under 18 in restaurants
Without exception, factors other than mini-
and "drive-ins," theaters and other places of
mum wage legislation were cited as of signifi-
amusement and recreation, and retail trade es-
cantly greater importance in the inhibition of
tablishments, particularly in suburban shop-
youth employment. The principal ones are:
ping centers. The employment of minors under
Child labor laws, attitudes and conduct of
18 on swing shifts in manufacturing establish-
youth, their lack of training and experience,
ments also is inhibited. Employers who said
employer attitudes, and economic conditions.
Other causes include "red tape" involved in get-
they would otherwise hire minors find that the
ting differential rates or work certificates,
limit on the number of hours they can work
union restrictions, and problems of transporta-
creates problems because of the necessity to
tion.
make exceptions. In the District of Columbia
where girls under 18 years and boys under 16
CHILD LABOR LAW.⁷ All the major industrial
cannot work after 7 p.m., retail trade employers
States and some of the more rural, agricultural
stated that this was an important factor re-
States included in the study cited various as-
stricting the hiring of youth, particularly part
pects of child labor laws as major restrictions
time. Twenty-four States have no night work
on the employment of persons under 18 years of
prohibition for minors 16 and 17 years old, and
age and particularly of those under 16 years.
in several of these States hours limitations may
Every State has a child labor law. These laws
be used as an excuse when the employer does
generally establish a minimum age at which a
not want to cite other reasons.
child may legally take a job, either for full-time
work if he is legally out of school or for work
Fifty-one jurisdictions prohibit the employ-
outside school hours and during the vacation
ment of minors under 18, or under 16, in cer-
periods. Almost half the States set a minimum
tain hazardous occupations and over two-thirds
age of 16 for work in manufacturing establish-
of these jurisdictions have given authority to
ments. Most of the States set a minimum age of
the administrative agencies to declare other oc-
14 for nonmanufacturing and nonhazardous
cupations hazardous. Many laws prohibit work
employment outside school hours. All but 5
in or about mines or quarries, on power-driven
States require an employer to get an employ-
machinery, and the cleaning of machinery in
ment certificate before employing a worker
motion. The Fair Labor Standards Act also pro-
under 16. About half the States require such
hibits employment of children under 18 in cer-
certificates for minors of 16 and 17 as well.
tain hazardous occupations. These are incorpo-
Additional legislative safeguards for children
rated in many State laws.
are found in the limitation of daily and weekly
Safety regulations on employment in hazard-
hours for young workers and the restriction of
ous occupations although cited most frequently
employment during certain night hours. Most
as preventing employment in manufacturing
State laws allow a maximum 8-hour day and a
and construction, also affect service stations,
48-hour week or less for minors under 16; in
department stores, and agriculture. In some
fewer States, for those under 18. When children
States, the regulation that a youth under 16 or
under 16 attend school and work outside school
under 18 may not operate a gas pump prevents,
hours, almost half the States limit the number
in effect, the employment of young men in any
of hours such children may work or specify a
capacity in service stations. The personnel man-
maximum for the total number of daily hours
ager of a large department store in New Jersey
spent in school and work. Thirty States and the
stated that his company prefers not to hire mi-
District of Columbia prohibit night work after
nors under 18, partly because management is
6 p.m. or 7 p.m. for children of both sexes under
unable to keep a tight control over them to en-
16 in all or most occupations.
sure that child labor laws are being obeyed. One
FORD
129
regulation keeps minors from riding in freight
ideas as to what their labor is worth to an em-
elevators; the regulation is widely posted, but
ployer." In Minnesota, "a reduced wage
enforcement is difficult and the store has been
wouldn't excite kids looking for full-time work.
fined on numerous occasions. In Illinois, it is
Many expect $2 an hour, and a few feel $2.50 is
claimed that many manufacturers will not hire
the magic number." The New Jersey report
those under 18 even though they could legally
states that minimum wage jobs do not appear to
do many jobs. Thus, they eliminate possible
provide sufficient motivation for many young-
legal liabilities arising from unwitting exposure
sters to leave the ranks of the unemployed.
of minors to hazardous machinery. For exam-
In States scattered across the country, except
ple, a transfer by a foreman, of a 17 year old
for several mid-Western agricultural States,
from a bakery shipping department (nonhazar-
various officials are concerned about the lack of
dous) to a clean-up job in the mixing depart-
job orientation or motivation among unem-
ment, would violate the FLSA. Related to safety
ployed youth, particularly school dropouts who
is the question of insurance. In some States,
ask first about the wage and then about the type
liability insurance rates are double for youth
of work. This situation seems to be most acute
under 18 years of age and employers are unwill-
with the ghetto youth, especially the Negro
ing to pay the higher premiums. However, a
teenagers who have the highest rate of unem-
number of times the insurance risk was not
ployment. In Boston, as elsewhere, "the Negro
greater for the younger group and employers
youngster is seeking new identity and self-
have used safety restrictions and hours limita-
pride. If a job does not pay $2.50 to $3 an hour,
tions as an excuse, for not hiring teenagers.
at least it should call for wearing a shirt and
Although most States appear cognizant of the
tie."
necessity for some regulation of working condi-
In major cities this study, the majority of
tions, they also indicate a real need to over-haul
youth who apply to the Youth Employment Op-
these long-standing provisions in the light of
portunity Centers are dropouts or youth over 18
technological changes, advances in safety mea-
looking for full-time work. A high proportion
sures, and developments in the operation of re-
are Negro. A good share of the jobs available
tail, restaurant, and service establishments.⁸
through the Centers are in the service occupa-
tions (messengers, porters, etc.) or domestic
YOUTH ATTITUDES. In almost every State in
work, which require little or no experience or
which interviews were held, the attitude of the
education. However, these jobs are looked on as
young worker was cited as a significant factor
menial and low-paying. In urban New Jersey
contributing to his unemployment. His wage ex-
and New York City, domestic work pays $2 an
pectations are unduly high and his concern
hour or more plus carfare and meals, but the
about status eliminates many jobs from his con-
young Negro girl considers such a job as "slave
sideration. Many teenagers will not accept even
status" and prefers a factory or clerical job
the Federal minimum of $1.60 an hour for un-
even though it may pay less.
skilled work; they prefer no work to acceptance
Some students looking for part-time jobs
of a "demeaning" wage for "menial" work.
after school and summer employment are less
In the State of Washington, the teenager is
insistent on high wages; they are not willing,
concerned about losing prestige with his peers
however, in the urban and suburban areas to
by working for a "low wage;" unemployment
accept a wage below the Federal minimum of
has more status. In Boston, Mass., despite con-
$1.60 an hour. Lower wages are more accepta-
sistently high rates of youth unemployment,
ble in rural, small-town and resort areas.
"there is an abundance of unfilled jobs for
which almost any youth could qualify. These
EMPLOYER ATTITUDES. These attitudes of unem-
jobs pay $1.60 an hour but even the $2 jobs are
ployed teenagers have little appeal for the aver-
unfilled." In Detroit, "many will not take less
age employer. A number said flatly that they
than $1.60-many kids may have unrealistic
will not hire anyone under 18, ostensibly in
FORD
130
many instances, because of the safety and hours
vorable attitudes were voiced toward students
restrictions of the child labor laws. However,
as part-time workers and those in vocational
these reasons would be less important if the em-
training and cooperative work programs.
ployer "could get a kid who is willing to work."
States labor and employment service officials,
OTHER FACTORS. Several other factors were
personnel directors, and employers in nearly
cited as having an unfavorable impact on the
every State cited the following as reasons for
employment of youth. In about half the States
not hiring the younger teenager and, in some
covered by the survey, the complexities, or "red
cases, those over 18, as well:
tape," involved in getting work certificates for
young people, or employer permits to hire stu-
"Absenteeism is high and SO is labor turnover"
dents and learners at reduced rates, were suf-
"Difficult to get kids to stick to the job"
"Stay only a few days"
ficiently frustrating to cause some employers
"Don't even show after referral"
not to hire anyone under 18 (especially when
"Long hair"
the learner period is short) and some teenagers
"Less dependable than adult"
"Lack sense of responsibility"
not to apply. For example, in North Carolina
the BLS Regional office reported.
LACK OF EDUCATION, TRAINING, AND EXPERIENCE.
The young jobseeker often feels it is too much
An almost universal reason given by employers,
trouble going through all the red tape
a trip
and others, for not hiring teenagers looking for
to secure the forms, then trips for the health ex-
full-time jobs was the general lack of education
amination, school record, employment and birth
and training. Experience seemed to be second-
certificates, and return trips to the issuing agency
ary at least for the under 18 age group. Em-
to secure a worker's permit. Quite frequently, the
ployers in the District of Columbia cited lack of
youth are frustrated to the extent that they aban-
skills and lack of "knowledge of the world of
don the idea of employment. The overall feeling,
however, is that procedures for securing a work
work" as the greatest factors affecting the em-
permit should be made simpler for both the em-
ployment of young people. "The majority are
ployer and the minor.
ill-equipped in both education and the psycho-
logical sense to enter the labor force in a mean-
In Pennsylvania
ingful and rewarding fashion." In North Da-
There is a great deal of red tape involved before
kota, most jobs require some skill, and the "kids
an employer can get permission to hire youth at the
don't have it." In a number of States, employ-
differential rate. Employers must apply in writing
ment blamed the school system, as in California
for permission to hire at $1 an hour. They must
where an employer association representative
also submit a training program which is subject
to inspection by the Bureau of Labor Standards.
summed it up, as follows:
In addition, all minors under 18 years of age must
Today's youth are dumped on the labor market
have an employment certificate signed by the par-
without any orientation. Kids don't know how to
ent or guardian, the minor, and the employer. This
look for a job. Youth are less productive, less pre-
certificate must also designate the job for which
pared in reading and arithmetic. High school grad-
the minor is being hired and the employer must
uation is no longer any guarantee of ability to
obtain a new certificate every time the minor
read and write.
changes jobs.
Employers also complain of extensive misrepre-
In about an equal number of States, employers
sentation of qualifications and work experience.
found no problems with the relatively simple
A few voices suggested that employers might
systems in effect. Some went further, as in Ore-
use these arguments-irresponsibility and lack
gon where one employer said the "work permit
of training-to disguise a general unwillingness
to hire teenagers, and particularly the Negro
procedure was a help in his operations, reliev-
ing the company of a lot of investigative work
ghetto resident.
Most of these complaints, as well as those
by providing such information as proof of age
listed in the preceding section, were directed
and authority to work in his type of establish-
against applicants for full-time work; more fa-
ment."
is
FORD
131
For the teenager living in the "inner city,"
some type of vocational training. All people inter-
viewed agreed that there is growing pressure on
the cost of transportation to suburban concen-
the employer to hire at more than the minimum
trations of industry may make the holding of a
wage. However, they also agreed that the employer
job an economic impossibility. This was cited as
is reluctant to do SO because of the quality of the
an unemployment factor in most of the large
workers he is receiving.
metropolitan areas.
and in New England
Union barriers to employment of youth under
18 appear to be significant, primarily for retail
In most of New England, employers did not usually
find young people the ideal employee in terms of
grocery trade and construction. However, in
turnover, absenteeism, and motivation. Neverthe-
these industries, the limitations on night work
less, they seemed willing to employ all they could
and the ban on hazardous occupations, respec-
get. The high statistics rate of unemployment of
tively, seem to be of greater importance. In a
teenagers seems paradoxical to many employers
few States, it was suggested that elimination of
and employment agents as the job vacancies, par-
ticularly in the metropolitan areas, exceed the
Social Security and Unemployment Insurance
number of applicants. The jobs that go unfilled
payments for part time and summer employees
usually pay the minimum wage, require no skill,
would encourage employers to hire more teen-
and perhaps appear to be dead-end to the young-
agers.
sters. Experience with ghetto youths further ac-
cented the fact that the youngsters were often
seeking wages higher than the minimum wage,
Conclusions
particularly when the job was not appealing.
The report for the State of Pennsylvania
The general conclusion of this brief study then is
sums up youth unemployment in the following
that unemployment among youth in the New Eng-
terms:
land region cannot be considered in the traditional
sense of a simple unemployment model. The youth
In general, there seems to be some sort of stand-
labor supply function seems to include variables
off. The youth in the labor force are unwilling to
at least as significant as the wage. Hinted at were
accept work at either the State or Federal mini-
such elements as the affluence of society, the exist-
mum wage levels and hardly anyone can be per-
suaded to work at the State youth differential
ing welfare system, the moribund Protestant ethic,
and the vastly different frame of reference with
wage. The employer is also unwilling to pay more
than the minimum wage or differential unless he
which many youngsters view work as part of their
can hire someone who is skilled or at least had
life.
FOOTNOTES
1 The Fair Labor Standards Act allows differential
5 Provisions relating to cooperative education pro-
rates to be paid to learners, apprentices, messengers,
grams are not included. For information on States
handicapped workers, and full-time students employed
which have such programs, see appendix B.
in retail or service establishments or in agriculture if
6 Law effective February 1, 1970. See footnote 4 page
special certificates first are obtained from the U.S. De-
266.
partment of Labor.
7 For a detailed description of child labor laws in the
2 Estimates of employees covered by State minimum
States, see Bureau of Labor Standards Bulletin 158
wage laws only are for those States having minimum
(revised), State Child Labor Standards, U.S. Depart-
wage laws or orders enacted or revised from 1962 to
ment of Labor, 1965.
December 1, 1968. For further information, see U.S.
8 Some States are taking another look at their safety
Department of Labor, Minimum Wage and Maximum
Hours Standards Under the Fair Labor Standards Act
regulations. In Oregon, the laws were revised recently
to allow minors to operate farm tractors and to act as
-submitted to the Congress-1969.
helpers on trucks, thus creating additional jobs for
3 Data on coverage in Puerto Rico and Texas are not
youth. Officials in Connecticut have looked more closely
included.
at the occupations and industries presumed to be dan-
This exemption does not apply to youth employed in
gerous and found that a considerable number could be
agriculture who are paid on a piece rate basis.
eliminated from the prohibited list.
FORD
132
APPENDIX A
Type of differential provisions in States minimum wage laws, 1969
Type of differential
Type of law
Comments
State
establishing
rate
Minors (under 18
Students
Learners
unless otherwise specified)
Alabama
None
Alaska
Statute
Exempts part time workers
Lower rate by application
Arizona
Wage order
Exempt
Specific rate
Law applies to women and
minors only.
Arkansas
Statute
Lower rate by application 17
Lower rate by application
California
Wage order
Specific rate
Specific rate
Specific rate
Law applies to women and
minors only.
Colorado
Wage order
Specific rate
Specificrate
Law applies to women and
minors only.
Connecticut
Statute
Specific rate
(1)
Lower rate by application
Wage order
Specific rate
Specific rate
Delaware
Statute
Lower rate by application
Lower rate by application
District of Columbia
Wage order
Specific rate
Specific rate
Specific ate
Florida
None
Georgia
None
Hawaii
Statute
Specific rate 1
Lower rate by application
Idaho
Statute
Lower rate by application
No minimum rates have
Illinois
Wage boards-
been specified.
inoperative.
Indiana
Statute
Exempt
(2)
(3)
Iowa
None
No minimum rates have
Kansas
Wage boards-
been specified.
inoperative.
Kentucky
Wage order
Specific rate
No minimum rates have
Louisiana
Wage boards
been specified.
inoperative.
Maine
Specific rate 2
Lower rate by application
Statute
Maryland
Statute
Exempt
Specific rate
(1)
Lower rate by application
Massachusetts
Statute
(4)
Specific rate
Wage order
Michigan
Statute
Exempt
Lower rate by application
Wage order
Specific rate
Law applies to women and
Minnesota
Specific rate
minors only. Specific
rates for minors in
amusement and recrea-
tion only.
Mississippi
None
Missouri
None
Montana
None
Nebraska
Statute
Exempt
Otherwise provided by law"
No provisions have been
made for learners.
Nevada
Statute
Specific rate
Specific rate
Specific rate
New Hampshire
Statute
Specific rate
Wage order
New Jersey
St tute
Exempt
Lower rate by application
Lower rate by application
Minors covered by wage
Wage order
Specific rate
Specific rate
Specific rate
orders only.
New Mexico
Statute
Exempt
"Otherwise provided by law'
New Yor
Statute
Specific rate
Specific rate
Specific rate
Wage order
Specific rate
Specific rate
Specific rate
Exempts those under 16, over 65
Lower rate by application
North Carolina
Statute
Wage order
(1)
Specific rate
North Dakota
Exempt 1 :
Specific rate
Law applies to women and
Ohio
Wage order
minors only.
Oklahoma
Statute
Exempt
Lower rate by application
Lower rate by application
Oregon
(2)
Minors covered by wage
Statute
Exempt
Specific rate
Specific rate
Specific rate
order only.
Wage order
Pennsylvania
Specific rate :
Specific rate
Statute
Lower rate by application
Puerto Rico
Statute
Wage order
Rhode Island
Statute
Exempt
Lower rate by application
Wage order
Specific rate
South Carolina
None
Statute
Exempts those under 17
Lower rate by application
South Dakota
Tennessee
None
Effective January 1. 1970.
Texas
Statute
Exempt if a "dropout"
$
Exempt $
Specific rate
Specific rate
Law applies to women and
Utah
Wage order
minors only.
Vermont
Exempt
Lower rate by application
Statute
Exempt
Specific rate
Wage order
Virginia
None
Statute
Exempt
(1)
Lower rate by application
Minors covered by wage
Washington
Specific rate
Specific rate
orders only.
Wage order
West Virginia
Statute
Exempt
Exempt
Persons engaged in on-the-
job training are exempt.
Wisconsin
Wage order
Specific rate
(1)
Lower rate by application
Law applies to women and
minors only.
Wyoming
Statute
Exempt
1 Special permits or exemptions for those in co-operative education programs.
4 Massachusetts exempts those under 17 employed in agriculture.
$
1 Students working for the school or college they are attending are exempt.
If not employed in agriculture and paid on a piece rate basis.
8 Indiana exempts trainees in embalming.
FORD
133
APPENDIX B
Basic adult minimum wage rates and specified 1 differential rates by State, June 1969
Basic adult minimum wage
Differential
State
Youth minimum
Applicable to
Comments :
Legal authority :
Rate per hour
Rate
Amount of
rate as a
per hour
differential
percent of
adult minimum
Alabama
None
Alaska
General
$2.10
Arizona
Wage order:
Dry cleaning
.60
$.54
$.06
90
Learners
Effective 9/10/54
Laundry
.52
.47
.05
90
Learners
Effective 9/12/48
Retail
.55
.50
.05
91
Learners
Effective 8/10/54
Arkansas
General
1.00
California
General
1.65
1.35
.30
82
Minors; students;
learners.
Colorado
Wage order:
Beauty service
1.25-1.00
1.00-.60
.25-.40
80-60
Learners
Others
1.10
.90
.20
82
Students; learners
Connecticut
General
1.60
1.25
.35
78
Minors; learners
Delaware
General
1.25
District of Columbia
Wage order:
Retail trade
1.80
1.60
.20
89
Minors; learners
Others
1.60
1.45
.15
91
Students
Part-time workers
under 16.
Florida
None
Georgia
None
Hawaii
General
$1.40
1.10-.95
.30-.45
79-68
Students
Lower rate for under
16 years.
Idaho
General
1.25
1.00
.25
80
Learners
Illinois
None
Indiana
General
1.25
Iowa
None
Kansas
None
Kentucky
General
5 75-.65
.65-.55
.10
87-85
Learners
As of 1961 and 1962.
Louisiana
None
Maine
General
1.50
1.125
.375
75
Students
Under 19 years.
Maryland
General
1.30
1.04
.26
80
Learners
Massachusetts
General
1.60
Agriculture
1.50
Wage order:
Mercantile
1.60
.90
.70
56
Learners
Others
1.60
.85
.75
53
Learners
Michigan
General
1.25
Minnesota
Wage order:
Amusement
5 .85, .80, .75
.75
.10, .05, .00
88-94
Minors
Effective 2/17/57
Personal service
5 1.00-.90
95-.85
.05
95-94
Learners
Effective 4/22/61
Public housekeeping
1.00-.80
.95-.75
.05
95-94
Learners
Effective 7/8/59
Retail
$.85-.70
.70-.60
.15-.10
82-86
Learners
Effective 1/14/57
Laundry
'.85-.70
Effective 1/14/57
Others
$1.15
Mississippi
None
Montana
None
Nebraska
General
1.00
Nevada
General
1.30
1.15
.15
88
Minors
1.05
.925
.125
88
Learners
Girls 18 and under.
New Hampshire
General
1.60
1.20
.40
75
Minors
New Jersey
General
1.50
Minors exempt from
statute; covered
by wage order
only.
Wage order:
Beauty culture
4 1.35-1.25
.15-.25
90-83
Minors
Laundry, dry cleaning, dyeing
1.25
.25
83
Minors
1.20
.30
80
Learners
Mercantile
1.00
.50
67
Minors
.85
.65
57
Students; learners
New Mexico
General
1.60
Agriculture, service employees
1.30
New York
General
1.60
1.35
.25
84
Minors
1.20
.40
75
Learners
Wage order:
Hotel
1.60
1.35
.25
84
Minors
1.20
.40
75
Students
North Carolina
General
1.25
North Dakota
Wage order:
Dry cleaning
1.00
.90
.10
90
Learners
Laundry
.90
.80
.10
89
Learners
Manufacturing
1.25
1.15
.10
92
Learners
Mercantile
1.00
.75
.25
75
Learners
Professional, technical, clerical
1.45
1.30
.15
90
Learners
Public housekeeping:
Chambermaid
1.00
.75
.25
75
Learners
Waiter; kitchen help
.90
.65
.25
72
Learners
Effective 6/28/66
Telephone
1.25-1.00
1.00-.75
.25
80-75
Learners
See footnotes at end of table.
134
APPENDIX B
Basic adult minimum wage rates and specified 1 differential rates by State, June 1969-Continued
Basic adult minimum wage
Differential
State
Youth minimum
Applicable to
Comments $
Legal authority ,
Rate per hour
Rate
Amount of
rate as a
per hour
differential
percent of
adult minimum
Ohio
Wage order:
Cleaning dyeing
$
.90
$
.75
$
.15
83
Learners
Effective 1/2/63
Food and lodging
4.75-.55
.60-.40
.15
80-73
Learners
Effective 2/1/65
Laundry
1.00
.85
.15
85
Learners
Retail trade
1.25
1.00
.25
80
Learners
Oklahoma
General
1.00
Oregon
General
1.25
Minors exempt from
statute; covered
by wage orders
Wage order:
only.
Amusement, recreation
1.25
.60
.65
48
Minors
Beauty shops
1.25
1.15
.10
92
Minors
Canning, freezing. processing
1.25
1.00
.25
80
Minors
Homes for the aged, child care
.85
.40
68
Minors
agencies.
1.25
$.75-.65
50-.60
60-52
Learners
Hospitals, nursing homes
1.25
1.00
.25
80
Minors
$.85-.75
40-.50
68-60
Learners
Laundry, cleaning, and dyeing
1.25
.80
.45
64
Minors
Manufacturing
1.25
1.00
.25
80
Minors
Mercantile
1.25
1.00
.25
80
Minors
.85
.40
68
Students; learners
Minors
.60
.65
48
Minors
All industries not
otherwise covered.
Office
1.25
1.00
.25
80
Learners
Personal service
1.25
.75
.50
60
Minors
Preparing poultry, etc
1.25
.75
.50
60
Minors
Public housekeeping
1.25
.85
.40
68
Minors
Telephone and telegraph
1.25
.75
.50
60
Minors
Pennsylvania
General
1.30
1.00
.30
77
Rhode Island
Students; learners
General
1.60
Wage order:
Laundry, dry cleaning
1.60
1.30
.30
81
Students
Public housekeeping
1.60
.55
1.05
34
Students
Restaurant and hotel
1.60
77-.57
.83-1.03
48-36
Students
Retail trade
(without meals).
1.60
.95-.85
.65-.75
59-53
South Carolina
Students
None
South Dakota
General
1.00
Tennessee
None
Texas
General
1.25
Utah
General
& 1.15-1.00
.93-.78
.22
81-78
Students
5 1.15-1.00
1.05-.90
.10
Vermont
91-90
Learners
General
1.60
Wage order:
Hotel, motel, tourist place,
'1.40-.85
1.15-.75
.25-.10
82-88
Learners
restaurant.
Other
1.40
1.25
.15
89
Virginia
Learners
None
Washington
General
1.60
Minors exempt from
statute; covered
by wage orders
Wage order:
only.
General amusement, recreation
1.60
1.25
.35
78
Minors
1.00
.60
63
Learners 7
Health care
1.60
1.20
.40
75
Minors 7
Laundry, dry cleaning
1.60
1.25
.35
78
Minors
Manufacturing
1.60
1.25
.35
78
Minors
Mercantile
1.60
1.25
.35
78
Minors
1.00
.60
63
Learners 7
Public housekeeping
1.60
1.25
.35
78
Minors
1.00
.60
63
Learners 7
Theatrical, amusement
1.60
1.25
.35
78
Minors
1.00
.60
63
Others
Learners 7
1.60
1.25
.35
West Virginia
78
Minors
General
1.00
Wisconsin
General
1.30
1.10
.20
Wyoming
85
General
Minors
1.30
1 Rates for students and learners may also be set upon application by employer.
(See appendix A.)
3 Effctive date given for laws which establish an adult minimum of less than $1.00.
, Legislation (statute. wage order. or combination thereof) establishes same basic
4 Rate varies by occupation or industry.
$ Rate varies by zone.
rate; wage orders are specified by name only where provisions vary among them;
only those wage orders are included which establish differential rates.
6 Rate varies by degree of experience.
T Applies to minors during first 48 hours of employment.
AND
CHAPTER X
Youth Wage Rate Schemes in Western Europe
and Canada and Their Effect on
Youth Unemployment
Modern industrialized countries have had
This study reviews unemployment among
varying degrees of success in coping with youth
youth¹ in three countries-the United Kingdom,
unemployment. Some such as the United King-
France, and Canada. Shorter evaluations of the
dom, Japan, Germany and The Netherlands
subject are made for West Germany and The
have been quite successful. Others have more or
Netherlands. Government, labor, and employer
less serious problems. A study of the relative
representatives were interviewed in all but
successes and failures in this area is difficult be-
West Germany. An attempt has been made to
cause statistics are often deficient and not many
evaluate the status of youth employment, the
useful studies have been made about the princi-
factors contributing to the levels of unemploy-
pal causes of unemployment among young peo-
ment, and in particular, the effect of the
ple. The most successful countries, in terms of
schemes of lower wage rates for young people.
maintaining low unemployment rates for teen-
The general situation for each country can be
agers, have not bothered to analyze the cause of
briefly described as follows:
their success.
In the United Kingdom, unemployment of
both youth and adults is around 2 to 2.5 percent
John W. Piercey, management consultant, prepared
(table 10.1). There are good counselling and
this chapter under contract for the Bureau of Labor
Statistics. Officials of governments, trade unions, em-
placement services and a large apprenticeship
ployer organizations and foundations were interviewed
program. Youth enter employment at about 30
in Canada (also the provinces of Quebec and Ontario),
percent of adult earnings and, by steps, reach
the United Kingdom, France and The Netherlands.
adult wages commonly at age 21 for men and 18
Materials and views also were solicited by letter and
for girls.
telephone from people in seven provinces in Canada
and from various individuals in the United Kingdom
Unemployment data in France are not cur-
and France. The U.S. Labor Attaches and their staffs
rent but adult unemployment is low and youth
were most helpful in the countries visited. Appreciation
unemployment high-probably about 10 percent
is also due the foreign labor attaches assigned to Wash-
in early 1968. Counselling and placement serv-
ington from the above countries and to various U.S.
ices are widely criticized as inadequate, and
Department of Labor officials. Views expressed in this
study are solely the responsibility of the author.
participation in apprenticeship programs is
Footnotes begin on p. 148, tables on p. 149.
about half that of the United Kingdom. Youth
FORD
135
136
enter employment at about 70 percent of adult
Apparently, where the mass of youth are in-
earnings at age 16 and reach the adult rate at
volved in apprenticeships, unemployment of
18.
youth will be low.
In Canada, adult unemployment was under 5
What are the abatements in wages for youth
percent and youth unemployment just under 11
In Canada the reductions are small-perhaps
percent in 1968. There are the usual employ-
averaging 20 percent-and the duration for the
ment services available to youth but no special-
individual is only a year or SO. The reductions
ized services except for students. The appren-
in the United Kingdom and The Netherlands
ticeship program is proportionally larger than
are large and extend over about six years. In
that of the United States, but much smaller
France the reductions are only 20 to 30 percent
than most European programs. The rates for
and, considering the compulsory school age of
youth are not much below the minimums set for
16, are in effect about 2 years. The German
adults and have a brief duration. There is com-
youth rates are moderate but the apprentice-
pulsory schooling to age 16 and adult rates are
ship program is, in effect, the system of reduced
effective at 17 or 18.
earnings for youth.
The German and Dutch scenes are similar to
Although there are many other factors-es-
the British-low unemployment for both adults
pecially the machinery of assisting youth to find
and youth; good counselling and placement
jobs-certainly the size of the apprenticeship
services, large apprenticeship systems and
programs and the extent of the application of
heavy abatements from adults rates, though
the youth rate schemes have a definite correla-
smaller abatements in the German case.
tion with the rate of employment of youth in
Canada, France, and The Netherlands-
the countries considered.
have statutory minimum wages. In Canada
Youth unemployment levels result from a
and France the minimum wage laws provide
combination of factors. The number of youth in
lower rates for youth. In all of the five countries
the population is very important. Here again
but Canada, collective bargaining, in effect, also
West Germany and the United Kingdom have
sets minimum wages by branch of industry. In
the advantage over the United States, Canada,
these four European countries a system of
and France. The machinery for helping youth
lower minimum rates are included in the collec-
make the transition from school to work is
tive bargaining contracts. Thus youth rate
weak in France and strong in the United King-
schemes are in two structures: in statutory
dom and Germany.
minimum wage laws and in collective bargain-
Indirect evidence exists that systems of lower
ing. Of the five countries only France has youth
rates for youth are essential to the achievement
rate schemes both in collective bargaining and
of full employment for youth. In some Canadian
in the statutory minimum wage law. The
provinces-particularly in Quebec-the Minis-
United Kingdom has a type of quasi-collective
bargaining in Wage Councils for the unorgan-
try of Labour officials were quite positive that
ized trades, which also set minimum rates for
the lower rates were useful in placing youth in
youth.
some kinds of employment and in some areas.
The apprenticeship programs-which are a
In British Columbia the rate system was felt to
system of lower rates in themselves-have spe-
be of no value in the present labour market.
cial relevance to our study for (1) where they
Government officials in Canada as well as other
are large they provide employment security to a
countries believed that the lower rates were nec-
good portion of the young people in the labor
essary and useful.
force and (2) they provide for rates substan-
Fearing that they might depress wages in al-
tially under adult wages and thus tend to deter-
ready low-paying industries, trade union leaders
mine the youth rate schemes outside of appren-
in Canada were rather negative about youth
ticeships. Table 10.2 shows that the United
rates. In the United Kingdom, trade unionists
Kingdom has double and Germany three times
saw some possible abuses but in general thought
the relative number of apprentices as France.
the youth rates justified by the various liabili-
FORD
137
ties to the employer in youth labor. They felt
not tend to apply lower rates universally simply
that nonapprenticed youth must be paid rates
because the rate system existed in law.
that were similar to those of apprentices. Youth
wage rates in France, according to a French
The experience in the United Kingdom
trade unionist, are a means of exploiting youth
who often produced more on the job and were
British experience is especially valuable be-
paid much less. French labor-management con-
cause the United Kingdom has been successful
tracts have interesting examples of exceptions
in providing full employment for young people
to youth rates when the youth's training or
(table 10.3) and because the system of lower
productivity justify higher pay or when the
rates for young workers is widely applied.
youth is performing "adult's" work.
The United Kingdom has only occasionally
Except for Canada, where some provinces
made labor force surveys; hence, data are based
have recently adopted youth rates, youth rates
on administrative statistics such as registration
have not been consciously considered as a means
at employment exchanges. Even if unemploy-
of counteracting unemployment among young
ment is understated, all evidence points to a
people. In Europe, the system simply derived
very low rate of unemployment for adults as
from a time when boys and girls went to work
well as youth.
before they were physically grown and lacked
Labor supply-demand is healthy as shown by
skills and experience. It was natural to "pay a
the Monthly Statement on the Employment Sit-
boy a boy's wage." Apprenticeships set the pat-
uation for Young Persons issued by the General
tern.
Youth Employment Executive of the Depart-
Has the youth rate system a future in view of
ment of Employment and Productivity which
the rapid social and educational changes?
shows substantially more vacancies than un-
Youth now enter the labor market at a later age
employed 15- to 18-year-old youths (table 10.4).
because of constantly rising compulsory school
Some regions varied in supply-demand but
age requirements. With better diets they are
only in the Northern, Wales, and Scotland re-
healthier and stronger. They are better schooled
gions were the number of unemployed and the
and trained than their elders and may enter a
vacancies nearly in balance. Girls were in a
firm now with training more appropriate for
more favorable position than boys in all re-
today's technology than older workers. Added
gions.
to these factors are the rising expectations and
Those interviewed for this study stated that
ambitions of young people. Do these changes
youth was much in demand in most communi-
make a youth differential rate system an
ties and occupations. This demand was attri-
anachronism? Some British respondents, in-
buted to numerous factors: (1) no social secu-
deed, saw the system disappearing in time. In
rity taxes for youth under 16, (2) preferen-
any case some felt that there was need to rede-
tially low rates on boys and girls in the Selec-
fine "youth" and that the age of 26, 23, or even
tive Employment Tax of 1966; (3) employers
21 was no longer a proper boundary between
desire to protect their future labor supply; (4)
youth and adult.
the lower wage scales for youth both under the
To what extent have youth rates, which are
Wage Councils and in regular collective bar-
permissive and not manadatory on the em-
gaining; (5) the very extensive apprenticeship
ployer, become traditional and universally ap-
schemes with their lower wages; and (6) the
plied where they are no longer justified? Can-
new post-war attitude toward young people
ada, where youth rates are rather new, does not
which places a higher priority on their role in
have that problem and the lower rates are ap-
society.
plied only in certain kinds of employment. Data
Unlike France, the birthrate after the war
on earnings of youth in the United Kingdom do
did not put pressures on the labor market.
not indicate many exceptions to universal appli-
From 1950 to 1956 there was a lower level of
cation of youth rates. Perhaps a country adopt-
births-an age group which would now be com-
ing a youth rate system for the first time would
ing into the labor force.2
138
Extension of the school leaving age has had a
gies and skills. A 1962 Government white paper
moderate effect on the number of youth en-
said:
tering the labor force. After the war compul-
sory schooling was extended to age 15, but the
At present, training for industry in this country
planned advance to age 16 has had to be de-
is primarily the responsibility of individual firms,
ferred until 1972-73 for budgetary reasons.
through Government, local education authorities,
and other agencies such as the City and Guilds of
Britain thus differs from France and other
London Institute are helping. A serious weakness
modern nations in this regard.
in our present arrangements is that the amount
Schooling beyond the compulsory age is lim-
and quantity of industrial training are left to the
ited to a relatively small percentage of youths.
un-coordinated decisions of a large number of in-
Although 91 percent of the 11-14 year olds and
dividual firms. The Government has therefore de-
57 percent of 15 year olds were enrolled in
cided that the time has come to strengthen and
school, the proportion dropped to 24 percent at
improve the existing partnership between industry,
the Government and the educational authorities in
age 16, 12 percent at age 17, and 4 percent at
the provision of industrial training.
age 18.
In 1965-66, 509,000 left school to enter full-
As a result of a series of studies, the In-
time employment. This included 328,000 who
dustrial Training Act of 1964 was adopted. Its
were 15 years of age, 122,000 who were 16,
purposes are: to ensure an adequate supply of
35,000 who were 17 and 24,000 who were 18
years of age or over. Most British youth enter
properly trained men and women at all levels of
fulltime employment by the age of 16. The po-
industry; to improve the quality and efficiency
tential expansion of education to higher age lev-
of industrial training; and to share the cost of
els offers Britian a cushion to counteract unem-
training more evenly among firms. Industrial
ployment of youth in future years.
training boards have been established for 26
Although the quantity of youth available to
branches of industry covering 15 million work-
the labor market is expanding only moderately,
ers. A steady expansion of training programs
the quality is unquestionably higher due to the
and released-time attendance at government-op-
extensive educational reforms underway in the
erated colleges has been developed for youth not
post-war period. This improvement has two as-
included in apprenticeships. In 1968, 12 percent
pects: changes in the regular schools, and im-
of the boys and 14 percent of the girls entering
provement and intensification of education and
employment were in programs providing for
training for those at work.
planned training, often for outside school at-
Training for industry has been the domain of
tendance one day a week.5
industry, largely implemented through appren-
The apprenticeship program remains a major
ticeship. The present apprenticeship system
channel for employment and training. Of the
was organized in the Victorian age after the
256,000 boys who entered employment in 1968,
Elizabethan apprenticeship code had fallen into
110,000 or 43 percent obtained apprenticeships.
disuse. Unions and employers adopted a com-
Only 7.4 percent of the girls were apprenticed.
pact based on 5 years of apprenticeship before
The Official Handbook for 1969 gives the num-
the youth entered a skill and joined the union.
ber of apprentices as 112,000 for the construc-
Concomitantly training courses were developed
tion trades and 800,000 for other employment, a
in schools and technical colleges. These two sys-
total of 912,000. A comparable number in the
tems had little coordination until recent
United States in relation to population would be
changes.³
about three million. Although U.S. apprentice-
In the post-war period a number of studies
ships are restricted largely to areas such as con-
focused on the inadequacies of the apprentice-
struction and printing, they are found in almost
ship system, particularly its content, method,
every kind of occupation and industry in Brit-
and organization. Boys and girls not entering
ain including agriculture, basic manufacturing,
apprenticeship needed training in new technolo-
distributive trades, and insurance.
FORD
OTHER
139
Though prevalent, the apprenticeship system
to 40 or 50 percent are placed on their first job
has been widely criticized. Gregoire points out
through this service.
that no real supplementary training was being
given a large proportion of apprentices.⁶ The
System of lower rates for youth
training has often been called obsolete for the
higher technology in today's industry. Trade
The United Kingdom does not have a uniform
unionists interviewed thought in general that
national minimum wage system, although the
the training in many industries and occupations
Department of Employment and Productivity
was too long. The trend is toward shorter terms
has made a study for possible adoption of such
of apprenticeship but most are still 5 years.
a scheme.⁸ Minimum wages are, however, estab-
The extent of the apprenticeship system de-
lished by two kinds of agreements: (1) collec-
termines the level of young people's wages. Var-
tive bargaining agreements which cover 14.5
ious government, labor, and management repre-
million workers, and (2) agreements negotiated
sentatives were unanimous in stating that to
under the Wages Council System by labor, man-
pay adult wages to nonapprenticed youth would
agement, and public members for unorganized
be impractical; but to pay standard low rates,
workers in 57 branches of industry and repre-
such as 30 percent of adult wages for a 15-
senting 3.5 million workers.9
year-old, to youth in apprenticeship programs
In nearly all cases, both kinds of agreements
would discourage youth from accepting appren-
provide for a scale of reduced wages for youth.
ticeships.
The agreements set forth step increases by age,
One of the principal factors contributing to
over a span of several years, until the adult
high employment of youth in Britian is the ad-
wage is received. Boys and girls usually have
ministrative structure for channeling youth
separate schedules. The provisions for the
into jobs. The main structure for aiding youth
youth rates vary as to age at which the adult
seeking employment is the Youth Employment
wage is received, the number of years of step
Service, created under the Employment and
increases and the rate, or percentage of adult
Training Act of 1948. Its functions are: (1) To
rate, at each step.
inform young people, their parents, and their
Samples are given of the scale of youth rates
schools about employment and careers; (2) to
for both the wages council system and regular
give vocational guidance to young people in
labor management contracts in appendix I of
their later years at school; (3) to help young
this chapter. Youth rates commonly start at
people find suitable employment and employers
about 30 percent of adult rates at age 15 and
to find suitable workers; and (4) to follow-up
reach the adult wage at 21 years of age for men
the progress of young people in employment
and at 18 for women. This does not mean the
and give further help and advice when needed.
women may surpass the men in earnings for
Although the Central Youth Executive oper-
women may earn only 70 to 90 percent as much
ates under the Ministry of Labour, 500 youth
as men. There is some tendency for the age for
employment offices are established at the local
achieving adult earnings to be reduced. Re-
level by the school authorities.⁷ (If the school
cently, for example it was reduced from 24 to
authorities fail to do so, the Ministry of Labour
21 for shop assistants.
establishes the local structure.) This responsi-
The extent to which young people (age 20
bility for the schools is based on the principle
and under) on lower wages are doing what
that adequate guidance at the transitional stage
might be called "youth" work rather than work
from school to work needs to be based upon a
normally assigned to adults is not known. Some
thorough knowledge both of the youth and of
contracts, however, do accept the principle that
the field of employment. Although children
all doing adult work should be paid adult wages.
from the more affluent families do not usually
Contracts for the cement and the rubber indus-
avail themselves of this service, as many as 85
tries, for example, provide: "Juveniles em-
percent of school leavers get counselling and up
ployed on recognized adult work shall be paid
FORD
WALD
140
as adults." The contract between the Union of
gradual steps to an adult wage youth would
Shop, Distributive and Allied Workers and the
have nothing to look forward to, nothing to
Retail Co-Operative Movement gave the follow-
whet his ambitions.
ing scale for skilled butchery assistants, those
The minimum rates for youth are substan-
having completed their apprenticeships and
tially below those for adults but are they uni-
having passed the Craftsman's Certificate Ex-
versally applied in practice or, as some officials
amination or the Meat Trades Diploma Exam-
suggested, are youth often paid at rates higher
ination: (rate pre month in shillings)
than these minimums? The half-yearly survey
Age
18
19
20
21
of earnings made by the Department of Em-
Rate
183/6
201/6
221
273/6
ployment and Productivity would indicate that
youth rates are widely applied.¹¹ In the October
In this case, skilled operatives are paid substan-
1968 report of hourly earnings in manufactur-
tially less for no reason except age.
ing industries, men over 21 were making ap-
Certainly a large part of the youth receiving
proximately double the earnings of men under
lower wages are doing work equal to that of an
21, and the same held true in other occupations.
adult. Some are doing boy's and girl's work-
The differences for women and girls were less
such as messenger boys and helpers.
pronounced because women have substantially
The employer must consider certain liabilities
lower earnings. The disparity is even greater in
in hiring youth. Child protection laws limit
weekly earnings as child labor laws limit over-
overtime, weekly hours, night work, continuous
time earnings. (See appendix II for hourly and
work, and SO forth. A special study commission
weekly earnings by age.)
recently has recommended some mitigation of
such restrictions both for youth and women, os-
Conclusions of British experience
tensibly to improve their earning potentiali-
ties.¹⁰
An evaluation of the usefulness of the youth
Increasingly youth accept employment under
rate system in counteracting unemployment is
agreement for a planned training program
difficult. A number of officials interviewed
under which young people are paid while they
attend college one day a week.
thought that youth rates had nothing to do with
In discussions with various management,
the high employment rate. However these
labor, and government officials in Britain, there
officials conceded that fewer youth would be em-
was an assumption that boys and girls are not
ployed if they had to be paid at adult rates. One
worth as much on the job as adults. They are
said that an employer might well say: "This job
not as strong physically, have less stability, are
is worth so much to me-if I can hire a worker
more prone to accidents, are less experienced,
at that price I will do so-otherwise the job can
and lack the judgement and reliability of adults.
remain vacant." An official of the Transport
Some saw youth rates as a prolonged "learner's
and General Workers Union said larger employ-
rate" for the period when the youth is maturing
ers commonly take on far more young workers
and gaining all the physical, emotional, and at-
than are needed because a young worker at
titudinal qualities of adulthood.
age 15 can normally be employed for about
Most respondents admitted that youth rates
one-third the wage of a man. The employer may
-even though modified gradually-extend to
take on youth generously as he is building up
an age level which no longer can be character-
and training a future labor supply. Most indus-
ized as "youth." Some saw the system disap-
tries and areas compete for young people. How-
pearing in a squeeze between a drop in the age
ever several trade unionists commented about
of applying the adult wage and the rise in the
school-leaving age.
demoralizing effect on the attitude of young
Other justifications for youth rates have a
workers when there was not sufficient work to
broader context. One is the need of youth for
keep them usefully employed.
less income compared with adults. Another,
Although it is impossible to evaluate the fac-
given by a trade unionist, was that without the
tors making for full employment of youth,
FORD
RALO
141
cheapness of this factor of production appears
from 1962 and preliminary data from the 1968
to be a major reason for its full utilization.
census. Otherwise only administrative statistics
None of those interviewed thought that in to-
and studies of limited scope are available to es-
day's full employment, young people were tak-
timate the rate of unemployment for the 15-19
ing jobs away from adults to any significant
age group. Such an estimate would place youth
extent. Obviously this would tend to be the case
unemployment at about the 10 percent level.
if there were considerable unemployment. Nor
Among factors which affect the level of youth
was the practice of laying off a youth when he
unemployment is demography. Unlike the
reaches the age to receive adult wages seen as
United Kingdom, the postwar baby boom has
more than a very rare occurrence. This practice
boosted the youth segment of French popula-
too might be different in a recession. Today,
tion (table 10.6) significantly. This trend
youth often leave an employer when the appren-
would have been greater without the advance in
ticeship or other planned training is completed.
the compulsory school attendance age to 16.
Table 10.7 shows the distribution of youth aged
The experience in France
15-24 among various activities. The data in the
last line of that table raises the question as to
The United Kingdom and France are alike in
whether unemployment of youth has not been
many ways-size of population, level of in-
seriously understated. Possibly a good part of
dustrial development, and development of edu-
the inactive youth are unemployed by generally
cation. Although both have a low level of adult
accepted standards. If half are unemployed, the
unemployment, youth unemployment is low in
rate of unemployment of this age group would
the United Kingdom and rather high in France.
be over 12 percent.¹²
France like the United Kingdom has a system
Estimates of youth unemployment vary
of lower rates for youth. The structure and ap-
widely. One study by the Social and Economic
plication of these rates are different. France
has a statutory minimum wage-Salaire Mini-
Council (SEC) suggested that as many as
mum Inter-professional Garanti (SMIG)
500,000 youth under 18 were unemployed. In
which was established in 1950. SMIG probably
another study the SEC said the figure might be
does not affect more than 10 percent of the
anywhere from 170,000 to 400,000. Norbert
labor force, primarily those in the unorganized
Alise, head of the youth section of the French
sectors of the economy such as small textiles
Confederation of Democratic Trade Unions
and woodworking manufacturing and retail
(CFDT) places the current figure at 350,000.
trade. The rest have minimum rates set under
Officials in France indicate the following
collective bargaining, as do other European
other causes of unemployment:
countries; minimums under collective bargain-
Young immigrants-many from Italy-have
ing are also "contracted rates." Under both
a language handicap. They lack general educa-
SMIG and the private sector agreements, there
tion and vocational training for modern indus-
is a system of reduced rates for youth under 18.
try. Rural youth lack general education, voca-
The SMIG system is very simple and provides
tional training, and mobility. They are willing
for percentage reductions from adult wages by
to relocate, but are restricted by lack of infor-
steps from 14 to 18 years; no special considera-
mation about jobs, difficulty in finding housing,
tion are made for zones, sex, or occupations.
and lack of government help to facilitate mov-
The provisions in regular collective bargaining
contracts are similar but more consideration is
ing. Family and friends pressure them to stay
given in applying the abatements to such factors
home; when 19, men enter the military
as seniority, competence, and equal pay for
services. 13 Employers are reluctant to hire
equal work.
youth who have not completed their military
Because no labor force surveys have been
service. For this reason, the draft age may be
published since 1964, France lacks adequate sta-
lowered to 18 years and shortened from 16 to 12
tistics (table 10.5). There are the census figures
months.
FORD
142
The rapid change in production methods and
cluded: "It is reasonable to suppose that the
technology has caused additional hindrances to.
young hesitate to waste time in long and fastid-
employment. A decline in some trades and an
ious administrative formalities with SO little
expansion in others have caused a drop in de-
chance of success.
mand, especially for the poorly trained. Agri-
Alise of the CFDT said that trade unions
culture, the source of jobs for rural youth in the
have demanded that employment services be im-
past, needs fewer workers. The metal industry,
proved and that a special youth employment
a traditional place of youth employment, now
office be set up to service young people. He indi-
requires less handwork and more experienced
cates the present difficulty lies in a lack of coop-
workers. Between 1948 and 1966, youth employ-
eration between the schools and employment
ment declined from 3.8 to 2.6 percent of total
service. Because of limited work experience, un-
employment in metal industries though employ-
employment compensation is available to few
ment increased. Textiles and clothing, another
youth. Only 4 percent of those under 18 have
employer of youth, have declined and employed
drawn such benefits.
fewer workers. Transportation, the one bright
France has recognized its educational defi-
exception to employment decline hires youth
ciency in preparing youth for the needs of a
without "qualifications" and is not affected by
modern economy and has restructured its sys-
limitations imposed by child protection laws.
tem. Compulsory schooling has been advanced
Location has much to do with unemployment.
to age 16; class will be de-emphasized; every
"In certain departments, the figures on youth
youth will receive the education he needs. All
unemployment reach alarming proportions:
children finishing the lower school at about age
30-40 percent in the North, Pas de Calais, la
11 will attend a 4-year secondary school. A vo-
Loire and la Marne, and 46 percent in Haut
cational course has been designed for those re-
Rhin."¹⁴
sisting traditional subjects.
Youth's interests and ambitions are incom-
Adult evening classes will enable older work-
patible with job opportunities. Thirty percent
ers to advance in their jobs. According to the
of the young people wanted the 3 percent cleri-
Ministry of Social Affairs, L'UNEDIC, and
cal jobs available; 9 percent wanted the 6 per-
L'INDEC, only 50 percent of the young workers
cent commerce jobs available; and 12 percent
studied had at least three years of vocational
wanted the 5 percent metal industry jobs avail-
study; 25 percent had from three to six months;
able. Thus, in the absence of career guidance,
and 25 percent lacked any training. Forty-five
youths base their job goals on circumstances
percent were without a generál diploma; 50
rather than reality.15
percent possessed a Certificat d'Etudes Premier
Bureaux de Placement, the employment serv-
Cycle du Second Degré (primary school, nor-
ice, employs only 8 officials for each 100,000
mally finished at age 12) ; and 6 percent the
Brevet d'Etudes Premaires Elémentaries (sec-
population, compared with 37 in the United
ondary school finished at age 16). Over 70 per-
Kingdom and 59 in Germany, and places only
cent had no technical training.
one in four young adults who bother to apply. A
A number of training programs which were
study by L'Union Nationale des Associations
originated for other groups, such as adults and
Familiales (L'NAF) reported that the 257
Algerians who repatriated, have been used on
young people in the study sought jobs in the
an ad hoc basis to train youth, usually after
following ways: friends, 13 percent; family, 37
military service. A new program has been pro-
percent; employment service, 12 percent; news-
posed which would place 50,000 young unem-
papers, 30 percent; and other methods, 8 per-
ployed through established training centers.
cent. Among employers covered in the study 61
Training and evaluation of abilities would be
percent said the employment service would not
emphasized rather than placement through
refer suitable candidates 20 percent said work-
training as is done with the manpower develop-
ers ignored the service; and 48 percent said the
ment and training programs in the United
service was inefficient. The L'NAF study con-
States.
FORD
143
After the "spring rebellion" of 1968, employ-
as adults. Others indicate that the full reduc-
ers feared the infiltration into their firms of
tions will not be implemented if the young
revolutionists who might disrupt production
worker justifies higher pay by his "productiv-
and were afraid to hire youth, according to M.
eness." The drug industry provides that "if
Guillen, an official of the Metal Industry Feder-
quality and quantity are equal to that of adults,
ation. Some writers discussing youth unemploy-
the pay will be equal."
ment have indicated that the social measures
In the absence of any comprehensive study,
promulgated by the government after the re-
there is no way of judging the extent to which
volts may have hurt youth employment. To pay
individual employers apply, modify or waive re-
for these measures and to protect the Franc,
ductions. Rate differentials for youths are per-
economic action was imposed which caused
missive, not required. Comparison of earnings
some retrenchment in all hiring.
of youth and adults would be valuable, but data
By using a formula and taking into account
on earnings are not current. Studies of earnings
the number of adults and other factors, CFDT,
from 1964 data give some indication of compar-
the trade union federation, has suggested that
ative earnings for youth. A study of low in-
employers be assigned quotas of young people to
comes by the Institute National de la Statis-
employ. Employers might argue that this radi-
tique gives the percentage of each age group
cal view is premature because of the serious
making less than 5,000 francs annually: all
deficiencies in education, training, counseling,
ages, 16.7 percent; 14-17 age group, 86.7 per-
and placement.
cent; 18-20 age group, 37.9 percent; and 31-40
age group (which had the highest earnings),
French system of lower rates for youth
7.7 percent. The same study gives annual earn-
ings for various age groups of workers: less
The similarities of the British and French
than age 18, 3,015 francs; 18-20, 5,616; 31-40,
youth wage schemes are more in form than in
9,405; all ages, 8,208 francs. Earnings in
application. The French scheme is less universal
white-collar occupations were slightly higher
and has less impact in earnings and time re-
than in "worker" categories but ratios between
quired for a youth to reach the adult wage. In
age groups remained about the same. 17
the United Kingdom, youth start at about one-
In another study, Conditions of Life and Em-
third of the adult wage; it takes six years to
ployment of Young Workers,18 average monthly
reach the adult wage level. Although rates are
earnings in 1964 for youth were as follows:
provided in the French scheme for 14-15 year
15-19 age group, 419 francs; 20-24 age group,
olds, school attendance is required to 16. As
541; both age groups together, 488 francs. Av-
adult wages are paid at 18, youth rates are
erage earnings for all ages were 872 francs,
effectively limited to 16 and 17 year olds.
about double that for youth. Youth earn sub-
The statutory minimum wage rates for youth
are set as a percentage of SMIG rates for adults
stantially less than adult workers-undoubtedly
as follows: 50 percent at age 14, 60 percent at
in part due to the abatements in rates under
age 15, 70 percent at age 16 and 80 percent at
SMIG and under collective bargaining.
age 18.
The wages of far more youth are affected by
Conclusions of French experience
labor-management contracts than by SMIG. Ex-
cerpts are given from contracts in a variety of
In the absence of more complete and current
industries in appendix III. Some industries fol-
statistics and other pertinent information, an
low the SMIG pattern quite closely; others have
evaluation of the usefulness of the youth rate
modifications. Where piece rates are in effect
scheme must be based on plausible rather than
and youth are assigned to adult jobs, young
completely verifiable facts. Compared with its
workers will be paid as adults (textiles, baby
adult unemployment rate France ranks rather
buggies). Some contracts provide that if youths
high among the nations which have serious
have "professional" training they will be paid
youth unemployment. Contributing causes in-
FORD
144
clude: sheer numbers, the backwardness of
Canadians have adopted at both levels of gov-
youth services-vocational training, counsell-
ernment a lower schedule of minimum wages
ing, career guidance, placement-the interfer-
for young people.
ence of military conscription, attitudes of em-
Unemployment has been rising in recent
ployers toward youth, rapid changes in the
years. Not only is the rate higher, but the ex-
structure and distribution of industry, and
tent of both long-term unemployment and un-
changing technology.
deremployment among youth is more pro-
If the lower rates for youth did not exist,
nounced. The long-term unemployment rate of
youth unemployment would be even more seri-
the 14-19 age group is approximately double
ous. France demonstrates that more is involved
that of the 25-44 age group. 19 Underemploy-
in achieving full employment than cheapness of
ment is serious too, but exact figures delineating
youth labor. The one big difference between
voluntary from involuntary underemployment
France and Germany, is the apprenticeship
are not available. Female unemployment in
schemes which are several times larger in Ger-
Canada is lower in all age categories.
many than in France. In the United Kingdom
Although unemployment among young people
and Germany, youth can choose security as ap-
is high relative to adults, some Canadians do
prentices even though these schemes may be de-
not consider the problem urgent. Canadians
ficient to prepare him for modern technology.
think that the present rates indicate the normal
France plans an educational reform which may
restiveness of young people in finding their
therefore prepare her youth for modern econ-
way-slowly and fitfully-into the world of
omy. But while she is trying to realize these
work. Indicating that necessity and deter-
visions, her youth are suffering burdensome un-
mination are useful prods to successful job
employment and frustration.
seeking, one official noted that young workers
who marry early are seldom unemployed.
The Canadian experience
The Canadians are concerned very much
about student unemployment. This concern is
Many similarities exist between the culture
based upon the particular educational structure
and economy of Canada and the United States.
in Canada: (1) Canadian Colleges have a 5-
Both countries have high standards of living,
month summer vacation, from April to Septem-
unions that are linked closely, and similar edu-
ber-thus the students are on the labor market
cational systems, labor training and apprentice-
about half the year, and (2) the fantastic in-
ship programs, labor laws, and unemployment
crease in college enrollment, much of the influx
rates. In recent years Canada has had slightly
is youth from lower or middle income homes
more unemployment.
who must support themselves. In 1958-59 there
There are differences too. Canada has no ra-
were 94,994 college students; in 1967-68 there
cial or ghetto problem if one excepts the rather
were 305,000 or a yearly rate of increase of 12
dissimilar and much smaller problem of the In-
to 15 percent. A national campaign, similar to
dian. Canadian cities are not as large, SO urban
our Youth Opportunity Campaign, financed by
decay is not so serious; nor are homes far from
the Federal Government and calling on coopera-
new industries. Canada has no compulsory mili-
tion of business, is underway. The Canadian
tary service to absorb part of its youth man-
Congress of Labor (CCL) has no youth section
power. Finally, in labor and manpower ques-
and the labor movement has given little atten-
tions the provinces are far more important in
tion to this problem. The one active and con-
relation to the Federal Government than our
cerned group seems to be the Jeunesse Ouvriere
States are to our Federal Government.
Catholique (JOC), the youth section of the
Both countries have a statutory minimum
Catholic trade union movement.
wage system at both State or Provincial and
Federal levels. In the United States the Federal
The system of lower minimum rates for youth
minimum wage is predominant; in Canada the
reverse is true. Unlike the United States the
A system of minimum wages under law is in
i
FORD
CRALD
145
effect in all the provinces and in the Federal
youth less than adults. An official of the Minis-
jurisdiction. Under these laws there is in all
try of Labour of British Columbia in a letter to
cases a schedule of lower rates for young work-
the author said: "It should be pointed out that
ers, students, learners or for certain categories
in affluent times such as are being experienced
such as newsboys and messenger. A summary
at present, minimum wage rates do not have
of these rates in comparison to adult minimum
much effect since employers find they have to
rates is given in appendix IV.
pay more than those rates in order to obtain
Unlike the United States, the proportion of
employees."
workers under the Federal jurisdiction, 600,000
All provincial officials interviewed indicated
or less than 10 percent of the labor force, is
that youth rates are useful in counteracting un-
relatively small. In the Federal jurisdiction, the
employment and in introducing young people
reductions only apply to those under 17 years of
into working life. In a letter submitting data
age and to industries in which child labor laws
for this study, Laureat Beaulieu, member of the
restrict participation. Because most people
Canadian Commission for Minimum Wages,
leave school at age 16, there is in effect only a
said: "I would rely on the information provided
one-year application. As a result Federal
by our own inspectors to the effect that in the
officials estimate that not more than 3,000 youth
majority of establishments where youth under
earn rates paid youth or leat ners and students.
18 were hired, it was mostly due to the differ-
The differential of only 25 cents (the adult rate
ences in rates."
is $1.25, youth $1) would have little impact
None of the Provincial officials could supply
in any case. In view of these factors, one can
statistical evidence about the effect of the youth
say that the youth rates under the Federal ju-
rates. These officials did think the rates were
risdiction have little significance.
helpful, except in areas and occupations where
The youth rate systems in the provinces have
the labor market was tight and where employ-
a varied history and structure. Some date back
ers were perfectly willing to pay the full adult
several decades: British Columbia to 1919 oth-
wages, even when these were substantially
ers, very recent; and Newfoundland to 1968-
above the adult minimums.
too recent to evaluate its effectiveness. The pur-
In the United States the minimum wage of
pose of the youth rates varies but all rationales,
$1.60 is about 56 percent of average hourly
whether verbal or written, have a common
earnings; in Canada the differences are greater.
theme. An official of the Saskatchewan Depart-
For a 40 hour week, typical weekly earnings in
ment of Labor suggested: "to encourage and
January 1969 ranged from a low of $60.62 in
integrate the young person, the student and the
personal services to a high of $127.82 in trans-
inexperienced into the labor force."
portation. Consequently, employers may hire
Unlike most apprenticeship schemes, the
far below average earnings without resorting to
rates in the provinces and in the Federal juris-
youth rates.
diction are given in absolute terms rather than
Sectors in which youth rates were imple-
as percentages of adult rates. There are no
mented included: service trades, retail stores,
steps by age. The differentials are not large,
hotels and restaurants, rural factories such as
usually about 20 cents under the minimum rate
those making wooden articles, textiles, and clo-
for adults; some instances are as great as 40
thing.
cents and one as small as 5 cents. The common
age for attaining the adult rate is 18; in Sas-
Disadvantages and criticisms of Canadian youth
katchewan it is 17. Thus youth rates exist
rate system
within rather narrow limits-both as to amount
and as to duration. Typically a youth would
In this study, government, labor, and man-
work below the adult minimums for about a
agement officials were queried about the possi-
year. In some areas and occupations the demand
ble unfavorable side-effects of the youth rate
for labor is such that employers do not offer
system. Nearly all the government officials—
FORD
146
both Federal and Provincial-said they could
mums and the rather large difference between
observe no abuses or disadvantages, though
the latter and average earnings. The short span
some reported criticisms by unionists and oth-
in which they would apply-between the school
ers. In Quebec and Nova Scotia, the officials
leaving age and the incidence of the adult wage
said the lower rates for youth might cause some
-further limits their impact.
displacement of older workers or family heads
The schemes for learners, youths, appren-
in favor of youth. A number remarked that the
tices, and students undoubtedly help ease
youth might be laid off when he reached the
young people into the labor market. Unless ac-
adult wage.
companied with a general plan affecting educa-
The attitude of trade union leaders range
tion, vocational guidance, training, mobility and
from negative to passive. In general those inter-
other factors, the youth rates, taken alone, do
viewed doubted that the youth rates have any
not play a major role in youth employment in
usefulness in introducing youth into working
Canada.
life. Some mentioned that the lower youth rates
might pull down the general level of pay in un-
West Germany
organized trades. Officials of the Canadian Con-
gress of Labor (CCL) and of the Ontario Fed-
Unemployment among young people of West
eration of Labor thought the system would only
Germany is SO low as to be negligible; all age
assist youth in finding jobs in the service and
groups have low rates of unemployment.
marginally profitable industries. The CCL has
Labor market data for May 31, 1969 showed
passed no resolutions on the subject but officials
the unemployment rate as 0.6 percent-a
interviewed were personally against the
total of 123,000 jobless, while there were 800,-
scheme. According to Labor Ministry officials in
000 registered job vacancies. This report
Quebec, the Young Catholic Workers (JOC) ap-
showed a total of 4,554 unemployed below the
proved the adoption of the scheme in that prov-
age of 20, barely 3.7 percent of the total jobless.
ince in 1965 but continued to criticize the level
Duration of unemployment is not a problem
of the youth and adult minimums. When asked
either. A report from the Federal Employment
whether youth should receive less pay than an
Service for September 1968 showed that 65 per-
adult for work of equal value, trade unions and
cent of the male and 61 percent of the female
unemployed under 20 years of age had been un-
others usually answer "no." Most assumed,
employed for less than a month. Consisting al-
however, that in general youth do not perform
most entirely of frictional unemployment or the
work of equal value to an adult because youth
unemployables, unemployment in West Ger-
lack training, experience, and the disciplines of
many approaches the irreducible minimum. The
working steadily and effectively.
above data are based on registrations rather
Conclusions of Canadian experience
than a labor force survey, SO it does not account
for hidden unemployment. Officials, however,
It is difficult to measure the effectiveness of
believe hidden unemployment is very limited.
the system of youth rates in Canada when no
Germany has effective machinery for chan-
statistics are available on the number of youth
neling youth into the working life. As in the
working under them.
United Kingdom, counselling is well provided
No one in Canada from whom information
for. About 84 percent of all school graduates
was obtained in this study thought that the
were assisted by the government-sponsored
youth rate system was vital in counteracting
service in 1965-66.
youth unemployment but many felt it had some
Unquestionably a major factor in the full em-
usefulness in particular occupations and labor
ployment of youth in West Germany is the ex-
markets.
tensive apprenticeship program. About 80 per-
The impact of the youth rates are limited by
cent of all German youth become apprenticed-
the relatively small difference with adult mini-
a proportion even higher than in Great Britain
FORD
STALD
147
-employment is guaranteed as well as train-
that some employers short change apprentices
ing and opportunity for future employment.
in their training while exploiting them as cheap
Approximately 1,400,000 youth are apprentices
labor. The unions have not been satisfied with
in West Germany.
legislation to eliminate these evils.
The youth rate system in West Germany
Conclusions of West German experience
West Germany has no minimum wage legisla-
The German system is more moderate than
tion but labor-management agreements have
the British and Dutch systems in the amount of
the practical effect of setting minimum wages.
the abatements in youth earnings and in their
The negotiations establish regional industry-
duration. The lower rates seem to be tailored to
wide wages and working conditions. A review
compensate for the genuine lower productivity
of selected collective agreements in major in-
of youth labor more than the other systems, and
dustrial sectors shows that as a general rule
to equalize the attractiveness of adult and youth
"standard rates"-that is adult rates-are paid
labor in the marketplace.
at age 21 for blue-collar workers and at 25 for
Does the youth rate system serve any
white-collar workers. Younger workers have re-
purpose? Probably not with the present heavy
duced rates graduated accor ling to age. How-
demand for labor. When the demand for labor
ever, variations by industry exist; for example,
was less, the 30 percent differential for youth
workers under 16 are paid 60 percent of adult
labor helped ease young workers into jobs.
wages in the metal industry and 70 percent in
the chemical industry. In food processing, youth
The Netherlands
wages amount to 80-90 percent of the adult
wage and in retail trade, 75 percent.
The Netherlands is a good example of a small
According to Federal Labor Ministry
nation determined to maintain full employment
officials, the youth rates were meant to reflect
for adults and youth. Close labor-management
lower efficiency and productivity of the inexpe-
cooperation made possible a high degree of SO-
rienced young workers and the step increases
cial and economic policy coordination. Wage re-
by age to compensate for their gradual im-
straint, coupled with a high investment rate,
provement in skill and efficiency. The lower
made possible post-war reconstruction and in-
rates for youth are not seen as a tool for coun-
dustrial expansion. The government has fol-
teracting unemployment.
lowed an active labor market policy to stimulate
Surveys of earnings of adults and youth show
employment by channeling new industries to
a remarkable correlation with the rate system.
areas of labor surplus and by relocation of
In a survey by the Federal Statistical Office in
workers to areas of high demand. Standby pub-
1962, average hourly earnings for male workers
lic works absorbed much of the redundant
over age 18 were reported to be DM 3.57; for
labor.
male workers under 18, DM 2.58-a differ-
These policies have resulted in rather full em-
ential of 30 percent. Average hourly earnings of
ployment throughout the post-war period al-
female workers over age 18 were DM 2.62;
though both youth and adult employment have
those under 18, DM 1.83-also a differential of
been affected somewhat by the business cycle.
30 percent.
At times there has been concern about the level
A very large part of youth who work for less
of youth joblessness. In 1967 and 1968, youth
than adult rates are in the apprenticeship pro-
unemployment, reaching a peak of 4.2 percent
gram. Youth are normally apprenticed for 3 to
in January 1968, was higher than that for
3.5 years, beginning at about one-third the
adults. In recent months youth unemployment
adult wage rate. The employer is supposed to
has tended to be lower than that for adults. For
provide training and observe child protective
example, in April 1969 adult unemployment
legislation. The trade unions often have charged
was 1.4 percent; youth unemployment, 0.9 per-
FORD
148
cent. At times youth unemployment has been
not available, those interviewed believe that
high in the building trades because wages are
the contract rates are followed closely by
relatively high in that occupation and attract
employers. Holland has the Germanic tradition
more youth than can be absorbed.
of discipline and control of the young by their
elders, although the strong revolts of urban
Youth rate system in the Netherlands
youth in recent years may begin to change this
practice. Unquestionably, the justification for
The Netherlands first adopted a minimum
the lower rates for youth is based in part on the
wage system in 1966, but it does not provide for
concept of "social need". As in other countries,
youth rates. Youth rates are established under
however, youths not only are less skilled and
collective bargaining for each branch of indus-
experienced, but also are covered by protective
try. Unlike the United Kingdom, these rates are
child legislation and must be trained.
equal for male and female. As in the United
Kingdom, they tend to follow the rates set for
Conclusions of experience in the Netherlands
apprenticeships. The rates normally begin at
about 25 to 30 percent of adult rates at age 14
Although there are certain inherent liabilities
and reach 100 percent of adult earnings at age
to hiring youth there is little doubt that the
23. At age 16 the rates are usually at about 40
employer obtains youth labor at bargain rates.
percent and at age 20 about 80 percent of adult
That this experience aids in youths' introduc-
rates. Some contracts pay the adult rate at ages
tion to the world of work is without question.
21 or 22 for some categories of workers, though
An official of the Social and Economic Council
officials report no general tendency to lower the
indicated there was active competition for
age for the achievement of the adult rate. Be-
youth labor. The newspapers are full of glamor-
cause youths now are required to attend school
ous ads, and firms carry on active recruitment
to age 16, few youth work below the 40 percent
campaigns in the schools. Youth are in demand
level.
but the extent to which lower rates are the
Although earnings for various age groups are
magnet is not clear.
FOOTNOTES
1 The terms "youth" and "teenagers" are used inter-
National Minimum Wage, An Inquiry. (London,
changeably and include all 16-19 year olds, unless other-
HMSO, 1969.)
wise stated.
C. W. Guillebaud, The Wages Council System in
2 Department of Education and Science. Statistics of
Great Britain. (London, HMSO, 1962) ; and Depart-
Education Schools (London, HMSO, 1967), p. 77. See
ment of Employment and Productivity, Wages Coun-
also Joseph S. Zeisel "Comparison of British and U.S.
cils. (London.)
Unemployment Rates," Monthly Labor Review (May
10 Confederation of British Industry, Payment of
1962), pp. 489-501.
Adult Rate of Wage (1969) ; Department of Employ-
ment and Productivity, Employment Productivity
a Roger Gregoire, Vocational Education. Organization
Gazette (April, 1969) Department of Productivity,
for Economic Co-Operation and Development (Paris,
The Factories Act of 1961 (London, HMSO, 1962).
1967), p. 82.
11 Employment and Productivity Gazette (London,
4 Quoted in ibid., p. 84-85.
February 1969), p. 123 and (May 1969), p. 140.
'Ministry of Labour, Industrial Training Act. (Lon-
Marie-Therese Join-Lambert. "Approche Statis-
don, 1964) ; Department of Employment and Productiv-
tique du Probleme de l'emploi des Jeunes", Recherche
ity, Central Training Council. Third Report to the Sec-
Sociale (Paris, March-April 1969).
retary of State (London, 1969) ; The Schools Council,
Society and the Young School Leaver, Working Paper
13 Etude Sur Le Chomage Des Jeunes Allocataires Du
No. 11. (London, 1967).
Regime D'Assurance-Chomage, Bulletin de Liaison,
UNEDIC (Paris, December 1967).
Gregoire, op. cit., p. 37.
'Ministry of Labour, Central Youth Employment
14 Alise of Confederation Francaise Democratique Du
Executive, The Youth Employment Service (London,
Travail (CFDT), Dossier Situation de L'Emploi Des
HMSO, 1969).
Jeunes (Paris, March 1968).
FORD
'Department of Employment and Productivity. A
"Join-Lambert, op. cit.
149
"L'Union Nationale des Associations Familiales.
Table 10.3. Unemployment rates in the United Kingdom
L'Emploi Des Jeunes (Paris, 1967.)
17 Institut National de la Statistique et des Etudes
Unemployment rate
Date
Youth-adult
Economiques, Etudes et Conjuncture (July 1966), pp.
ratio
All ages
15-19
25 and over
14 and 34.
18 Institut National d'Etudes Demographiques. Con-
April 1961
1.7
2.3
1.6
1.44
April 1961
1.3
.9
1.4
.64
ditions de Vie et D'Emploi des Jeunes Traveilleurs
July 1956
1.1
1.1
1.1
1.00
January 1967
2.2
2.6
2.1
1.24
(Presses Universitaires de France, 1968), p. 24.
July 1967
2.0
2.2
2.0
1.10
January 1968
2.6
2.6
2.5
1.04
19 Dominon Bureau Statistics, Unemployment in Can-
July 1968
2.2
2.0
2.2
.91
January 1969
2.5
2.3
2.5
.92
ada (Ottawa, 1968), p. 23.
20 Letter to the Author.
Source: First line from census data, all others from registrations as employment
service offices.
11 Dominion Bureau of Statistics, Employment and
Average Weekly Wages and Salaries (Ottawa, 1969),
p. 8.
Table 10.4. Unemployment and vacancies for 15-18 year
old youth, April 1968 and 1969, United Kingdom
Boys
Girls
Total
Date
Table 10.1. Unemployment rates and the youth-adult
Unemployed
Vacancies
Unemployed
Vacancies
Unemployed
Vacancies
unemployment ratio for selected countries
April 1969
17,955
43,581
8,985
53,679
26,940
97,260
April 1968
17,108
42,357
10,301
50,291
27,409
92,658
Unemployment
Youth
Youth-adult
rate,
unemployment
unemployment
Country
all ages
rate
ratio 1
Source: "Monthly Statement on the Employment Situation for Young Persons,"
Department of Employment and Productivity, Mid-April 1969.
1960-64
1967-68
1960-64
1967-68
1960-64
1967-68
Germany (1961-67)
40.3
1.1
'0.3
1.1
1.0
1.0
Table 10.5. Unemployment rates in France for selected
Canada (1962-66)
6.9
4.0
14.4
9.7
2.4
2.6
Netherlands (1960)
0.9
1.4
1.8
age groups and year
United Kingdom
$1.3
12.0
'0.9
$2.2
'0.6
1.1
(1961-67)
1.7
'2,3
41.4
Sweden (1964-67)
1.7
2.6
3.9
6.1
2.6
2.9
Unemployment rate
Youth-adult
France (1960)
2.1
6.6
4.4
Date
ratio 14-19/
Belgium (1960)
2.5
4.0
1.7
25 and over
Italy (1961-67)
3.4
3.5
9.3
11.4
4.9
5.7
All ages
14-19
25 and over
United States (1960-68)
5.5
3.6
14.7
12.7
3.3
5.5
October 1960
2.1
6.6
1.5
4.40
1 Ratio of Youth unemployment rate to adult unemployment rate for adults 25 and
October 1962
2.2
6.5
1.7
3.82
over. Data from labor force surveys except as noted. Data not strictly comparible
October 1964
2.0
6.3
1.4
4.50
amoung countries.
2 Ostry, Sylvia, Unemployment in Canada, 1968, males only, ratio: youth/all ages.
# Labor Ministry data from unemployment insurance records.
4 Census data for 1961.
& Youth unemployment data relate to 16-19 year-olds.
Table 10.6. Population of 15-24 year olds in France,
selected years
Table 10.2. Number of apprentices and labor force in
five countries
Numbers
Percentage
Year
(millions)
of total
population
Number of
Country
Labor force
Apprentices
apprentices
(thousands)
(thousands)
per thousand
1775
4.5
18.0
in labor force
1886
6.5
17.0
1926
6.8
16.9
1962
6.2
12.7
Canada
8,061
45
5.6
1965
7.0
14.3
France
19,995
350
17.5
1967
7.7
15.5
West Germany
26,262
1,400
53.3
1970 (est)
8.3
16.7
United Kingdom
24,770
912
36.8
United States
82,270
240
2.9
Source: P. Clere. "Croissance du chomage chez les Jeunes?" Economie et
Humanisme, January-February, 1969.
Source: Labor departments of the various countries.
FORD
150
Table 10.7. Distribution of 15-24 year olds in France by
Table 10.8. Unemployment rates-Canada 12 Month
activity, 1962 and 1968
averages in percentages
Classification
1962
1968
Age group
1966
1967
1968
In school
1,940,000
2,900,000
All ages
3.6
4.1
4.8
Military service
530,000
300,000
14-19
8.2
9.3
10.8
Apprentices
360,000
350,000
20-24
4.2
5.0
6.3
Unemployed
57,000
170,000
Employed
2,600,000
3,500,000
Neither working nor in school
720,000
740,000
Source: Dominion Bureau of Statistics, Special Surveys Division, Labor Force
Surveys (Ottawa, 1968).
Source: 1962 and 1968 Census Data.
ALD FORD
151
APPENDIX A
Youth rates of pay in the agreement between the National Union of
Railwaymen and the British Railways Board. (March 1969). No rate was
given for nonapprenticed males.
Rates of Pay
The pay structure to recognize the introduction of these features in Stage I is:-
Adult Male Staff
Railway Shopmen Category 1
260/-
Railway Shopmen Category 2
270/-
Railway Shopmen Category 3
280/-
Railway Shopmen Category 4
300/-
(London Allowance 18/- per week)
Apprentices
Apprentices will continue to receive the percentage of the skilled (Category 4)
rate (300/-) on the basis agreed in R.Sh.N.C. Min. No. 1,270-16.1.58, namely:-
Percentage of
New rate
Age
Category 4 rate
of pay
15
27½
82/6
16
35
105/-
17
421/2
127/6
18
50
150/-
19
60
180/-
20
70
210/-
(London Allowance 9/- per week)
Adult Female Staff
A revised pay structure for Adult Female Workshop Staff engaged on work
appropriate to women, will be:-
Railway Shopwoman Category 1
205/-
Railway Shopwoman Category 2
215/-
Railway Shopwoman Category 3
225/-
(London Allowance 18/- per week)
Section VI, page 23 gives the Category definitions and Assimilation Chart.
Junior Female Staff
The rates of pay of Junier Female Workshop Staff will continue to be calculated
on the basis of a percentage of the highest Adult Female rate of pay (225/-),
namely:-
Percentage of
Shopwoman's
Category 3
New rate
Age
rate of pay
of pay
15
35
79/-
16
45
101/6
17
55
124/-
18
671/2
152/-
19
77½
174/6
20
87½
197/-
(London Allowance 9/- per week)
FORD
your
152
Example of a Wage Order negotiated in the retail food industry and
approved by the Ministry of Labour. These rates are minimum rates en-
forceable by the Labour Inspectorate.
1967 No. 745. Wages Councils
Column 1
Column 2
London area
Provincial A area
Provincial B area
per week
per week
per week
Male
Female
Male
Female
Male
Female
S.
d.
S.
d.
S.
d.
S.
d.
S.
d.
S. d.
Clerk grade I, aged 23 years or over
230 0
174 6
222 6
168 0
208 6
156 6
Clerk grade I, age under 23 years, clerk grade II, shop
assistant. stockman or orderman, canvasser, van sales-
man, cashier or central warehouse worker:
22 years or over
224 0
170 0
216 6
163 6
202 6
152 0
206 0
157 6
200 0
150 6
186 0
140 6
21 and under 22 years
20 and under 21 years
171 0
133 6
166 0
126 6
153 6
119 6
19 and under 20 years
160 6
127 6
155 6
120 6
143 0
113 6
18 and under 19 years
147 0
120 0
142 0
113 0
130 6
106 0
17 and under 18 years
121 0
99 6
115 0
92 6
106 6
86 0
16 and under 17 years
113 0
94 0
107 0
87 0
99 6
80 6
under 16 years
105 6
88 0
100 6
81 0
93 0
74
6
All other workers (other than transport worke
22 years or over
218 0
164 0
210 0
157 0
200 6
149 0
138 6
21 and under 22 years
204 0
155 6
198 0
148 6
184 0
20 and under 21 years
170 0
132 6
165 0
125 6
152 6
118 6
19 and under 20 years
159 6
126 6
154 6
119 6
142 0
112 6
18 and under 19 years
146 0
119 0
141 0
112 0
129 6
105 0
17 and under 18 years
120 0
98 6
114 0
91 6
105 6
85 0
16 and under 17 years
112 0
93 0
106 0
86 0
98 6
79 6
under 16 years
104 6
87 0
99 6
80 0
92 0
73
6
Youth rates as shown in the Wage Order negotiated in the Wages
Council in the Aerated Waters Industry, 1968:
FEMALE WORKERS-GENERAL MINIMUM TIME RATES
The general minimum time rates applicable to all female workers (other than
driver-salesmen, delivery workers and mates) are as follows:-
Per week of
42½ hours
Age
S.
d.
19 years or over
155
0
18 and under 19 years
130
0
17 and under 18 years
115
6
16 and under 17 years
96
6
under 16 years
80
6
MALE WORKERS-GENERAL MINIMUM TIME RATES
The general minimum time rates applicable to all male workers (other than
driver-salesmen, delivery workers and mates) are as follows:-
Per week of
42½ hours
Age
S.
d.
21 years or over
210
0
20 and under 21 years
171
6
19 and under 20 years
155
0
18 and under 19 years
136
0
17 and under 18 years
115
6
FORD
16 and under 17 years
96
6
under 16 years
80
6
153
Youth rates as shown in the Wage Order negotiated in the Wages
Council for the shirtmaking industry, 1966:
ALL OTHER MALE WORKERS BEING AGED
Age
5
1
21 years or over
20 and under 21 years
4
3½
19 and under 20 years
s
11
18 and under 19 years
s
6½
17 and under 18 years
3
2½
16 and under 17 years
2
9 %
2
5
under 16 years
Example of youth rates in 1968 contract between the General Dis-
tributive Workers and the Retail Co-operative Movement. Figures are in
shillings. Above the age of 21 bonuses are given based on average weekly
sales, ranging from 12 to 50 shillings a week. Note the skills required
for butchery assistants, and their abatement in earnings.
Part I.-WEEKLY RATES OF WAGES
Clause (a) MALE SHOP ASSISTANTS-ALL DEPARTMENTS
(except Hairdressers and Cafe Workers) AND WAREHOUSE WORKERS
15
16
17
18
19
20
21
Age
Metropolitan
121/6
132/-
149/6
177/-
194/6
210/6
258/-
Provincial "A"
116/-
126/6
144/-
171/6
189/-
205/-
245/6
Provincial "B"
114/-
124/6
142/-
169/6
187/-
203/-
236/-
SKILLED BUTCHERY ASSISTANTS
The following rates of wages shall apply to a skilled Butchery Assistant who has
(a) served for three years as an indentured Apprentice in the Retail Meat Trade; or
(b) passed the Craftsman's Certificate Examination or the Meat Trades Diploma Ex-
amination of the Institute of Meat or an examination of a body of comparable standing
in the same subjects which the National Joint Apprenticeship Council for the Retail
Meat Trade shall consider to be of the same standard. This Council has recognized the
Co-operative Education Department Courses, therefore, these rates will apply to skilled
Butchery Assistants who have succeeded in gaining the Co-operative certificate.
Age
18
19
20
21
Metropolitan
183/6
201/6
221/-
273/6
Provincial "A"
177/-
195/-
213/6
258/6
Provincial "B'
172/6
190/6
200/-
249/6
Clause (b) FEMALE SHOP ASSISTANTS-ALL DEPARTMENTS
(except Hairdressers and Cafe Workers)
Age
15
16
17
18
19
20
21
Metropolitan
102/6
114/6
127/-
144/-
157/-
169/-
191/-
Provincial "A"
97/-
109/-
121/6
138/6
151/6
163/6
181/6
Provincial "B"
95/-
107/-
119/6
136/6
149/6
161/6
176/6
Clause (h) MALE PACKERS, PORTERS, CLEANERS, LIFT ATTENDANTS, AND
CELLARMEN
Age
15
16
17
18
19
20
21
FORD
Metropolitan
121/6
132/-
149/6
177/-
194/6
240/6
252/-
Provincial "A"
116/-
126/6
144/-
171/6
189/-
205/-
239/6
Provincial "B"
114/-
124/6
142/-
169/6
187/-
203/-
230/6
154
Clause (I) FEMALE PACKERS, CLEANERS, LIFT ATTENDANTS, AND
WAREHOUSE WORKERS
Age
15
16
17
18
19
20
21
Metropolitan
102/6
114/6
127/-
144/-
157/-
169/-
185/6
Provincial "A"
97/-
109/-
121/6
138/6
151/6
163/6
176/-
Provincial "B"
95/-
107/-
119/6
136/6
149/6
161/6
171/-
The examples below from the rubber and cement industries provide
youth scales but stipulate that those who do adult's work will be paid
adult rates. The contract from the rubber industry has the unusual feature
of giving separate scales by age for bonuses for shift and night work.
Rubber Manufacturing Industry, 1968
PERCENTAGE SCALE OF LABOUR RATES FOR YOUTHS
YOUTHS' LABOUR RATES.
i.e., Percentage of basic hourly
rate for able-bodied adult male
general labourers.
Age
Per Hour
Years
(percent)
15
45
16
50
17
55
18
65
19
75
20
90
1. In ascertaining the actual wages rates for youths, the percentage calculations will
be taken to the nearest 1/10th of 1d higher.
2. Youths who do adults' full work will be paid adults' rates.
3. See rule 8 (v and vi) regarding youths employed on rotating shifts.
Cement Manufacturing Industry, 1968
Clause 3: Minimum Weekly Wages
(a) The minimum basic weekly wages payable to all workers to whom this Agree-
ment applies shall be as follows:-
Men & Youths
Women & Girls
Age Group
Min. Wkly Wage
Min. Wkly Wage
21 years and over
£13 0 0
£9 15 0
20 years
£11 10 0
£9 0 0
19 years
£10 5 0
£8 10 0
18 years
£9 5 0
£7 15 0
17 years
£7 10 0
£6 15 0
16 years
£6 10 0
£6 0 0
15 years
£5 10 0
£5 5 0
Clause 4: Factory Wage Negotiations—
Subject to Clause 3 above, the wage rates and systems of payment for all workers,
including earnings for skill, responsibility and productivity shall be determined at
local level and any increases made shall relate to increases in productivity or efficiency
or to changes in job evaluation or similar assessments.
Juveniles employed on recognized adult work shall be paid as adults.
FORD
155
Youth rates and apprentices rates in England and Scotland negotiated
in the National Joint Council for the Building Industry, 1967
(1) Craftsmen and Laborers
Rate per Hour
London, Scotland, and
Liverpool District Grade A
Craftsmen
7s. 9d.
7s. 7½d.
Labourers
6s. 7½d
6s. 6d.
(3) Young Male Labourers
Rate per hour
Percent of
London, Scotland, and
Age
Labourer's rate
Liverpool District Grade A
15
33½
2s. 2½d.
2s. 2d.
16
45
3s. Od.
2s. 11½d.
17
66%
4s. 5d.
4s. 4d.
18
100
6s. 7½d
6s. 6d.
(4) Apprentices
A. England and Wales
Rate per hour
Percent of
London and
Age
Craftsman's rate
Liverpool District Grade A
15
25
1s. 11½d/2d
1s. 11d.
16
33½
2s. 7d.
2s. 61/2d.
17
50
3s. 10½d.
3s. 10d.
18
62½
4s. 10½d
4s. 9½d.
19
75
5s. 10d.
5s. 9d.
20
87½
6s. 9½d
6s. 8½d.
B. Scotland
(a) Apprenticeships entered into prior to 1st June, 1965
Percent
Apprenticeship
of Craftsman's
Rate per hour
year
rate
1st
25
1s. 11d.
2d
331/3
2s. 61/2d.
3d
50
3s. 10d.
4th
66%
5s. 1d.
5th
75
5s. 9d.
(b) Apprenticeships entered into on and after 1st June, 1965.
Percent
Apprenticeship
of Craftsman's
Rate per hour
year
rate
1st
33½
2s. 6½d.
2d
50
3s. 10d.
3d
66%
5s. 1d.
4th
80
6s. 1½d.
FORD
BALD
156
APPENDIX B
Hourly and weekly earnings of youth and adults in the United Kingdom, October 1968
Men
Youths
Women (18 years
Men
Youths
Women (18 years
(21
and
and over)
Girls
(21
and
and over)
Girls
Industry group
years
boys
(under
Industry group
years
boys
(under
(hourly rates)
and
(under
18 years)
(weekly rates)
and
(under
18 years)
over)
21 years)
Full-time
Part-time
over)
21 years)
Full-time
Part-time
d.
d.
d.
d.
d.
S. d.
S. d.
S. d.
S. d.
S. d.
Food, drink and tobacco
111.4
64.4
67.4
64.6
47.9
Food. drink and tobacco
441 11
229 0
219 1
115 8
156 10
Chemicals and ali.ed industries
123.6
70.2
68.6
64.7
46.9
Chemicals and allied industries
472 11
240 5
220 1
115 11
152 6
Metal manufacture
127.5
70.9
70.4
65.0
45.6
Metal manufacture
487 8
242 4
223 6
114 3
145 8
Engineering and electrical goods
121.4
56.7
74.0
71.7
47.6
Engineering and electrical goods
461 6
193 4
236 10
127 4
154 0
Shipbuilding and marine engineering
125.7
59.6
67.9
56.5
=
Shipbuilding and marine engineering
478 7
198 1
215 1
94 2
=
Vehicles
144.6
66.0
82.9
72.6
47.8
Vehicles
528 11
222 2
266 8
127 7
151 5
Metal goods not elsewhere specified
119.6
60.7
69.3
65.3
44.3
Metal goods not elsewhere specified
459 5
209 9
218 9
115 4
141 9
Textiles
111.0
65.5
70.4
66.3
51.4
Textiles
426 7
230 4
223 5
119 4
165 4
Leather, leather goods and fur
107.5
62.7
66.0
61.6
41.6
Leather, leather goods and fur
408 4
221 11
208 5
116 0
136 9
Clothing and footwear
114.7
63.3
70.6
65.9
46.5
Clothing and footwear
405 5
213 9
219 6
130 1
149 1
Bricks, pottery. glass, cement, etc
117.2
71.7
69.6
64.5
44.3
Bricks, pottery, glass cement, etc
467 8
252 11
216 11
112 10
143 8
Timber, furniture, etc
115.8
58.0
77.3
68.4
44.1
Timber, furniture, etc
443 1
202 6
244 1
121 11
142 4
Paper, printing and publishing
140.0
64.6
71.4
67.9
42.9
Paper, printing and publishing
539 0
228 5
223 10
121 8
141 5
Other manufacturing industries
121.2
67.6
67.8
67.1
46.1
Other manufacturing industries
471
9
237
3
217 6
123 0
148
2
All manufacturing industries
123.8
62.4
71.1
67.0
47.0
All manufacturing industries
472 4
214 10
226 3
121 2
152
1
Mining and quarrying (except coal)
106.5
71.7
65.6
=
Mining and quarrying (except coal)
453 6
266 11
220 10
=
=
Construction
114.8
62.1
61.9
62.7
=
Construction
457 5
228 2
201 1
90
4
-
Gas, electricity and water
113.1
62.9
76.6
68.5
=
Gas, electricity and water
413 11
216
5
237 7
119 4
-
ansport and communication (except
Transport and communication (except
railways, etc.)
115.2
65.8
85.6
67.0
39.6
railways. etc.)
483 11
240 7
311 10
116 9
133 2
Certain miscellaneous services
104.3
50.1
59.2
57.1
Certain miscellaneous services
387 10
174 1
192 0
101 11
134 11
Public administration
95.9
61.5
67.7
60.6
Public administration
349
5
207 2
224 5
97 0
138 0
All the above, including manufacturing
All the above. including manufactur-
industries
118.9
61.4
70.8
66.2
46
ing industries
459 11
214 6
225 11
118 7
151
4
Source: Employment and Productivity Gazette, February 1969.
employing over 6 million manual workers. Administrative, technical, and clerical
These data were obtained from returns furnished by about 50,000 establishments
workers and salaried persons generally were excluded.
Median Quartiles and Deciles of Composite Hourly Earnings by Age, September 1968
As percentage of the median
Lowest
Lower
Upper
Highest
Standard error of
Sex and age
decile
quartile
Median
quartile
decile
median
Lowest
Lower
Upper
Highest
decile
quartile
quartile
decile
Shillings per hour
Percent
Shillings
Percent
FULL-TIME MALES
15-17
2.4
2.8
3.5
4.3
5.3
68.1
80.7
121.4
152.4
0.1
0.9
18-20
4.4
5.2
6.4
7.7
9.2
69.6
81.4
121.6
144.7
0.1
0.6
21-24
6.8
7.8
9.2
11.0
13.1
73.5
84.3
119.7
142.8
0.1
0.5
25-29
7.2
8.5
10.4
13.0
16.3
69.5
81.7
124.6
156.8
0.1
0.5
30-39
7.6
8.9
11.2
14.7
19.8
68.1
79.8
131.7
177.3
0.1
0.5
40-19
7.5
8.8
11.0
14.4
20.7
67.7
79.5
130.9
188.4
0.1
0.5
50-59
7.0
8.2
10.1
13.3
19.0
69.9
81.4
131.8
188.4
0.1
0.5
60-64
6.6
7.6
9.1
11.7
16.1
72.9
83.3
128.7
177.5
0.1
0.7
65 and over
4.9
6.5
8.1
10.2
14.0
60.6
80.3
126.2
172.2
0.1
1.8
FULL-TIME FEMALES
15-17
2.4
2.8
3.5
4.3
5.2
70.0
81.1
123.1
150.0
0.1
0.8
18-20
3.7
4.4
5.2
6.1
7.4
71.2
84.5
117.8
142.5
0.1
0.6
21-24
4.7
5.6
6.7
8.1
10.4
70.5
83.7
121.2
155.5
0.1
0.7
25-29
4.8
5.7
7.3
9.2
12.6
65.4
78.4
126.5
172.8
0.1
1.2
30-39
4.5
5.3
6.9
9.2
12.7
65.7
77.7
134.3
185.6
0.1
1.0
40-49
4.5
5.2
6.4
8.7
12.3
70.0
80.8
135.3
191.7
0.1
0.8
50-59
4.4
5.0
6.3
8.8
12.9
69.7
80.0
140.1
205.7
0.1
0.9
60-64
4.0
4.8
6.2
9.1
13.7
64.3
77.0
145.5
220.5
0.2
2.6
65 and over
3.8
4.4
5.7
8.0
10.3
66.4
76.7
141.0
181.0
0.2
3.5
Source: Department of Employment and Productivity.
157
APPENDIX C
Pay Schemes for Young Workers for Various Industries in France
The pay for those under 18 when productiveness is less than that of
adults is fixed in proportion to the pay rate of the same job category:
Age
Percent
14 to 15 years
50
15 to 16 years
60
16 to 17 years
70
17 to 18 years
80
However, without regard to age, those over 16 with at least 6 months
in the firm, the percent will be advanced to:
Age
Percent
16 to 17 years
80
17 to 18 years
90
Trucking and materials
Minimum rates of pay for those under 18 are fixed in relation to the
minimum rates of adult employees in the same category and step in
class of the employee, as follows:
Age
Percent
14 to 15 years
60
15 to 16 years
75
16 to 17 years
85
17 to 18 years
90
Insurance societies
The minimum pay of young under 18 will be fixed in relation to the pay
of adults in the same job category, as follows:
Age
Percent
14 to 15 years
50
15 to 16 years
60
16 to 17 years
70
17 to 18 years
80
The reductions do not apply to those with a diploma (cerified d'Apti-
tude au Profesoral del'Ensergnemens Secondaire), and those who have
passed the examination of the building trades center.
Construction-Seine region
To take account of effective work and productiveness, the guaranteed
rate for young workers is calculated as a percent of the guaranteed rate
for workers over 18 in the same job category, as follows:
At hiring in: A range of 50 percent to 80 percent for those 14-18.
&
FORD
158
After 1 year's experience-a range of 75 percent to 80 percent, for
those 15-18.
After 2 years' experience-a range of 85 percent to 90 percent for
those 16-18.
After 3 years' experience-95 percent for those 17-18.
However, by application of the principle "to equal work, equal pay,"
the work of young workers of both sexes ought to be paid by reference
to the adult occupying the same job taking into consideration their work
and their productivity.
Transport sector
When work performed by youths is equivalent in amount and quality
to the work performed by adults, the young worker will be paid according
to their job category, rank, or employment under the same conditions as
adults.
The pay to youth on piece rates when the conditions, quality, and
production are the same will be determined in the same way as pay for
adults.
When the work of youth is not equal in amount and quality, the pay
will be calculated in a percentage of the production of the adult of that
job category, rank and position.
The output will be computed as a fraction of the base. However, the
percentage of pay for the young paid on time rates should correspond,
under the rule of minimum guarantee, to the percentage of work which
they accomplish in comparison to adult workers.
Textile industry
I. The pay for young people for work ordinarily performed by adults
will be set in relation to the work they accomplish compared to that
of adults in quality and quantity.
II. In connection with the above, the minimum pay for those under
18 should not be reduced more than:
Age
Percent
14 to 15 years
50
15 to 16 years
40
16 to 17 years
30
17 to 17½ years
20
171/2 to 18 years
10
Chemical industry
In case of payment by time, the pay of young workers under 18 not
under apprenticeship should have the hourly pay for adults of the same
job category with reductions not greater than:
Age
Percent
14 to 15 years
50
15 to 16 years
60
16 to 17 years
70
&
FORD
17 to 18 years
80
159
In all cases where the young worker under 18 is paid by the job, unit
or productivity under conditions where the productivity is equal for work
normally assigned to adults, the young worker is paid on the same rates
as that of adults.
Games and baby carriages
I. The pay provisions for those under 18 doing work normally as-
signed to adults will be set in relation to the work accomplished in quality
and quantity compared to the work of adults. If quality and quantity are
equal to that of adults, the pay will also be equal.
II. In accordance with the above, the pay of those under 18 will be the
minimum for the job category, or employment to which they are
assigned, in accordance with the reduction corresponding to their age
and their seniority in the enterprise.
Pharmaceutical industry
The young workers employed in production and not under apprentice-
ship have the same guarantee of the minimum pay of the job category
where they are assigned in accordance with the reductions corresponding
to their ages and their experience in the firm.
The pay of those under 18 will not be reduced, in relation to adult
pay, more than: under 16 years-at hiring in 30 percent, after 1 year-
20 percent, 16-18 years-at hiring in 20 percent after 1 year-10 percent.
Air transport
After 18 years of age, young professional workers or specialists will be
considered as adults and receive the pay of their category on condition
they show sufficient professional capacity.
However, the young workers who, at the end of their apprenticeship,
have made progress in the firm not sufficient to justify professional
capacity in quality of production to receive an adult salary of their cate-
gory will receive a salary corresponding to their progress and for which
the rates are shown in the annex.
Metal industry
For employees with previous training: (percentage of adult earnings)
1st year-50 percent, 2d year-60 percent, 3d year-80 percent.
And for the employee with professional training:
1st year-80 percent, 2d year-90 percent.
Plastic industry
FORD
Source: Information from files of American Labor Attache in Paris.
DERALD
160
APPENDIX D
Minimum Wage Rates in Canada
(From draft of section of publication Labor Standards in Canada,
Department of Labor, Ottawa, 1968)
The minimum rates set for young workers and for students in the
various provinces are as follows:
Alberta
Workers under 18:
15 cents less than
adult rate
Students employed part-
55 cents, if under
time:
17
65 cents, if over
17
British Columbia
Bicycle-riders and foot-
50 cents
messengers employed ex-
clusively on delivery (no
age specified) :
Manitoba
Workers under 18:
$1.00
Newfoundland
Workers 16-19 years:
70 cents (males)
50 cents
(females)
Nova Scotia
Workers 14-18 years: 1
Zone I
95 cents
(males)
70 cents
(females)
Zone II
80 cents
(males)
55 cents
(females)
Ontario
Persons under 18 em-
90 cents
ployed as messengers, de-
livery boys, news vendors,
pin setters, shoe shine
boys, golf caddies or in
the professional shop at a
golf course, in a municipal
public library, or in an
1 Unless the Minimum Wage Board gives express approval, not more than 25 per-
cent of an employer's total working force may be underage employees (14-18 years).
In a hotel, restaurant, motel or tourist resort from June 15 to September 15, however,
up to 60 percent of the employees may be underage workers.
FORD
YOUR
ALD
161
Ontario-(continued) amusement or refresh-
ment booth at a fair or ex-
hibition held by an agri-
cultural association:
Students employed part-
$1.00
time (not more than 28
hours in a week), or em-
ployed from May 15 to
September 15 or during
Christmas or Easter vaca-
tions:
If student required to
90 cents during
work more than 28 hours
first month of
in a week in the period
employment
May 15-September 15:
Prince Edward
Island
Students (female) who
5 cents less than
work a minimum of 28
regular min-
hours in a week or who
imum rate
work full-time from May
15 to September 15 or dur-
ing Christmas and Easter
vacations:
Quebec
Workers under 18:
General
Zone I, $1.05
Zone II, 95 cents
Hotel trade
establishments
Zone I, 95 cents
Zone II, 90 cents
Service establishments
Zone I, 85 cents
Zone II, 80 cents
Students and messengers
80 cents
under 18 employed by mu-
nicipal corporations and
school boards:
Workers under 18 em-
Zone I, 90 cents
ployed in sawmills:
Zone II, 85 cents
Workers under 18 em-
Zone I, 95 cents
ployed in woodworking
Zone II, 90 cents
plants:
Saskatchewan
Workers under 17:
Ten cities—
95 cents
Rest of province
-90 cents
FORD
GERALD
162
Provincial minimum rates for adult workers
Establishment
Province
Factories-shops-offices
Hotels-restaurants
Newfoundland
Workers 19 and over:
Same
85c (women)
$1.10 (men)
Prince Edward Island
Men over 18:
Same
$1.10
Women:
85c, increasing to 95c on July 1, 1969.
Nova Scotia
Workers 18 and over:
Same
Men:
$1.15, Zone I
$1.05, Zone II
Women:
90c, Zone I
80c, Zone II
New Brunswick
$1
Same
Quebec
Workers 18 and over:
$1.25, Zone I
$1.05, Zone I
$1.15, Zone II
$1, Zone II
Ontario
$1.30
$1.15, increasing to $1.30 on October 1, 1969.
Manitoba
Workers 18 and over:
Same
$1.25
Saskatchewan
Workers 17 and over:
Same
$1.05, 10 cities and 5-mile radius
95¢. rest of province.
Alberta
Workers 18 and over:
Same
$1.25
British Columbia
$1.25
Same
R.FORD
is
E
CERALD
CHAPTER XI
Youth Employment and Wages in Japan
The relatively high unemployment rates for
arise not from formal minimum wage legisla-
youth in the United States have given rise to
tion, but from the "natural" development of
speculation concerning the effects of our statu-
a dual wage structure and the so-called
tory system of "undifferentiated" minimum
nenko system of permanent employment.
wages on youth unemployment. Theoretical
Nonetheless, it is reasonable to speculate that
there will be a causal relationship between
analysis leads to the conclusion that workers
youth-age wage differentials and the employ-
with low marginal productivity can command
ment of young workers in Japan.
only correspondingly low wages in the labor
The purpose of this paper is to examine
market. If employers are forced to pay such
the recent patterns and trends in Japan of
workers wages as high as those received by
unemployment and wage differentials, with
more experienced-and presumably more pro-
special emphasis on comparison between the
ductive-workers, employers will bypass the
experience of young workers and the total
less productive in favor of the more productive
work force. Efforts are made to explain the
employees. Since young workers, especially
employment experience of Japanese youth in
those who have failed to complete high
the light of labor market institutions and be-
school, are likely to be the least experienced
havior, mobility patterns, employment (in-
and least productive, theoretically it follows
cluding education and training) practices,
a minimum wage set above their low levels of
and employer-employee relations as well as
marginal productivity will lead to high rates
through an analysis of wage differentials and
of unemployment among youth.
wage-employment relationships.
In Japan, high rates of overall employment
and intense demand for new school graduates
The Japanese labor market
are accompanied by a well publicized system
The relationship between differentials in
of employment. Japanese wage rates are set
wage and unemployment rates in Japan can
at relatively low levels for new entrants to
be assessed only against the background of
the labor force and rise markedly with sen-
the traditions and recent labor market devel-
iority. These significant wage differentials
opments. Japan's labor market structure has
been discussed in detail elsewhere, and is re-
This chapter was prepared by Solomon B. Levine and
counted here only briefly.¹ The most notable
Gerald G. Somers, of the University of Wisconsin,
features are dual structure of employment in
under contract for the Bureau of Labor Statistics.
large and small enterprises, the lifetime com-
Views expressed in this study are solely the responsi-
bility of the authors.
mitment system for permanent employees of
Footnotes and tables begin on p. 177.
large firms, and the resulting FORD consequences
163
164
for the mobility of labor, hiring practices,
and retained in employment until they retire.
training policies, wages and employment.
Monetary compensation and other benefits
The dual structure of employment is seen
for those 18 and under began at about half
in the sharp contrast which exists between
the rate for these 20-24, with some differen-
large and small firms. The differences are
tial based on education, and rise steadily and
most notable in conditions of employment,
progressively with age and years of experi-
wages, bonuses and fringe benefits, and they
ence in the establishment. (See below.) The
are made possible primarily because the large
origins of these paternal relationships and
firms have adopted advanced productive
mutual loyalties are found in the traditions
techniques whereas the small firms are tech-
of family attachments in Japan and other
nically backward. The large firms also enjoy
cultural characteristics; but the nenkô sys-
the advantages of group affiliations, financial
tem became firmly entrenched only after the
connections, and favorable distributor rela-
1930's.
tionships. The advantageous status of the large
The persistence of the lifetime commit-
firms is furthered through their cost-saving
ment system, in spite of recent pressures of
relationship with smaller companies. Fre-
economic and technological change, can be
quently, the "master company" has made a
explained by its advantages for employers
direct investment in a smaller affiliate and
and employees. Whereas management obtains
controls its management. In other instances, a
a devoted and permanently committed work
subcontract relationship is established in
force, whose wages rise with experience,
which an unaffiliated smaller firm may de-
liver almost all of its output for completion
training and skill, the employee finds com-
or distribution by a larger company. In such
plete employment security, a status highly
cases, the status and success of the larger
valued in the conditions of labor surplus
enterprises are enhanced by the perpetuation
under which the system arose.
of low wages and limited welfare benefits in
However the nenkô system has distinct
the dependent smaller firms. The nature of
limitations in coverage. The smaller estab-
these differentials as related to age is dis-
lishments are unable to compete for the best
cussed in further detail later.
middle school and high school graduates, and
In spite of the prominence given, to the role
they become a refuge for older and other
of large firms and powerful combination of
workers whose productive potential makes
firms in Japan, about half of all nonagricul-
them less attractive to the large companies.
tural workers in the private sector are still
They are given no lifetime commitment, and
employed in establishments with less than 30
their mobility rates are substantially above
employees and the relatively large establish-
those of workers in the large companies.
ments, employing 500 or more workers, have
Their wages were also traditionally well
only one tenth of the total. This breakdown
below those older workers covered by the
is shown in table 11.1.
Marked differences exist between large
nenko system, although in recent years the
and small enterprises, arising because of dis-
competition for new entrants into the work
tinctions in hiring patterns, training, promo-
force has been such as to raise the beginning
tion, tenure and wage determination. In the
wages in small firms to the level of, and in
large firms, these have come to be placed
some cases even above, similar workers in
under the general heading of nenkô seidô, the
major firms. The over-all average compen-
lifetime commitment system in which wages
sation in small firms, however, remains sig-
and benefits of the employee advance prima-
nificantly below that of the large.
rily on the basis of years of service. Large
Limits to the nenkô system even in large
firms compete for the best junior and senior
companies should be noted. This sytem must
high school graduates, and these become per-
be supplemented by other arrangements
manent employees to be trained, promoted,
which permit flexibility in the expansion and
FORD
165
contraction of the work force as economic
gives to the internal labor market. Because of
and technological conditions require. In many
the restricted mobility of young workers,
large establishments a status structure of
once they have become permanent employees
employment has emerged. In addition to the
of a large firm, the company is able to make
hard core of permanent employees, tempo-
substantial investments in their training and
rary workers are added as required, and
development. There is no established occupa-
these workers are hired on the understanding
tional structure in most Japanese firms. Inex-
that they have limited tenure. Their wages
perienced new entrants, hired at relatively
and welfare payments are considerably below
low wages to become permanent workers,
those of the permanent work force. Addi-
simply progress from one task to another as
tional groups, with even lower status and
their training, newly acquired skills, and ex-
more casual attachments, are frequently uti-
perience permit. Only in the smaller estab-
lized by large companies. They include day
lishments does significant hiring take place
laborers, subcontract workers and part-time
at virtually all levels and ages. Temporary
employees. The subcontract workers may be
and contract workers, even in the large firms,
provided by an affiliated small company and
and employees in smaller establishments ex-
they may work temporarily in the master
perience relatively high turnover rates.
company or in home establishments. They are
Rather than disrupt this labor market
employed by the contractor rather than by
structure, collective bargaining has accommo-
the establishment in which they work, as in
dated itself to it. Unions have focused their
the case of temporary help services in the
attention on the permanent employees in
United States. Although these workers
large establishments, and most have sought
usually perform relatively unskilled mainte-
to strengthen the tenure-wage relationship
nance work, they are sometimes found in the
as a prime objective rather than to reduce
same jobs as the more permanently employed
the absolute differentials within the firm or
workers. However, the subcontract workers
between firms.
receive substantially lower pay than the com-
Marked labor shortages, resulting from the
panies' own employees and their compensa-
unusual economic growth of the past few
tion is even below that of most temporary
years, have joined with substantial technol-
employees. Moreover, employers in the large
ogical progress and structural shifts of in-
companies enjoy further savings because the
dustry in affecting the nenkô system. Because
subcontract workers do not receive the gener-
of the competition for labor, wage differen-
ous and comprehensive welfare payments en-
tials between large and small firms have nar-
joyed by permanent employees.
rowed. Mobility has increased, especially
Thus, the widely herald lifetime commit-
among workers in small firms and in the
ment system in Japan covers only the perma-
movement from rural areas to industrial cen-
nent employees of large firms. Since compa-
nies with fewer than 100 employees are un-
ters. Within some large firms, there has been
likely to have the nenkô system, it has been
a growth in the number of workers who are
variously estimated that between 30 and 40
outside the nenkô system, such as temporary
percent of the nonagricultural employees in
auto workers and subcontract workers in
private enterprise work under the nenko
shipbuilding. Employers in large firms have
system.2 Accordingly, wage differentials in
talked increasingly of establishing types of
Japan exist not only between large and small
job evaluation and merit-rating systems
enterprises but also between permanent em-
which tie compensation directly to occupa-
ployees of large firms and others who work
tions and skills rather than to age and length
as temporary or subcontract labor in the
of service. Despite these pressures, the basic
same firms.
structure of the nenkô system remains one of
One important consequence of the nenkô
permanent employees in large establish-
system in large firms is the significance it
ments.
FOND
166
Minimum wage legislation and administration
ceptions to the inter-enterprise agreement
procedures. In December 1942, the Minister
In light of the longstanding dualism in the
of Labor upon the recommendation of the
labor markets, the Japanese Government has
Central Wage Council set a flat minimum of
approached the fixing of minimum wages
16,000 per month for all underground coal
with considerable caution. Prior to the allied
miners. This was a rare case of an industry-
occupation of Japan, there was no legislation
wide determination, but was adopted as part
for the setting of wage minimums although
of the overall government policy to stabilize a
labor controls during World War II moved
rapidly declining industry. Still another
toward guaranteeing minimum living stand-
major instance occurred in September 1963
ards for industrial workers based on age.
with the setting of a minimum wage based
Adoption of Japan's new Constitution in
upon a union-management agreement in the
November 1946 (promulgated April 1,
cotton spinning industry. Here, a minimum
1947) under the guidance of the Occupation,
of 346 per day was established for all per-
however, signaled the government's inten-
manently employed 15-year olds and over, ex-
tion to develop a minimum wage system as
tending the collective bargaining coverage
part of a broad range of labor reforms. Arti-
from 97,000 employees in 103 enterprises to
cle 25 provided that "all people shall have the
112,000 employees in 136 enterprises.5
right to maintain the minimum st undards of
Passage of the Labor Standards Law fol-
wholesome and cultured living," and "in all
lowed almost immediately with its enabling
spheres of life, the State shall use its endeav-
provision for the fixing of minimum wages.
ors for the promotion and extension of social
In the law's original version, article 1
welfare and security, and of public health."
stated "working conditions must be that
Until after the laws was amended in 1968,
which should meet the need of the worker
the inter-enterprise agreement by far was
who lives life worthy of a human being;" and
the procedure most generally used to set min-
article 2, "the standard of working condition
imum wages. By June 1962, of the 870 mini-
fixed by this Law is minimum." The act,
mum wages that had been set, 867 derived
however, did not Specify any minimum wage
from such agreements among employers. For
rates. Rather, in article 28, it provided that
the most part, the coverage applied to work-
"when the competent office considers it neces-
ers in the small enterprises, reaching 1.9 mil-
sary it can fix minimum wages for the
lion workers in more than 116,000 enter-
worker employed in certain enterprises or in
prises by November 1962. Ninety-five per-
certain occupations," and in article 29 it
cent of these workers were covered by inter-
called for the establishment of central and
enterprise agreements, with the most numer-
local wage councils for the purpose of "inves-
ous groups in textiles, machinery manufac-
tigating matters concerning wages" before a
turing, food processing, lumber and wood, ce-
minimum wage is officially set by the compe-
ramics, and services-industries noted for
tent minister.
their large numbers of small firms. Minimum
This procedure was rarely used despite
wage coverage rose to more than 2.5 million
pressure from organized labor to bring about
workers by August 1963 and to about 3.0 mil-
the enactment of a uniform nationwide mini-
lion by February 1964 with similar predomi-
mum. Actually, not until 1959, after consi-
nance of inter-enterprise agreements and
derable debate and agitation, did the govern-
concentration in the small enterprise
ment take further legislative steps to estab-
sectors.3 In general, it appeared that employ-
lish minimum wages. One notable exception
ers only were fixing minimum wages, proba-
occurred in 1956 when a minimum wage in the
bly with the aim of regulating competition
packinghouse industry was not based upon
among themselves for increasingly scarce
an inter-enterprise agreement among the em-
labor, especially new school graduates.
ployers concerned. This technique became a
There were, however, certain notable ex-
model for other employer groups and was
FORD
CRALD
167
adopted as the chief procedural means for
tion basis with gradual extensions over increas-
setting wage minimums in the Minimum
ingly wider regions. In October 1964, the Coun-
Wages Law enacted April 15, 1959. This law
cil announced selection of 88 such industrial
remained unamended until 1968.
and occupational groups for direct fixing of
Enactment of the 1959 law came at the point
minimum wages, although it should be noted
of transition from labor surplus to labor shor-
that the proposal envisioned differential mini-
tage in the rapidly growing Japanese economy.
mums by area and "level" of enterprise. The
The new act did not specify any minimum rates
plan aimed at a broadening of coverage to about
but instead concentrated upon procedures for
5 million workers and a rise in the lowest mini-
setting them. Article 3 stiplated that "minimum
mums to above Y360 per day. In February
wages shall be fixed taking into consideration
1966, the Central Council called for rates to be
the cost of living of workers, wages of kindred
lifted to between Y410 and Y520 per day.'
workers and normal capacity of industries to
During 1966, deliberations over revising the
pay wages." Clearly, given the structure of the
1959 law intensified. Increasingly, criticism was
Japanese labor markets, differentials in mini-
leveled at the Japanese law, utilizing inter-en-
mum wages were intended. The Minister of
terprise agreements as heavily as it did, that it
Labor or the chief of a prefectural labor stand-
was not in compliance with the tripartite provi-
ards office was authorized to fix minimum
sions of Convention 26 of the ILO on the fixing
wages, following one of four methods: Recogni-
of minimum wages. By this time the Japanese
tion of an inter-enterprise agreement among
Government had indicated its intention of rati-
employers; extension of such inter-enterprise
fying the convention. Moreover, the failure to
agreements to similar workers within a speci-
move toward a uniform nationwide minimum
fied region, extension of a union-management
prompted Sohyô, Japan's largest labor federa-
collective bargaining agreement to similar
tion, to withdraw its representatives from the
workers within a specified region; and, direct
then proceeding tripartite deliberations over re-
setting for low paid workers in a specific indus-
vising the law. In May 1967, the Central Coun-
try, occupation, or region following investiga-
cil, even with the Sohyô representatives absent,
tion and deliberation of an equally tripartite
recommended abolition of the inter-enterprise
minimum wage council (established at the cen-
agreement procedures and the exclusive use of
tral and local levels).
determinations by tripartite wage councils.
Under the procedures of the 1959 law, mini-
Within a few days, the Minister of Labor sub-
mum rates rose slowly and were far from uni-
mitted to the National Diet an amendment bill
form from one wage setting to another. Begin-
to this effect. Sohyô resumed its participation in
ning in 1960-61, the minimums hovered around
the deliberations in September 1967.
Y200 per day. By June 1962, they tended to fall
The amendments to the Minimum Wages
in the Y200 to Y300 per day range, and by Feb-
Law were adopted on June 16, 1968. While the
ruary 1964 had risen to Y300 to Y400 per day.
principal change provided for primary use of
This upward trend has since continued, an occa-
sional rate reaching as high as Y600 per day.⁶
the tripartite wage councils, inter-enterprise
The heavy reliance upon inter-enterprise
agreements were permitted to continue until
agreements and the lack of uniformity in the
June 1970. The Central Council also has contin-
minimums set came under increasing criticism
ued its reexamination of the law with the aim
almost from the inception of the 1959 law. In
of proposing additional amendments. As yet,
1962, the Minister of Labor and Central Wage
however, it is too early to judge what results
Council reported their dissatisfaction with the
the 1968 revisions will produce.
results, pointing especially to the "unevenness"
Japan's experience to date with minimum
of the rates established. In its report of August
wage legislation does not indicate that the
1963, the Central Council proposed that by 1966
array of minimum rates which have been estab-
all minimum wages should be set on only an
lished have seriously affected wage structures.
industry-by-industry or occupation-by-occupa-
It may be argued indeed that the low rates set
FORD
CALD
168
and the differentials permitted may have ac-
during the first decades of the Meiji Era, nenkô
tually held back the compression of wages gen-
may also be considered a relatively new social
erated by labor market shortages. In turn, it is
innovation designed to help advance Japan's
dubious that the minimums have had any per-
"forced march" toward economic moderniza-
ceptible effect upon the unemployment level of
tion. Whatever the reasons for nenkô, the sys-
the labor force as a whole or any group within
tem has long meant a major emphasis in Japan
the labor force in particular.
upon "bringing workers up from the young" in
the modern sectors. At least until recently,
Intra-enterprise employment practices
moreover, it had strong attractions for the em-
ployer in paying relatively low wages to young
Youth-age wage differentials and a steady
single workers, in incurring low costs for work-
supply of job opportunities for young workers,
er migration, housing, and welfare, in securing
especially those entering the labor force upon
workers probably most adaptable to fast-
completion of school are sustained under the
changing technologies and industrial environ-
nenkô system of permanent employment. Al-
ments, in training workers for skills specific to
though neglecting the operations of "external"
the enterprise, and in assuring a high degree of
labor markets in the analysis of wage differen-
docility in the work force.
tials in Japan is inappropriate, the nenkô sys-
In recruiting new labor, especially workers
tem gives special prominence to the role of "in-
who are likely to become permanent employees
ternal" labor markets, particularly for workers
of an enterprise, employers usually seek new
who become "regular" employees in the large-
school graduates as the first priority. In the
scale enterprises and the government opera-
large firm, there tends to be little shopping
tions.
around for skilled workers from other firms or
The nenkô system is an idealized type of
in the open labor market, at least until the sup-
employment practice. Rarely is lifetime or ca-
ply of new school graduates is virtually ex-
reer-long tenure explicitly guaranteed. Labor
hausted. The increase. of compulsory years of
analysts have debated the real meaning of
schooling from six to nine years soon after
nenkô and are in disagreement over its origins.
World II, and the recent trend of increasing
There is wide agreement, however, that the in-
proportions of junior high graduates going on
stitution was widely implanted among modern
to high school and of high school graduates en-
firms as the result of the strict labor controls
tering institutions of higher education, have
during Japan's militaristic period of the late
made successful recruitment among the age
1930's and early 1940's, although it can be
groups (15-19) increasingly difficult. These
traced back to the 1920's and in some cases
teenagers have been the traditional sources of
much earlier for white-collar and key manual
new labor for the large firms. At the same time,
workers. The immediate post-surrender years
on the demand side, the rapid growth in indus-
of near economic chaos and almost universal
trialization, complex technical changes, and the
insecurity in Japan witnessed the entrenchment
increases in the size of firms have generated
of nenkô as the work forces of most large enter-
stiff competition among employers to recruit the
prises and government agencies formed labor
younger worker. Nenkô thrived best under con-
unions to protect their members against dis-
ditions of ample supplies of young labor, a rela-
charges, discrimination, and the ravages of in-
tively large agricultural sector, a dual economic
flation.
structure, and a less than pervasive adoption of
However, nenkô, is also compatible with tra-
modern technologies.
ditional values derived from paternalism, fam-
In its ideal form, the nenkô system provided
ilyism, and reciprocal obligations between su-
a single port of entry for permanent workers:
perior and subordinate carried over from the
Unskilled, apprentice-like jobs at the bottom of
agrarian society of Tokugawa feudalism. On
an enterprises' work hierarchy. Likewise, there
the other hand, in view of the existence of open
was one port of exit: retirement-usually at the
labor markets and independent mobile workers
age of 55. The retirement system alone assured
FORD
169
a steady supply of job opportunities for the
nenkô remains a tenacious institution that pro-
young, as long as firms maintained the age bal-
vides the employer a large degree of flexibility
ance of their work forces and enjoyed steady or
in utilizing his work force and the worker in the
growing output. In 1965, for example, among
system a large measure of career-long security.
manufacturing firms with 500 employees or
From the employers side, moreover, it is not at
more, workers not previously employed consti-
all clear that under present conditions open
tuted 70 percent of all new employees. Sixty-two
labor markets will assure greater productivity
percent were new school graduates.⁸
or lower costs. Should Japan develop alterna-
Workers who do become permanent employ-
tive means for assuring job security, the insti-
ees under nenkô enjoy a wide variety of benefits
tution might deteriorate far more rapidly than
not available in small companies of for the tem-
now seems to be the case.
porary, casual, subcontract, or part-time
If nenkô raises questions of social equity,
worker in the large enterprises. These benefits
they reside less in the realm of job opportuni-
also grow with length of service. They include
ties than in the area of income opportunities in
semi-annual bonuses (in some cases as high as 3
the later stage of the worker's career. Those
months' pay), membership in enterprise-based
who enter non-nenkô systems run greater risks
social insurance schemes, company housing at
of unemployment and underemployment and
low rentals, housing loans, medical care, recrea-
the leveling off or dropping of wage income at
tion and bathing facilities, nurseries, company
an earlier age than those in the system. Yet,
stores, discounts, dining rooms, cultural pro-
with Japan's rapid economic growth and rise in
grams, ceremonial gifts, and SO forth. Of major
youth wages, the small enterprise sectors offer
importance are generous lump-sum retirement
attractions to numerous new school graduates.
allowances and, in a growing number of cases,
Small firms with fewer than 100 employees far
monthly pensions. Upon retirement, some work-
ers may be reemployed with the firm or provided
outnumber the large, comprising 90 percent of
employment with a subsidiary company or sub-
all firms in manufacturing. These are made up
contractor.
in large measure of family concerns which
There are occasions when enterprises find it
provide considerable inducement to family
necessary even to reduce their permanent work
members to remain within the household.
forces. In such instances, the usual approach,
Their work settings contrast sharply with the
after reducing the recruitment of new school
large enterprises, often offering wide latitude in
graduates, is to call for "volunteers," often with
the pace and type of work. In the medium-size
the inducement of extra-large severance pay-
category (from 30 to 500 employees), moreover,
ments. In most cases, those who voluntarily
there has long been a tradition of worker mobil-
quit are older workers. For at least a decade
ity and the marketing of skills achieved inde-
there has been considerable controversy in
pendently on one's own. While employment in
Japan over the viability of the nenkô system
this sector entails risks, there are also chances
under conditions of rapid economic growth and
for scoring large successes and achieving a high
technological and structural change. In histori-
degree of personal freedom.9
cal perspective, however, nenkô has grown to
Thus, it is useful to emphasize that, while the
include manual as well as nonmanual workers.
nenkô system has received major attention in
As small firms get larger, moreover, there ap-
the analysis of Japanese industrial relations
pears to be a tendency for nenkô systems to set
systems, in actuality there is a wide range of
in. Modifications through use of job classifica-
employment practices in Japan. The "mix"
tion, job evaluation, merit rating, wage incen-
under conditions of rapid economic growth ap-
tives, and other techniques directly related to
pears to pose few problems in the hiring of
worker productiveness have made only minor
youth. A major outcome may be to shift em-
inroads into the system so far. Despite the re-
ployment and wage problems to older workers
cent narrowing of the age-youth differentials,
instead.
FORD
170
Youth wages and collective bargaining
Especially at the time of the "Spring Strug-
gle," youth wages receive close attention in
As a result of the postwar labor reforms, the
collective bargaining. April 1 marks the begin-
unionization of workers and union-management
ning of Japan's fiscal year; March is the month
bargaining in Japan have become firmly en-
of school graduation and, thus, for new hiring
trenched institutions.¹ At present, union mem-
commitments to be made. Therefore, in most
bership numbers about 11 million workers dis-
instances, spring has also become the time for
tributed among more than 56,000 "unit" unions
bargaining over base-ups, starting rates, and
(the closest equivalent to local unions in the
new collective bargaining agreements.
United States) 11 About 35 percent of the wage
However, wage minimums or even starting
and salary earners eligible to become union
rates for new school graduates do not tend to
members are organized. However, unionism is
take the center of the collective bargaining
found primarily in the large public and private
stage. Far more important are the general wage
enterprises. About two-thirds of the organized
increases for the enterprise union membership
workers are in enterprises that employ 500
as an entity. The reason for this is not hard to
workers or more. In firms with fewer than 30
find. As previously mentioned, enterprise-level
workers, union membership is less than 1 pe-
unions cater to their entire membership and
cent of the total. Furthermore, close to 90 per-
therefore seek to prevent major upsets in the
cent of all the unions are organized on an enter-
wage and benefit structures that apply to their
prise-basis and usually include all regular em-
respective members. Although the national
ployees, manual and nonmanual, outside of the
managerial personnel. The remaining 10 per-
labor centers have advocated the principle of
cent of the unions are made up of industrial,
equal pay for equal work and higher and uni-
craft, regional, or miscellaneous groupings.
form minimums for all workers, these issues do
Except for public workers in central govern-
not appear to be pursued as immediate demands
ment enterprises, seamen, some textile workers,
in the enterprise-level negotiations. Rather,
and a few small other groups, collective bar-
since the new starting rates have their greatest
gaining in Japan as in United States, tends to
impact in terms of their effect upon the whole
be decentralized at the enterprise or plan level.
wage curve, a principal focus is to maintain the
However, the major federations, particularly
"equity" of established wage differentials.
Sôhyô and Churitsuroren, and some' of the na-
Thus, bargaining over starting rates is essen-
tional industrial union organizations, attempt
tially an integral part of the negotiations over
to coordinate the bargaining activities of the
general base-ups. While there have been specific.
enterprise-level unions. This is most notable in
minimum wage agreements between unions and
the case of the "seasonal struggles" over annual
managements, as for example in the cotton
"base ups," or general wage increases, in the
spinning industry already cited, for the most
spring and over the amount of bonus in early
summer and year's end. However, for repre-
part these have been special cases in which the
sentatives of the central federations or national
preponderance of the workers are young and
industrial union organizations to participate di-
female.
rectly and formally in the enterprise-level nego-
With the development of the shortage of new
tiations is rare. This is also essentially true of
school graduates in recent years, the rise of ed-
employer associations. Collective bargaining
ucational levels, and the inculcation of demo-
coverage extends to about 80 percent of the or-
cratic ideas, young workers in many cases have
ganized workers and about two-thirds of all the
exerted pressure upon their unions and man-
unions, the remainder either being excluded as
agements to grant wage increases based on
civil servants by law or having failed to enter
their higher abilities and greater skills. This
negotiations. It is likely that as many as one-
pressure has been difficult to resist, especially
half the agreements contain no provisions other
with the disproportionately large increase of
than those already stipulated by law.12
young workers in the work forces of the large
171
unionized firms. The development of merit rat-
with additional assumptions of family size and
ing, job evaluation, and separate promotion
responsibilities. After 1950, when the unions
tracks for ability and for seniority in many
were placed on the defensive largely as the re-
firms has in part been a response to this pres-
sult of changes in occupation and government
sure, and in most cases has not been met by
labor policy, these wage formulas were aban-
outright union resistance.
doned or revised but were readily converted to
Yet, it is not all that clear that the young
place stress upon length of service in an enter-
workers "want theirs now." As they gain sen-
prise with annual periodical wage advances vir-
iority, they appear increasingly content with
tually assured to the permanent workers. In a
the nenkô system and with gradual change in
sense, the age-based wages were an attempt to
the enterprise wage structure. If there is dissat-
establish a uniform system of differential mini-
isfaction among the young workers regarding
mums in Japan. They gave way instead to a
their wages managements and unions probably
compartmentalized collection of enterprise-cen-
fear more the dissatisfaction of senior workers
tered wage hierarchies based mainly on length
that would be generated by too rapid flattening
of service.
of nenkô wage curves. Both parties share the
The primary concern of the enterprise unions
common interest in maintaining a delicate bal-
with the regular work forces of their respective
ance between young and old.
enterprises probably generates less than enthu-
Despite the increase in young members, it
siastic support for a nationwide system of mini-
should also be remembered that present-day
mum wage rates. In part, this accounts for the
union leadership emerged at the time of Japan's
greatest economic security. Many of the enter-
position of Dômei, Japan's second largest labor
prise union leaders today gained their positions
federation and right socialist rival of the more
by securing employment tenure for workers
radically inclined Sohyô. Dômei has been will-
who in the 1930's and World War II were re-
ing to go along with the government's policy of
cruited into large companies from small firms
differential minimums although in general it
and therefore, were not fully entitled at the
protests against the low levels that are set.
time to the benefits of the nenkô system. To
Even Sôhyó, although more vigorous in its in-
them this accomplishment was an important
sistence upon a high uniform nationwide mini-
measure of egalitarianism within the Japanese
mum, is believed to temper its demands in view
context, although founded paradoxically on
of the lack of strong support from enterprise
maintaining age and length of service differen-
union affiliates.
tials in wages and benefits.
As in the United States, it is an unsettled
Moreover, in the early years of collective bar-
question in Japan as to whether unionism on
gaining in postwar Japan, unions were by and
the whole has affected the general level of
large successful in obtaining agreements from
wages other than would be expected from labor
employers to base wages upon the needs of the
market pressures under conditions of rapid eco-
worker and his dependents. This idea has its
nomic growth. There is some evidence that
antecedents during the war as part of the sys-
wages in the large unionized enterprises are
tem of war-time labor controls, but its imple-
higher than they might have been, although
mentation has been almost entirely in the hands
even in this case managements may have sacri-
of government officials and enterprise manage-
ficed profits through the device of the nenkó
ments. Given the dire economic conditions in
system in order to assure work force stability
the years immediately following surrender, the
and employer-employee harmony over the long
new union organizations, especially in the
run. If this is so, then it is probably correct to
electrical manufacturing industry, took the
conclude that youth wages have been no more
leadership in developing an elaborate formula
affected by collective bargaining than has the
for monthly wage rates based on the estimated
whole wage structure, and, despite the shortage
living requirements of workers of different ages
of new school graduates, possibly even less SO.
FORD
172
Wage structure
prises where the nenkô systems are most firmly
entrenched. Employment in Japan rose from 39
Analysis of the history of wage differentials
to 47 million between 1955 and 1965, but non-
in Japan since the early years of the 20th Cen-
agricultural wage and salary workers grew by
tury indicates that until quite recently there has
more than 11 million in the period, for 46 to 62
been little overall narrowing by economic sec-
percent of the total labor force.¹ 14 At the same
tor, industry, region, occupation, sex, size of
time, the proportion of the labor force employed
firm, or age. 13 While these differentials have
in firms with fewer than 10 workers dropped
more or less narrowed and widened with cycli-
from over 40 percent to barely 30 percent.15
cal changes in general economic activity, their
Whereas 55 percent of the ne.v junior high
long-run persistence has been attributed largely
school graduates and 50 percent of the new sen-
to the dualism of the Japanese economy which
ior high school graduates entered small firms in
only in the 1960's has shown signs of disappear-
the mid-1950's, these figures had fallen to 30
ing. Here, the focus is upon the differentials by
and 20 percent, respectively, a decade later. 16
age although they are closely intertwined with
It is evident from the statistical data that
other types of differentials, especially size of
older workers in the smaller firms have experi-
enterprise.
enced a greater loss in their relative position on
Japan's wage structure as a whole experi-
the age scale than older workers in the larger
enced a widening of differentials by age in the
firms. In 1954, male workers age 18-19 in man-
larger firms and a narrowing in the smaller
ufacturing firms with 10-29 employees received
firms from 1954 to 1960. After 1961, age differ-
about half the monthly contract wages of the
entials have lessened regardless of size. In the
male workers in the 40- to 50-year-old category.
smaller firms, young workers have gained more
The fraction for the same year in firms with
rapidly on older workers than in the larger
1,000 workers, or more was only one-third. By
firms. Tables 11.2 and 11.3 provide data for
1966, these proportions were about three-fifths
male workers in manufacturing which show
and almost one-third, respectively. This out-
these trends. Moreover, until the early 1960's,
come supports the contention that in Japan the
starting wages for new school graduates and
incidence of economic hardship has fallen more
for workers in the 18-19-year-old bracket
heavily upon older than upon the younger work-
tended to be higher in the larger firms com-
ers. Also the disparities by size of firm are
pared with the smaller ones, but in the last sev-
probably even greater in view of the fact that
eral years they have been evened up or slightly
young workers in firms of all sizes and senior
reversed. Thus, except for the very small enter-
workers in the small firms receive few of the
prise (with less than 5 workers), Japan has
money and nonmoney benefits received by the
developed fairly uniform wage rates for young
older employees of the large-scale enterprises.
workers, even in the absence of specific mini-
The compression of the age differentials, es-
mum wage legislation.
pecially in the small firms, probably has been
The behavior of age differentials since the
due not only to the dwindling supplies of new
early 1950's reflects the changes, discussed
school leavers but also to an increase in the sup-
more fully below, in labor force distribution by
ply of older workers from the declining to the
age among the various sectors of the Japanese
rapid fall of agricultural employment, the re-
economy. The growing demand for young work-
duced role of small enterprise, increased longev-
ers relative to their supply appears especially
ity, greater availability of retired workers and
high in manufacturing and commerce, whereas
housewives for work, and the shift from seif-
shifts by older workers tended to concentrate in
employment and unpaid family work to wage
industries such as road transport and construc-
and salary employment are the main factors
tion. One explanation for the less rapid narrow-
that appear to account for the increased supply.
ing of age differentials within the large firms is
Large employers have an increasing number of
that the growing employment of wage and sal-
employed workers of this type, particularly as
ary workers flowed increasingly into enter-
the supply of junior high graduates has fallen,
is
FORD
173
but they are reluctant to place such older work-
is a complex of values inherited from the dis-
ers in the nenkô system. Rather, as mentioned,
tant past. These values appear to be changing
the status of these employees is likely to be as
only slowly toward rewarding workers directly
temporary, casual, subcontract, or part-time
for their productive contributions determined
workers in the enterprise. If they do enter the
by the external marketplace. In the meantime,
nenkô escalator (which is occurring with in-
the almost universal result is a relatively low
creasing frequency), they usually do SO at a
wage for the young worker, probably below or
wage level below their age and length of service
no more than the value of his marginal produc-
counterparts who have initially been hired di-
tivity. No doubt this increases the attractive-
rectly upon school graduation. Only a small
ness for enterprises of recruiting young work-
proportion is likely to "catch up." Increasing
ers into their work forces, making heavy invest-
employment of workers who have this "half
ments in their training, and providing induce-
way" status probably has contributed to the
ments for them to remain in their organizations
narrowing of the age differentials. As seen from
for the duration of their careers.
the statistical data, male workers in the 50-60
age bracket employed in manufacturing firms
Employment and unemployment
with fewer than 500 employees fare worse than
their coworkers in the 40-50 age group and no
Japan's unparalleled economic expansion
better than those in the 30-35 age group. This
since the mid-1950's is undoubtedly the major
has not been the case for firms with 1,000 work-
factor that explains exceptionally low levels of
ers, or more. Once beyond the age of 60, how-
unemployment not only for the total Labor force
ever, senior workers in any size firm do not do
but also for youth. Utilizing concepts, definitions,
as well as even the 25-30-year-olds, although
and survey techniques similar to those used by
they do better than the 15-24 age group.
the Bureau of Labor Statistics in the United
The importance of length of service coupled
States, the Japanese Government has reported
with age in the same firm until retirement is
unemployment rates for the total labor force in
seen in table 11.4. Here, in 1954, the indexes for
the 1960's of approximately 1 percent-about
men in manufacturing show a rise in basic
half the level of a decade earlier. While the in-
wages of 5 and a half times between workers
stitutions and practices in the Japanese labor
under 18 years of age with 1 year of service and
market tend to protect permanent workers
workers 40-49-year-olds with 30 years or more
against unemployment, the high degree of
of service on the average. By 1966, this differ-
"full" employment recently observed for Japan
ence had dropped to about 4 times, although it
must be explained mainly by economic factors.
is of interest to note that whereas, in 1954
Otherwise, one would expect relatively high
workers in the 50-59 age bracket with at least
rates of unemployment, and considerable under-
30 years of service were not earning as much as
in agriculture), close to 6 million were self-
those in the 40-49 age group, in 1966 they were
employed, family workers, and subcontract,
actually ahead. When broken down by firm size,
temporary, and part-time employees, as well as
the length of-service factor plays a far stronger
those forced to accept work in technologically
role the larger the enterprise.
backward and often unstable small firms. In
In sum, the evidence suggests that as in the
1967, of the 40 million persons employed in non-
past, age differentials in Japan have been nar-
agricultural work (an additional 10 million are
rowing under conditions of rapid economic
in agriculture), close to six million were self-
growth and structural change, they have not
employed and another 3.5 million were family
been narrowing so fast as to dissipate still siz-
workers. Of about 30 million nonagricultural
able differences according to age and length of
wage and salary earners, 1.6 million are tempo-
service. One may conclude that these two fac-
rary employees and 1.2 million casual day
tors, along with size of firm, far more than oth-
laborers."
ers remain the major determinants of an indi-
As seen in table 11.5, officially reported un-
vidual worker's wage. Beneath the two factors
employment rates since 1961 among young
FORD
174
workers (15-19 years old) have been consist-
educational system, initiated by the Allied Oc-
ently, but moderately, higher than the rates for
cupation, opened much wider opportunities
the total labor force-of the order of 25 to al-
than has existed for young people to go to adv-
most 100 percent more. Following revisions in
anced schooling. Before 1945, the youth were
1967 of the survey techniques and other proce-
channeled early, around the age of 10 or 12, into
dures for estimating employment and unem-
a multiple track system, each tier of which led
ployment, the Japan Ministry of Labor has in-
to fairly distinct occupational levels. The re-
dicated that unemployment rates for both the
forms abolished much of this system, and, while
total labor force and for young workers have
they substituted stiff examinations for pupils to
actually been higher than previously estimated.
advance from compulsory education, to the best
The revised figures give the overall unemploy-
high schools and universities, the reforms
ment rate since 1963 as between 1.1 and 1.3
opened the way to a larger array of newly cre-
percent and for 1967 only the unemployment
ated schools at the secondary and higher levels
rate in the 15-19 year-old group as 2.1
of education. Regular attendance at school,
percent.18 Unfortunately, unemployment data
rather than performance, appears sufficient to
by age categories for earlier and later years
assure graduation. The schools, moreover, in co-
based on the revisions are not available. In the
operation with the public employment offices
teenage group, however, there are no significant
and employers, are important in recruitment
differences in unemployment rates by sex.
and placement of graduates. In March 1963,
In addition to the high economic demand for
there were 2.7 job openings through the public
workers in general, the supply of youth has
employment offices for every new school gradu-
been falling. Although the 15-19 year-old pop-
ate who filed a job application. By March 1967,
ulation grew from 8.5 million to almost 11.2
the ratio had risen to 3.2.¹⁹
million from 1961 to 1967, the rate of increase
One reason for the higher unemployment
tapered off rapidly and it appears that an abso-
ratio for youth than the total labor force proba-
lute decline has set in since 1967 reflecting the
bly is their greater mobility especially as the
sharp drop in Japanese birth rates beginning in
result of voluntary separation. While voluntary
the early 1950's. The numbers of 15-19 year
quits have been growing for the labor force as a
olds participating in the labor force fall almost
whole during the past several years, the rise has
continuously from 1961 to 1965-from 4.3 mil-
been more marked for the 15-19 year-old group.
lion to 3.8 million-after which there was a re-
Since only about 60 percent of the Japanese
covery in 1967 to 4.5 million. Thus, there has
labor force are classed as "employees" rather
been slight decline in the 15-19 year old partici-
than self-employed or family workers (each of
pation rate-explained mainly by a much
which constitutes 20 percent), underemploy-
higher proportion of junior high graduates who
ment may be a more serious factor than unem-
go on to high schools and get a higher education
ployment among young workers. Unfortunately,
rather than enter the job market. Actually,
there is no reliable measure of differentials in
there has been a drastic decline in junior high
underemployment between youths and adults al-
graduates immediately entering the labor force
though government officials have expressed con-
at the usual age of 15, but their participation
cern that many youths are employed in dead-
has been shifted to the high school graduation
end or unproductive jobs. One faltering ap-
level of 18 years of age. The increased quality
proach to this question is seen in table 11.6,
of the young workers, as measured by educa-
based on data gathered in the 1968 triennial
tion, has assured them of greater starting
"Employment Status Survey." In this survey,
wages than new junior high graduates within
workers are asked whether they have a job and,
the established nenkô systems.
if so, whether they are seeking an additional or
No doubt, higher starting wages and a career
new job, are relatively dissatisfied with their
on a more elevated nenkô wage curve have been
current job and, perhaps, are "underemployed."
an important inducement for young workers to
Although there are hazards in considering
cóntinue in school. The postwar reforms of the
"dissatisfied" job holders as "underemployed,"
175
the percentage of young workers in this cate-
rapid expansion and "full employment" of the
gory was significantly greater than the percen-
Japanese economy, however, all of these meas-
tage in this category in the total work force
ures are relatively low.
(2.8 VS. 1.6). The proportion of the young un-
employed to total unemployment rates are pre-
Conclusions
sented in table 11.5. Young people always show
greater propensities for mobility, and without
Each nation in the course of modern eco-
some measure of their productivity relative to
nomic growth will develop its own institutional
wages, the desire to seek other work cannot be
and economic patterns that may not be replica-
adopted as a definitive measure of their under-
ble elsewhere. Thus, the attempt to "transfer"
employment. Nonetheless, given their low
practices or policies from one country to
wages, the expressed desire for other work, cou-
another is not likely to succeed except in the
pled with an actual search, may be viewed as a
roughest outlines.
useful supplement to the "totally unemployed"
Yet, the examination and analysis of foreign
statistics in appraising the relative economic
patterns are useful in yielding insights not only
status of young workers in Japan.
about another nation but also about one's own
The numbers "without a job but wishing to
nation. The Japanese case appears instructive
work and seeking work" presented in the
in this sense with regard to youth employment
triennial survey data of table 11.6, substantially
and wages. The following points merit special
exceed the "totally unemployed" presented in
emphasis:
the monthly labor force surveys (table 11.5).
First, Japan's experience with modern indus-
Here, too, the proportion of young people (15-
trialization and rapid economic growth has not
19 years) in this category (relative to the labor
avoided problems of underemployment and un-
force 15-19 years of age) is approximately dou-
derdevelopment. A very high growth rate
ble that of the total labor force in this category.
coupled with major structural shifts in Japan's
This might be construed as a measure of "dis-
economy has probably been overriding in keep-
guised unemployment" since it probably reveals
ing unemployment rates of virtually all groups
longer-term wishes and job search activity. The
comparatively low. It is not at all certain that
lower levels of unemployment presented in table
underemployment and dissatisfaction in Japa-
11.5 are geared to work and job search activi-
nese labor markets have been dispelled as eas-
ties in a particular survey week. The data in
ily.
table 11.6 include persons wishing and seeking
Second, in spite of marked wage differentials
part-time work as well as full-time work.
in relation to age, youth unemployment rates
The data are indicative of the volatility of
still exceed the average for the total labor force,
employment that still exists as the Japanese
and youth probably experience more underem-
economy moves rapidly away from its dualistic
ployment and have less productive jobs than
structure. In the wake of this development are
their older counterparts.
probably fast opening (and closing) job oppor-
Third, youth have been "advantaged" in em-
tunities and still a sizable proportion of under-
ployment by several major institutional fac-
employment. In 1966, 8 million of the employed
tors: The nenko system, extensive on-the-job
labor force worked less than 35 hours per week
training, based on low-mobility rates, and rap-
on the average. At least one-fourth of these
idly changing technologies requiring higher lev-
were employed from 1 to 14 hours per week.²⁰
els of training and education. Should the Japa-
It is seen, then, that unemployment rates
nese economy continue to grow at its present
among Japanese youth have been consistently
high rate and its structure become increasingly
higher than those for the total work force; and
modernized, Japanese youth are likely to enjoy
that there may also be greater underemploy-
more favorable employment prospects than
ment and disguised unemployment among
their parents and grandparents did regardless
workers in the 15-19 age category. Given the
of the wage structure.
176
Fourth, the incidence of economic hardship in
confluence of these factors in the American
Japan-through unemployment, underemploy-
economy might well have similar effects on
ment, and relatively low income-probably falls
youth employment regardless of the wage struc-
more heavily on older than on younger workers.
ture. In the Japanese case, the role of these fac-
Japan has two major groups of senior workers:
tors obscures the importance of the wage dif-
the permanent workers in the large enterprises
ferentials for employment and unemployment.
who enjoy steady advancement until retire-
In appraising Japanese experience for pur-
ment, and the categories of nonpermanent
poses of American policy, however, it is espe-
workers in both the large and small enterprise
cially important to note that wage differentials
sectors and in agriculture. Thus, it is by no
for youth in Japan result not from legislative
means universal that age and seniority com-
fiat but from an institutional complex of much
mand rewards in Japan. The outcome depends
broader dimensions and greater flexibility. The
on one's organizational attachment, established
United States could not expect to adopt one
early in the worker's career. As a result, em-
component of the nenko system without adopt-
ployment and income problems of the older and
ing other components and hope to achieve re-
retired worker are more important to Japan's
sults similar to Japan. When wages are as low
policymakers than the problems of the eco-
as those accepted by new workers in Japan, the
nomic status of youth. For example, the oppor-
distinctions between employment, underemploy-
tunities for attractive employment for Japanese
ment and unemployment become blurred. Many
workers over 55 are relatively few. However, a
American youth would prefer to remain "unem-
fuller examination of this question would re-
ployed" than accept such relatively low wages.
quire a detailed analysis of social security pro-
Many of those who accepted this low-income
visions, hiring practices of older workers, and
employment would be in an "underemployed"
family economic ties.
status, with consequences for public policy as
What is the significance of these results for
serious as those arising from outright unem-
American policy? The relatively high rates of
ployment. Even in Japan, wage rates for youth
unemployment among American youth have
have been among the most rapidly rising wage
been too widely discussed to require recounting
categories in recent years.
here. The gap between youth unemployment
Why, then, are entering Japanese workers
rates and those for the total population is
still willing to accept a low starting wage, in
greater in the U. S. than in Japan; and all un-
many cases an "exploitative" wage, below their
employment rates are at much higher levels
current marginal productivity? They view their
here. Wage differentials based on age may con-
starting wage as part of a total income package,
tribute to lower youth unemployment rates in
lasting until age 55, in which low starting
Japan, relative to the U. S., but the persistence
wages are offset by high final wages which
of higher rates of Japanese youth unemploy-
might greatly exceed their productivity at later
ment and underemployment relative to the total
stages. In other words, the nenko system pro-
Japanese work force raises questions concern-
vides a life-time income matching lifetime prod-
ing the overall significance of the wage impact.
uctivity, and it is viewed as such by young Jap-
Giving statistical precision to the various fac-
anese workers. Without the rewards of age, the
tors which affect employment, unemployment
"exploitation" of youth would be unacceptable.
and underemployment among Japanese youth
This view of wages derives from long-estab-
has not been possible. On the basis of our exam-
lished cultural values and social relations as
ination, however, it appears reasonable to con-
well as economic forces.
clude that wage differentials are less important
Employers in Japan are willing to accept this
factors than rapid economic growth, structural
system and make lifetime commitments because
and technological shifts, national full employ-
low rates of labor mobility make extensive on-
ment, relatively low mobility rates, and the re-
the-job training a sound investment, thereby
lative shortage of young workers. A similar
permitting a growth of skills to parallel an in-
FORD
177
creases in wages. And the "early" retirement
relative to the average minimum wage? If not,
system permits the employer to terminate a
youth may not "accept" such a structure of dif-
worker at the point at which the system be-
ferentials. And yet, given mobility rates and
comes excessively costly.
other labor market traditions in the United
Is the United States prepared to adopt the
States, employers, workers over 55, and public
other essential components of the Japanese sys-
opinion are not likely to accept the nenko sys-
tem at the same time as it reduces youth wages
tem as a totality.
FOOTNOTES
1 See, for example, Koji Taira, "The Dynamics of
try of Labor, Tokyo, 1968; Alice H. Cook, Japanese
Japanese Wage Differentials, 1881-1959" (unpublished
Trade Unionism (Ithaca Cornell University, 1966),
Ph. D. Dissertation, Standord University, 1961) ; and
pp. 53-56.
Solomon B. Levine, "Labor Markets and Collective Bar-
13 See Taira, op. cit.
gaining in Japan," in W. W. Lockwood (ed.), The State
and Economic Enterprise in Japan (Princeton, N.J.,
14 Japan Statistical Yearbook, 1966, Office of the
Princeton University Press, 1965).
Prime Minister, Tokyo, 1967.
2 Gerald G. Somers and Masumi Tsuda; "Job Vacan-
15 Bureau of Statistics, Office of the Prime Minister.
cies and Structural Change in Japanese Labor Mar-
16 Bureau of Employment Security, Japan Ministry
kets," in The Measurement and Interpretation of Job
of Labor.
Vacancies. National Bureau of Economic Research,
(New York, 1966), pp. 204-205.
17 Year Book of Labor Statistics, 1967.
8 Japan Labor Bulletin (Japan Institute of Labor,
18 Japan Labor Bulletin, July 1969; Year Book of
Tokyo), September 1962, February 1963, December
Labor Statistics, 1967.
1963.
19 Year Book of Labor Statistics, 1965 and 1967.
4 360 yen=US$1 (had been 4.267=$1 before 1941;
20 Year Book of Labor Statistics, 1967, p. 13.
since 1949 360 y=$1).
5 Ibid., February 1963 and November 1963.
Table 11.1. Size of establishments and workers in
6 Ibid., September 1962 and May 1964.
private non-agricultural industry in Japan, June 1966
7 Ibid., October 1963, December 1964, and April 1966.
8 Survey of Employment Trends for 1965, Japan Min-
Size of Establishment
Number of
Number of
(number of workers)
Establishments
Employees
istry of Labor.
9 Hideaki Okamoto, "Enterprises in Japan: A Socio-
1
1,104,480
1,104,480
2-4
1,981,780
5,171,471
logical Prospective," Japan Labor Bulletin, July 1967.
5-9
609,132
3,914,287
10-19
290,936
3,881,419
10 See Solomon B. Levine, Industrial Relations in
20-29
98,897
2,348,330
30-99
123,403
6,088,628
Postwar Japan Urbana (University of Illinois Press,
100-499
27,741
5,159,753
500-999
1,957
1,331,346
1958).
1,000 or more
1,066
2,256,772
Total (number)
4,239,392
31,256,491
11 Japan Labor Bulletin, March 1969.
12 Year Book of Labor Statistics, 1967, Japan Minis-
1 Private establishments only.
Source: Year Book of Labor Statistics, 1967. Japan Ministry of Labour, pp. 15-18.
178
Table 11.2. Monthly contract cash earnings in Yen for male workers in manufacturing by age and size of enterprise,
selected years 1954-66
[Index: Age Group 20-24 = 100]
Average
18 and
18-19
20-24
25-29
30-34
35-39
40-49
50-59
60 and
Size: number of
earnings
under
over
employees
Years
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
Y
Index
1954
19,179
150.5
6.350
49.8
9,120
71.5
12,747
100.0
17,430
136.7
7.20.939
164.3.23,507
84.425,889
203.1
25,861
202.9
13,348
104.7
1,000 or more
1961
26,461
159.7
8.369
50.412,973
78.216,574
100.0'22,603
136.730,203
182.034,792
210.1 39,307
237.039.882
240.5
20,836
126.0
1966
39,700
143.3
15,600
56.3 21,100
76.2:27,700
100.0.34.500
124.5 42,000
151.6.49.800
179.855,200
199.358.600
211.629.600
106.9
1954
14,264
126.8
5,351
47.6.8,049
71.511.252
100.014.866
132.1.17.402
154.718,736
166.5 19.305
171.617.95
159.513,733
122.0
100-499
1961
19,695
121.4
8,611
53.0.12.245
75.4:16,226
100.021.337
131.625,014
154.3.27.693
170.828.888
178.126.257
161.8.20.066
123.7
1966
32,500
116.5
15,600
55.9.20.500
73.527.900
100.0 34.900
125.139,600
141.941.600
149.1 43.200
154.8 39,600
141.9 30,800
110.4
1954
10,302
114.1
5,022
55.6 6,883
76.2
9,031
100.011.197:
124.012,999
143.913.379
148.1 13,201
146.212,366
136.910.032
111.1
10-29
1961
17,154
111.8
9,237
60.211,874
77.315.346
100.0 18,701
121.9.20.223
131.7.21.472
139.921,478
140.0 19,117
128.316,093
104.9
1966
32,200
110.7
16,500
56.7 21,700
74.6
29,100
100.0.34,800
119.637,100
127.5,37.100
127.5,36,900
126.8
33,800
116.2.29,100
100.0
Source: RODO HAKUSHO (Labor White Paper), 1967. Japan Ministry of Labor, pp. 254-55.
Table 11.3. Monthly contract cash earnings in Yen by
age in Japanese manufacturing enterprises with less than
five employees, selected years, 1958-66
Age
1958
1961
1966
Under 18
3,615
6,474
13,546
18-19
4,641
7,732
16,651
20-24
25-29
7,431
10,317
21,338
12,858
26,289
30-34
9,365
13,360
26,203
35-39
12,384
23,823
40-49
9,584
12,136
22,155
50 and over
9,045
11,937
21,413
Average
7,272
11,043
22,651
Source: RODO HAKUSHO (Labor White Paper), 1967. Japan Ministry of Labo
p. 259.
Table 11.4. Wage differential indexes for male workers in Japanese manufacturing by age, length of service, and size
of firm, selected years 1954-66 1
Length of
All enterprises
1,000 employees or more
30-99 employees
Age
service
(years
1954
1961
1966
1954
1961
1966
1954
1961
1966
Under 18
1
124.3
116.1
109.5
121.2
109.2
106.2
124.8
117.6
114.9
Under 18
2
145.0
129.2
111.7
136.5
116.2
113.1
144.1
132.0
124.3
18-19
3-4
190.1
166.9
145.6
176.6
168.5
140.7
198.0
164.4
152.7
20-24
5-9
286.6
225.6
199.3
265.7
229.5
186.9
266.9
221.8
209.5
25-29
10-14
413.3
306.1
251.1
373.9
327.1
255.9
329.0
283.6
264.9
30-34
15-19
515.9
393.4
304.1
475.5
413.5
315.2
412.2
312.0
294.6
35-39
20-29
570.6
443.4
358.5
561.4
518.4
375.2
478.5
367.4
295.3
40-49
30 or over
607.8
556.6
419.7
600.0
659.6
466.9
453.0
365.7
295.3
50-59
do.
586.8
532.2
437.4
612.8
641.8
488.3
389.2
331.0
299.3
60 or over
do.
317.7
262.6
257.1
383.7
501.6
228.8
343.0
249.4
267.6
1 Male elementary and junior high school graduates with less than one year's
service = 100.
Source: RODO HAKUSHO (Labor White Paper), 1967. Japan Ministry of Labor,
pp. 256-57.
FORD
179
Table 11.5. Employment status of total labor force and
Table 11.6. Youth and total workers seeking additional
youth in Japan, 1961-67
or new work in Japan as of July 1, 1968
[In thousands)
In thousands]
Unemployed
Total
15-19 years
Labor force
Employed
Employment status
Year
Total
15-19 years
Number
Percent
Number
Percent
Total
15-19
Total
15-19
Num-
Per-
Num-
Per-
With a job
4,906
100.0
3,895
100.0
years
years
ber
cent
ber
cent
Seeking additional job
459
0.9
22
0.6
Seeking change of job
805
1.6
109
2.8
1961
45,620
4,250
45,180
4,200
440
1.0
60
1.4
Without a job but wishing to work
8,018
100.0
1,278
100.0
40.6
563
44.1
1962
46,140
4,260
45,740
4,200
400
0.9
60
1.4
Seeking work
3,255
1963
46,520
4,080
46,130
4,020
400
0.8
60
1.5
Not seeking
4,763
59.4
715
55.9
1964
47,100
3,820
46,730
3,770
370
0.8
40
1.0
1965
47,870
3,920
47,480
3,860
390
0.8
60
1.5
1966
48,910
4,360
48,470
4,300
440
0.9
60
1.4
Source: 1968 Employment Status Survey. Bureau of Statistics, Office of the Prime
19671
49,780
4,510
49,350
4,150
440
0.9
Minister, Japan.
1 Figures for 1967 are preliminary.
Source: Year Book of Labour Statistics, 1965, 1967. Japan Ministry of Lator.
&
FORD
RALD
CHAPTER XII
Summary and Conclusions
Over the past 20 years, unemployment among
mid-1950's to 13 percent in the last few years
youths age 16-19 has been higher than that for
-has compounded problems of job placement.
adults. Since 1948, teenage¹ unemployment
The proportion of teenagers enrolled in school
rates have varied from a low of 7.6 percent in
has increased from 50 to 70 percent. While
the last year of the Korean War (1953) to a
school takes some teenagers out of the labor
high of 17.2 percent in 1963. By contrast, the
market, an increasing proportion of those en-
unemployment rate for adults over age 24
rolled in school are also in the labor market
ranged from a low of 2.3 percent in 1968 to 5.6
seeking jobs-jobs that fit in with the require-
percent in 1958.
ments of school attendance with respect to loca-
As might be expected, there is a similarity
tion, hours, and SO on.
between fluctuations in the unemployment rates
The movement of families from farm to city
for teenagers and for adults, because general
and the decline in farm employment has also
business conditions affect the employment of all
meant that a smaller proportion of teenagers
groups within the population. Yet the unem-
are employed in agriculture-a decrease from
ployment rate of teenagers has, in the 1960's,
18 percent in 1948 to 7 percent last year. Many
increased relative to the rate for adults.
teenagers had been employed on family farms;
Although, between the recession of the early
now they must compete in the urban labor
1960's and the full employment of the last few
market. Potentially compounding all these de-
years, the unemployment rate for both adults
velopments has been the effect of the military
and teenagers has decreased, the relative dec-
draft and its attendant uncertainties.
line was much smaller for teenagers than for
adults. The adult rate dropped from almost 5
Another development of major significance to
percent in the first 4 years of the decade to 2.5
policymakers is the Federal minimum wage.
percent in the last 3 years; for teenagers, from
According to economic theory, a wage set
about 16 percent to 13 percent. Thus, from 1948
higher than the rate normally prevailing in the
to 1962, the teenage rate was 3 times the adult
market will mean that some workers will not be
rate; but in the last few years it was 5 times as
able to find jobs. Probably those workers who
high (table 12.1 and chart 2).
are less productive-either because they are un-
Many developments of the last 20 years could
trained or inexperienced or have inadequate
have contributed to the persistently high rates
tools to work with-will have special employ-
of unemployment for teenagers and the increase
ment problems. A legal minimum wage might,
relative to adults in the 1960's. A substantial
therefore, help explain the unemployment prob-
growth in the size of the teenage population re-
lems of some teenagers.
lative to adults-from about 9 percent in the
In 1950, the Federal minimum wage under
the Fair Labor Standards Act (FLSA) was 75
cents an hour. In the years following, the mini-
Footnotes appear on p. 189.
FORD
180
181
Table 12.1. Teenage unemployment rates and ratios
irrelevant or are their expectations high due to
the minimum wage?
Unemployment rates, 16- to
Ratio of unemployment rates,
19-year-olds
16 to 19 years, to rate for 25
In addition to questions concerning past ex-
Year
years and over
perience, two others require examination (4)
Total
White
All others
Total
White
All others
Regardless of whether or not the legal mini-
mum wage has significantly contributed to the
1948
9.2
8.9
11.2
3.17
3.30
2.49
1949
13.4
13.0
16.9
2.79
2.89
2.35
problem of youth unemployment, would a dif-
1950
12.2
11.8
15.3
2.77
2.95
1.96
1951
8.2
7.8
11.0
2.93
3.00
2.44
ferential minimum wage for youth reduce that
1952
8.5
8.3
10.5
3.54
3.77
2.33
1953
7.6
7.5
8.8
3.17
3.41
2.26
problem in the future? (5) Would any signifi-
1954
12.6
12.1
16.6
2.68
2.88
1.91
1955
11.0
10.4
15.6
3.06
3.25
2.08
cant problems be caused by a youth differential,
1956
11.1
10.1
18.1
3.36
3.48
2.66
1957
11.6
10.6
19.1
3.41
3.42
2.98
such as reduced family incomes or a shift in the
1958
15.9
14.4
27.4
2.84
2.82
2.63
1959
14.6
13.1
26.1
3.32
3.36
3.00
incidence of unemployment from teenagers to
1960
14.7
13.5
24.3
3.27
3.46
2.89
1961
16.8
15.3
27.7
3.11
3.19
2.66
other groups?
1962
14.7
13.3
25.3
3.34
3.50
2.84
1963
17.2
15.5
30.3
4.00
4.08
3.70
1964
16.2
14.8
27.3
4.26
4.35
3.79
1965
14.8
13.4
26.5
4.63
4.62
4.49
The evidence from time series
1966
12.8
11.2
25.4
4.92
4.87
5.18
1967
12.8
11.0
26.2
4.92
4.58
5.57
1968
12.7
11.0
24.9
5.52
5.24
6.23
Studies of the relationship between minimum
Note: For more detail, see chapter 1.
wages and teena ge unemployment rates com-
pleted over the past several years have not ar-
mum was raised until, at the end of 1969, it
rived at a uniform set of conclusions. The econ-
stands at $1.60 for most workers covered by the
ometric analysis undertaken for this report
law.2 Of course, prevailing market wages have
used several approaches to analyze data. Basi-
been increasing at the same time. Relative to
cally, quarterly data for 1954 through 1968
average hourly earnings, the minimum wage in
were examined for different sex-color-age
1968, as indicated in chart 1, was not much dif-
groups within the teenage population. Varia-
ferent from its relative level in 1950.
tions in the proportion of teenagers employed
Perhaps more significant have been the ex-
and the proportion unemployed were compared
pansions of coverage under FLSA into the re-
tail trade and service sectors in the 1960's.
Chart 1. Coverage of minimum wage law and changes in
Trade and service industries employ dispropor-
minimum rates as a percentage of average hourly wages.
tionately large numbers of teenagers. Further,
there are many low wage sectors in those two
industry divisions. In 1968, for example, aver-
Minumum wage/AHE
Coverage (in percent)
65
90
age hourly earnings were $2.16 in retail trade
compared with $3.01 in manufacturing and
Minimum wage as percent of
average hourly earnings
$2.85 for the private nonfarm economy.
55
80
In examining past relationships between min-
imum wages and the high unemployment rates
of youth, certain general questions must be in-
45
70
vestigated: (1) Have changes in the level of
minimum wages and coverage of minimum
wage laws contributed to the problem of youth
35
60
unemployment? (2) Do employers avoid hiring
Percent of nonsupervisory
workers in private nonfarm
teenagers because the wage that must be paid
economy covered by FLSA
them is not low enough to offset the disadvan-
25
50
tages of inexperience or lack of maturity, or are
1948
52
56
60
64
1968
Year
other reasons more important in inhibiting
their employment? (3) Do teenagers expect
wages so high that minimum wage rates are
182
Table 12.2. Proportion of earnings covered by the Fed-
effects of minimum wage legislation; and that
eral minimum wage.
minimum wage legislation may have had
greater adverse effects upon 16- and 17-year-old
Basic minimum wage
Minimum
as a percent of
Minimum
wages as a
than upon 18- and 19-year-old youth.
wages as a
percent of
Basic
percent of
average hourly
The analysis concluded on the cautious note
minimum
average hourly
earnings
wage
Total
earnings
weighed by
that, "While there are hints of adverse effects
Year
effective
Average
compensa-
weighted by
industry teen-
at end
hourly
tion per
industry total
age employ-
of minimum wages in available data, no firm
of year
earnings,
man-hour.
employment
ment and
private
private
and proportion
population of
statements can be made about the magnitude of
nonfarm
nonfarm
covered. pri-
total employ-
vate nonfarm
ment covered
such effects."
private nonfarm
Another survey undertaken for this report
1947
$0.40
35.4
31.3
20.3
1948
32.7
27.7
differs significantly in approach from other re-
19.1
1949
31.4
27.9
18.0
1950
.75
56.2
49.6
32.3
cent studies. Its analysis traces the employment
1951
51.7
45.5
30.1
1952
49.3
43.1
28.4
experience of an identical group of young
1953
46.6
40.8
26.9
1954
45.5
39.5
25.8
18.2
males, 15 to 25 years of age, during a time when
1955
43.4
38.1
24.8
17.6
1956
1.00
53.2
46.0
30.7
21.0
the Federal minimum wage was increased from
1957
52.9
43.4
29.8
20.2
1958
51.3
41.9
28.3
18.4
$1.25 in 1966 to $1.40 in 1967 and coverage was
1959
49.5
40.1
27.3
18.1
1950
47.8
38.5
26.2
17.8
expanded significantly. For the teenagers, as
1951
1.15
49.1
40.9
28.3
21.0
1562
51.8
43.1
32.8
27.7
well as for older groups, the analysis showed
1963
1.25
51.9
42.9
32.5
27.1
1964
53.0
mixed results.
43.3
33.4
27.7
965
51.0
41.8
32.5
27.1
1966
48.8
39.5
31.5
26.7
Those teenagers already earning $1.40 or
1967
1.40
53.8
41.5
39.2
36.9
1968
1.60
55.6
44.0
42.6
40.1
more in 1966 were not directly affected by the
new minimum. If the minimum wage had any
Note: For explanations, see table 1.6 in chapter 1. Dashes indicate data not available
effects, it would be expected to lead to more
with variations in the minimum wage, control-
time unemployed or more time spent out of the
ling other relevant variables. These variables
labor force by the low wage teenagers. Con-
included the adult unemployment rate, the pro-
trary to this expectation, table 12.3 shows that
portion of teenagers employed in agriculture,
the average number of weeks low wage teen-
the relative size of the teenage population, the
agers were unemployed not only declined be-
school enrollment rate, and the relative size of
Chart 2. Fluctuations in adult and teenage unemploy-
the Armed Forces. A similar analysis of the
ment rates, 1948-68
employment experience of teenagers as a whole
through a more extended period, 1948 to 1968,
used annual data.
These analyses concluded that it was not pos-
Teenage rate
Adult rate
sible to adequately separate out the effects of
22
6.2
minimum wage changes from other develop-
Teenage
ments. A demonstrable relationship exists be-
unemployment
rate
tween minimum wages and youth unemploy-
18
5.2
ment rates if other variables are excluded from
the analysis, but when other variables such as
population and school enrollment changes are
14
4.2
taken into account, the effect of changes in the
minimum wage upon teenage unemployment be-
Adult
unemployment
comes obscure.
10
rate
3.2
The study indicated that extensions of cover-
age of the minimum wage had more of an effect
than changes in the relative level of the mini-
6
2.2
1948
52
56
60
mum wage; that Federal manpower programs
64
1968
which produce employment for teenagers may
have offset, to some degree, the disemployment
183
Table 12.3. Change in labor force status, 1966-67, men
the analysis concludes, "If the minimum wage
15-19 years of age with work experience in 1966
increases did indeed create unemployment
among youth, the effect was not a pronounced
Total
Disem-
Disem-
number
Change
Total
ploy-
play-
one."
with
Change
in mean
number
ment
ment
work
in mean
weeks
employ-
rate
rate
Hourly rate of pay
experi-
weeks
out of
ed in
(into
(out of
(dollars) in 1966
ence in
unem-
labor
1965
unem-
labor
The employers' response
1966
ployed 1
force 2
survey
ploy-
force)'
(thou-
(weeks)
(weeks)
week
ment)'
(per-
sands)
(thou-
(per-
cent)
sands)
cent)
In the survey of employer hiring standards in
10 cities, included in chapter 4, the most fre-
Total or average
5,854
-1.9
-4.1
3,311
6.5
19.3
Less than $1.00
688
-1.3
-4.6
492
5.3
20.3
quently cited consideration affecting employer
$1.00-1.39
1,941
-2.3
-3.9
1,210
6.5
21.7
$1.40 or more
-1.0
-5.5
decisions to employ teenagers under age 18 was
1,591
1,165
6.4
16.1
restrictions on employment of teenagers in haz-
1 Mean number of weeks unemployed during the 12 months preceding the 1967
survey minus the mean number of weeks unemployed during the 12 months preceding
ardous occupations. Chapter 9, dealing with ex-
the 1966 survey.
2 Mean number of weeks out of the labor force during the 12 months preceding the
perience under State minimum wage laws, also
1967 survey minus the mean number of weeks out of the labor force during the 12
stresses hazardous work restrictions as well as
months preceding the 1966 survey.
$ Proportion of those employed during the 1966 survey week who were unemployed
during the 1967 survey week.
restrictions on hours of work, the cumbersome
4 Proportion of those employed during the 1966 survey week who were out of the
labor force during the 1967 survey week.
machinery of work certificates, union restric-
5 Total includes young men not classified by wage rate.
Note: For further discussion, see chapter 3.
tions, and problems of transportation as factors
curbing the employment of teenagers. The un-
tween 1966 and 1967 but declined more than
certainty of the military draft was the reason
among high wage teenagers. On the other hand,
most frequently cited by employers in weighing
the average number of weeks spent out of the
their decision to hire 18- and 19-year-olds, a
labor force fell less among low wage than high
problem underscored in the study of experience
wage teenagers, a result that is in line with
in local public employment offices in 23 areas
expectations.
(chapter 5). The belief that teenagers are un-
Looking at only those teenagers who were
willing to work for low wages is not uncommon
employed during the 1966 survey week, a
among employers. (See further discussion
greater proportion of low wage than high wage
below.) The extent to which the legal authority
employees were out of the labor force a year
to pay a wage lower than the minimum would
later. However, the proportion of low wage em-
offset such problems is uncertain.
ployees who were unemployed a year later is in
Among the small number of establishments
one case ($1 to $1.39) about the same and in
which raised age or educational hiring require-
another case (less than $1) below the propor-
ments between 1966 and 1969 in the 10-cities
tion of high wage employees who were unem-
survey of hiring standards, the reason most fre-
ployed a year later.3
quently cited by employers for doing SO was
The analysis is, as the authors note, biased
higher costs of training and hiring teenagers.
against finding adverse employment effects be-
Experience under State laws and experience of
cause the sample had "aged" 1 year between
the public employment offices also indicate lack
survey periods, thus increasing the employabil-
of education and training to be an important
ity of the group; further, the data tell nothing
reason for employers not hiring teenagers for
about youth entering the labor force for the
full-time jobs. Dissatisfaction with teenagers'
first time during this period. There was some
absenteeism, unreliability, and performance on
evidence of adverse employment effects among
the job is common.
15- to 17-year-old students who were Negroes
In principle, the lower quality of teenage
and had limited labor market information and
labor could be offset, in the employer's calcula-
among those students employed as service
tions, by paying them a lower wage. However,
workers. There was, however, no evidence of a
under the Fair Labor Standards Act, establish-
general tendency for the minimum wage in-
ments holding full-time student certificates
crease of 1967 to create relatively more unem-
have the legal authority to hire youth at 85 per-
ployment among low wage young workers. As
cent of the minimum wage. As reported in the
FORD
184
Table
12.4. Numerical distribution of establishments not utilizing or not fully utilizing full-time student certificates by
degree of utilization and reasons for less than full utilization of certificates
[Data relate to certificates in effect on April 30. 1969. and reflect utilization during the period May 1. 1968 to April 30, 1969]
Reasons for not utilizing or not fully utilizing certificates
Number
of estab-
Number
lishments
Full-time
of estab-
not uti-
students
Full-time
Company
Tem-
Delay in
Degree of utilization
lishments
lizing or
Certifi-
unwilling
students
Prefer
policy
Legal
porary
Self-
school
Union
with cer-
not fully
Fully
cate
Record
to work
unsatis-
to hire
to pay
restric-
opera-
imposed
verifica-
restric-
Other
tificates
utilizing
staffed
restric-
keeping
at sub-
factory-
regular
mini-
tions
tional
restric-
tion of
tions
reasons
certifi-
tions
mini-
workers
workers
mum
problems
tions
student
cates
mum
wages
status
wages
Total
4,615
4,163
2,168
799
881
868
788
600
504
396
356
332
223
120
39
Less than 20 percent
1,484
1.484
564
321
425
339
199
243
282
111
189
49
136
80
14
12
20 percent to 49 percent
1.085
1.085
641
198
212
211
236
151
98
114
82
78
50
36
50 percent or more
2,046
1,594
963
280
244
318
353
206
124
171
85
205
37
4
13
study of utilization of that authority (chapter
offices generally said minimum wages were not
8), only 10 percent used the certificate author-
an inportant reason for the difficulty in placing
ity fully, and 55 percent used less than half of
teenagers in full-time jobs, minimum wages
their authorized man-hours. Seventeen percent
were cited as a problem more frequently in the
of the establishments holding such certificates
case of 16- to 17-year-olds (table 12.5). The mini-
claimed they had not fully used it because stu-
mum wage was the second most common reason
dents were unsatisfactory workers (table 12.4).
for employers raising hiring standards between
Apparently for some employers at least a 15-
1966 and 1969, though such companies repre-
percent "discount" was not enough to offset the
sented less than 5 percent of all employers in
poorer quality of student help.
every city covered and less than 1 percent in
All this does not mean that wages-and the
most cities. The relatively tight labor market
legal minimum wage in particular-are ever ir-
for adults in the last 3 years, however, probably
relevant. Although local employment service
kept most employers from raising their hiring
standards. A minority of employers covered in
Table 12.5. Rank importance of reasons for difficulty in
the survey of hiring standards did consider the
placing teenagers based on local office experience during
minimum wage an important factor affecting
fiscal year 1969, average, all areas
their decision to hire teenagers (table 12.6). Em-
[Rating Scale: Very important = 3; Important = 2; Unimportant, irrelevant, or not
true = 1)
ployers located in small towns cited the mini-
Full-time jobs
Part-time jobs
mum wage more frequently than employers lo-
Reason
cated in large cities and more frequently with
16-17
18-19
16-17
18-19
reference to 16- to 17-year-olds than 18- to 19-
years
years
years
years
year-olds. Further, employers-as did the pub-
1. Level of the minimum wage has caused
employers to seek older, more experi-
lic employment offices-cited the minimum
enced workers for jobs
1.77
1.54
1.66
1.52
2. Unwillingness of teenagers to accept
wage as an important factor more frequently in
wages usually offered for jobs they are
qualified to take
1.79
2.10
1.64
1.87
the case of younger teenagers. A modest num-
3. Uncertainty over the draft makes em-
ployers reluctant to hire teenagers
1.32
2.44
1.18
1.48
ber of establishments did apply for full-time
4. Legal restrictions on hours of work.
student and learner certificates under the
hazardous work, or other working con-
ditions for teenagers
2.75
1.41
2.71
1.45
5. Hiring specifications of employers with
FLSA, though less than half the authorized
respect to education and experience
are so high that most teenagers are
time was actually used.
excluded
2.28
1.95
1.96
1.54
6. Employers) hiring specifications with
The evidence suggests, therefore, that some
respect to age exclude teenagers
2.44
1.56
2.23
1.47
7. Employer fear of higher cost of work-
employers would be willing to hire more teenag-
man's compensation and other insur-
ance when teenagers are employed
2.19
1.59
2.09
1.48
ers at lower wage rates. However, legal restric-
8. Employers believe teenagers are not
reliable
2.54
2.10
2.30
1.95
tions on the employment of youth and appre-
9. High labor turnover among teenagers
2.31
2.14
2.22
2.01
10. State laws require too much paper work.
B
hension over the quality of teenagers as employ-
such as work permits
1.85
1.07
1.59
1.05
11. High cost of hiring and training teenagers
1.65
1.53
1.57
1.41
ees are probably even more important impedi-
12. Union contract provisions
1.63
1.40
1.72
1.38
=
ments to the employment of youth.
185
Expectations of youth
Table 12.7. Rate of pay required to induce youth to ac-
cept employment or to enter labor force, and hourly rate of
Throughout the Nation, a commonplace belief
pay for those employed, by age and color, 1967
among employers and others is that young
Age and 1967 labor
Total
Less
$1.40
$2.00
$3.00
workers expect unduly high wages and are dis-
Mean pay
force status
number
than
to
to
or
required
(thousands)
$1.40
$1.99
$2.99
more
or earned
inclined to accept low status (frequently
equated to low wage) jobs. Close to 20 percent
Whites
of the employers holding full-time student cer-
Age 15-17:
tificates under FLSA claimed they did not fully
Out of labor force
808
51.1
44.5
3.9
0.5
$1.32
Unemployed
400
43.0
50.9
4.8
.0
1.35
utilize the authority because students were un-
Employed
1,968
47.5
37.9
9.9
4.7
1.59
Age 18-19:
willing to work at subminimum rates. Certainly
Out of labor force
196
13.8
57.2
23.0
6.0
1.69
Unemployed
141
18.0
46.1
29.7
6.2
1.76
there is much anecdotal material on the alleged
Employed
1,493
25.2
33.6
30.9
10.3
1.93
unreasonableness of teenagers.
All others
However, a 1967 survey of young men
throughout the Nation indicated that the aver-
Age 15-17:
Out of labor force
161
64.8
30.5
3.3
1.3
$1.30
age wage expected by unemployed teenagers
Unemployed
99
58.8
33.5
7.7
.0
1.20
Employed
297
51.6
35.6
9.4
3.4
1.53
was less than the average wage actually earned
Age 18-19:
Out of labor force
19
by those who were employed (table 12.7). Fur-
Unemployed
42
28.8
48.1
20.5
2.6
1.61
Employed
212
37.6
29.8
22.3
10.3
1.75
ther, large numbers of teenagers, both unem-
ployed and out of the labor force, did indicate
Note: For further discussion, see chapter 6. Dashes indicate data not available.
they would accept jobs at less than the $1.40
legal minimum in 1967.
The reported proportion of unemployed
Findings from the Urban Employment Sur-
young men willing to accept employment in
vey (UES), a survey of residents of selected
1967 at wages below the Federal minimum was
poverty areas of six large cities, suggest that
less, however, than the proportion of teenagers
average earnings expectations of currently un-
actually employed at lower wages. The same
employed teenagers did not exceed average
was true of teenagers, especially the males, in
hourly earnings actually received by employed
the Chicago and New York poverty areas in
teenagers. In the July 1968-June 1969 survey
1968-69. These bits of evidence lend some sup-
period, the median wage expected by unem-
port to the supposition that the unemployment
ployed teenage boys and girls was less than the
of some teenagers can be attributed to high
wage actually received by those employed.
wage expectations.
The average duration of unemployment for
teenagers is short. While this is partially attrib-
Table 12.6. Percentage of establishments covered by
utable to their ability to withdraw from the
FLSA reporting the minimum wage as a factor in the deci-
sion to hire teenagers, by city and age group
labor force, it suggests also that high wage or
status expectations of teenagers are not endur-
ing.
Under 18
18 and 19
The available evidence indicates that teenag-
City
Very
!mpor-
Not
Very
Impor-
Not
ers are knowledgeable about prevailing wage
impor-
tant
impor-
impor-
tant
impor-
tant
tant
tant
tant
levels and adjust their expectations according
to differences in levels between areas and over-
Atlanta
14
21
65
9
18
73
Detroit
16
24
60
11
18
71
time. There is some evidence that unemployed
Cleveland
10
17
73
9
16
75
Baltimore
10
20
70
9
18
73
teenagers are disinclined to accept the lower
Milwaukee
11
16
73
8
11
81
Los Angeles
8
14
78
6
11
83
Battle Creek
wage jobs. Minimum wages may be a factor
23
23
54
13
19
Auburn
67
20
28
52
13
31
56
Galveston
19
influencing these expectations. These expecta-
24
57
13
20
El Paso
67
31
25
44
25
28
47
tions contribute, at least in the short run, to
Unweighted average:
6 large areas
11.5
18.7
69.8
8.7
15.3
76.0
unemployment problems, but do not appear to
4 small areas
23.2
25.0
51.8
16.0
24.5
59.3
be a major obstacle to reducing teenage unem-
Note: For further discussion, see chapter 4.
ployment.
FORD
i
186
A youth differential
Differential rates in State minimum wage
laws-commonly 80 percent of the adult rate-
Whether or not the minimum wage has been
have had limited effects on unemployment rates.
a significant factor in causing youth unemploy-
State laws are not relevant where the Federal
ment, the question of the effects of a youth dif-
law applies if the State minimum is below the
ferential is a different issue. There has been
Federal. In a number of States, small establish-
only limited experience with these differentials
ments and certain occupations where teenagers
in the United States. They currently exist in
are employed are exempt from State law. Fur-
Federal minimum wage legislation in the form
ther, entry wage rates in some areas are far
of the certification programs under FLSA and
above the State minimums.
also in a variety of forms in State laws. In other
Over 40 percent of the local employment serv-
countries-in Western Europe, Canada, and
ice offices believed employers would hire appre-
Japan (chapters 10 and 11)-youth differen-
ciably more 16- and 17-year-old teenagers if it
tials exist by law, contract, or customs to a
were possible to pay less than the Federal mini-
much greater extent than in the United States.
mum, but only 26 percent of the offices believed
The certification programs cover a limited
this would be true of 18- and 19-year-olds.
number of workers and establishments. Em-
About 90 percent of those offices which believed
ployer interest in the certification programs has
it would make a difference thought the reduc-
increased at times of minimum wage law
tion in the minimum wage that would be neces-
changes, though trend data on issuance of cer-
sary would not exceed 40 cents.
tificates do not necessarily measure usage. The
The studies of the certification program,
study of these programs points out that the au-
State experience, and the survey of local em-
thority to hire young workers at rates below the
ployment offices suggest that if a youth differ-
minimum does not automatically mean the op-
ential is to be meaningful, it would need to be a
portunity will or can be fully used by employers
fairly substantial differential-perhaps at least
to increase employment of youth; the modest
20 percent below the adult rate-and that the
abatement of rates provided in those programs
relationship of the adult minimum to average
was, by itself, inadequate. The full-time student
wage levels could not be far below the historic
certification rates were less meaningful in the
ratio.
South where wage levels are generally low, the
The evidence from abroad indicates that low
student rate thus providing a smaller incentive
wages for youth are an inducement to employ-
to hire youth.
ers to seek young workers eagerly. The rela-
Table 12.8. Unemployment rates and the youth-adult
tively low youth unemployment rates abroad
unemployment ratio for selected countries
(table 12.8) are partially a reflection of the fact
of low wages for youth. In the United Kingdom,
Unemploy-
Youth unemploy-
Youth-adult
the Netherlands, and Japan, young workers
ment rate,
ment rate
unemployment
Countries
all ages
ratio 1
start work at about one-third the adult rate. In
1960-64
the United States in 1967, 15- to 17-year-old
1967-68
1960-64
1967-68
1960-64
1967-68
boys received a wage which averaged about 60
Germany (1961-67)
'0.3
1.1
'0.3
1.1
1.0
1.0
Canada (1962-66):
percent of the average wage paid those 20 to 25
6.9
4.0
14.4
9.7
2.4
2.6
Netherlands (1960)
0.9
1.4
1.8
years old. Much of this difference reflects a dif-
United Kingdom (1961-67).
1.3
$2.0
'0.9
2.2
'0.6
1.1
1.7
'2.3
'1.4
Sweden (1354-67)
1.7
2.6
3.9
6.1
ferent mix of jobs and job status in the two age
2.6
2.9
France (1960)
2.1
6.6
4.4
Belgium (1960)
2.5
groups.
4.0
1.7
Italy (1961-67)
3.4
3.5
9.3
11.4
4.9
5.7
United States (1960-68)
5.5
3.6
$14.7
$12.7
3.3
5.5
One element of the Japanese experience-low
Japan (1962)
0.9
1.4
1.6
wages for youth-cannot be divorced from
1 Ratio of youth unemployment rate to adult unemployment rate for adults 25 and
other parts of Japanese institutions. For exam-
over. Data from labor force surveys except as noted. Data not strictly comparable
among countries.
ple, the nenkô system with its virtual lifetime
: Ostry. Sylvia, Uuemployment in Canada, 1968. males only. ratio: youth-all ages.
2
Labor Ministry data from unemployment insurance records.
guarantee of employment within the firm and
*Census data for 1961.
$ Youth unemployment data relate to 16- to 19-year-olds.
high wages in later years offsets low wages in
# Levine and Somers. Youth Employment and Wages in Postwar Japan. Ratio: youth-
all ages.
youth.
187
Low wage rates for youth in Europe cannot
points out that very few teenagers contribute a
be separated from the extensive apprenticeship
significant share of family income. Since 73
programs in Britain, Germany, and the Nether-
percent of the teenagers who worked in 1966
lands. These programs help to channel children
earned less than $1,000 per year, their low
from school to work. Moreover, the nenkô sys-
earnings are more affected by the number of
tem in Japan and the apprenticeship system in
hours of work they find than by the wage rate.
Europe are undergoing change, or at least at-
Wages paid teenagers are, of course, not solely
tack, with possible ramifications for youth dif-
dependent on the minimum wage.
ferentials in those countries.
Reports from abroad do not indicate that
In the Soviet Union, young workers by law
adult employment has been affected adversely
have a shorter workday, a longer annual vaca-
by lower minimum rates for teenagers. How-
tion, and higher wage rates than adults doing
ever, the European countries and Japan have
the same type of work-just the opposite of ex-
had very low overall levels of unemployment.
perience in western Europe and Japan. The 16-
Thus, experience abroad does not provide a
and 17-year-old works 7 hours a day and 5 days
clear test of the effects of introducing a system
a week; 15-year-old apprentices work 5 hours a
of youth differentials. Past experience in the
day. The young worker gets the same daily or
United States is no sure guide, since differential
monthly basic pay that an adult gets for work-
rates for youth have been used to only a limited
ing 8 hours a day at the same type of work.
extent.
There have been reports in the Soviet press that
Youth differentials are common in most State
many managers of establishments have been re-
laws with no apparent evidence of adverse ef-
luctant to hire young workers because of the
fects. State minimum wage levels are not, how-
extra cost involved. To combat this practice by
ever, always meaningful relative to prevailing
employers, a joint party-government decree of
wage levels. About 40 percent of the local em-
February 2, 1966, established quotas of jobs for
ployment service offices believed that a lower
youth, the size of the quotas varying among
Federal minimum wage for teenagers would
branches of the national economy.4
have adverse effects on employment of other
In the United States, the overwhelming pro-
groups; this was, however, only an informed
portion of teenagers belong to a part-time,
judgment. Available materials do not permit
part-year labor force. Almost three-fourths of
any firm conclusions about adverse effects of a
the teenagers are enrolled in school. Experience
youth differential minimum wage.
in foreign countries having institutions differ-
ent from those in the United States has a lim-
Conclusions
ited application to American teenagers who are
much less likely to be looking for a "perma-
1. Increases in the level and coverage of the
nent" job.
Federal minimum wage may have contributed
The employment advantage of a youth differ-
to the employment problems of teenagers, but it
ential would be restricted by the fact that many
is difficult to disentangle such effects from nu-
teenagers are available for only part-time em-
merous other influences.
ployment and have a limited geographic mobil-
Prior to the 1960's, relatively few teenagers
ity. It would also be restricted by American
were employed in establishments covered by the
wage-setting institutions which emphasize a
Fair Labor Standards Act. Prior to 1966, agri-
wage for a job, not an age-wage relationship,
culture (where teenagers are employed as fam-
and further limited by legal restrictions on the
ily workers) was totally exempt; domestic serv-
employment of youth.
ice still is. Services and trade were generally
excluded from the law prior to 1961, and even
The effects of differential rates
now small establishments are exempt. The long-
run rise in the unemployment rate of teenag-
The analysis of the relationship betwen teen-
ers relative to that of adults-especially marked
age earnings and family income (chapter 7)
since 1962-appears to have been associated
FORD
BALD
188
with many factors. Compounding problems
France, or Japan, American wage-setting insti-
have been the increase in the relative size of the
tutions have generally developed the practice of
teenage population, the increase in the propor-
setting a wage rate for a job regardless of who
tion of youth enrolled in school, and the shift of
holds the job. In other countries a young clerk,
employment out of agriculture. Although
for example, may receive less than an adult
neither of the latter two factors may explain
doing the same work in the same company sim-
much of the relative rise in teenage unemploy-
ply because he is young, but this has not been
ment, they do mean that one easy-access labor
the practice in the United States. Rather,
market, namely, the family farm, is available to
any wage differences associated with age
a smaller proportion of youth and that the types
are usually attributable to young people
of employment sought by teenagers (outside
holding different types of jobs than adults.
school hours) cover a restricted range of exist-
Longevity or seniority increases are less impor-
ing employment opportunities. The increase in
tant than occupational wage differentials; fur-
the number of teenagers in school has, on the
ther, longevity increases are a function of
other hand, taken some of them out of the labor
length of service on a particular job, not chron-
force.
ological age per se. A company's demand for
The magnitude of the employment effects of
workers to do a particular job within the com-
minimum wage legislation probably has been
pany is limited. Except to the degree that al-
small, as the studies included in this report
most all persons holding a particular job in a
underline, and, consequently, difficult to meas-
company are teenagers, the nature of American
ure precisely. It should be kept in mind, how-
wage setting institutions would reduce (but not
ever, that (1) many teenagers have, until very
eliminate) the possibility of a relative decline in
recent years, been employed in sectors of the
wages paid teenagers even if there were no
economy not covered by FLSA, (2) minimum
minimum wage legislation.
wage levels have not been markedly high rela-
A cautionary note should be added. If the
tive to prevailing wage levels, judging by his-
minimum wage as a percent of average hourly
torical ratios, and (3) the importance of min-
earnings was more than the 50-percent range
imum wages, in the periods between Congres-
prevailing in the postwar period or if coverage
sional action, has been partially offset by in-
was extended to new areas, past experience
creases in money wages, tending to make any
would not serve as an accurate guide to future
disemployment effects a shortrun phenomenon.
employment effects.
Also, as the econometric study included in this
2. Employer attitudes-as reflected in both
report points out, adverse employment effects
the survey of employers and the response of the
of the minimum wage may have been, in recent
public employment offices-experience under
years, offset by Federal manpower programs.
the certification programs, and experience in
The high unemployment rates of teenagers
other countries suggest that a substantial dif-
have not brought about a drop in the relative
ferential between youth and adult rates would
wage paid teenagers and, hence, an increase in
increase the employment of teenagers. The in-
their employment opportunities. Certainly, a
centive of a large differential would help to
legal minimum wage, on its face, means wages
overcome the apprehensions employers have in-
are inflexible downward. Because minimum
dicated over the quality of teenagers as employ-
wages have been periodically increased to main-
ees. The evidence indicates the differential
tain about the same level of parity with average
would especially affect the decisions of employ-
earnings, any tendency for the spread between
ers to hire 16- and 17-year-old teenagers and
lower and higher rates to increase has been
particularly employers located outside the large
offset, except in the short run.
urban centers.
Not all sectors of the economy have been cov-
The effect of a youth differential would de-
ered by FLSA other labor market institutions,
pend on the size of the difference between the
including union contracts, have also affected
youth and adult minimums, the relation of the
wage levels and wage rigidity. Unlike Britain,
adult minimum to the current average hourly
FORD
189
earnings of rank-and-file workers, and the sim-
on the workers. The effects of a youth differen-
plicity of the regulations. Even then, the effect
tial must be separated from other develop-
of the difference would be restricted by condi-
ments. During the coming decade, the teenage
tions unique to the American scene.
population will increase 12 percent, compared
If a youth differential were instituted in the
with 40 percent in the 1960's. Assuming no
1970's, it would be difficult to evaluate its effects
major decline in economic activity, this slower
without better data, especially frequency distri-
rate of growth, alone, should help ease problems
butions of wages of workers in the American
of absorbing teenagers into the employed labor
economy along with demographic information
force.
FOOTNOTES
1
Throughout the study, the terms "youth," "teen-
data can be found in chapter 3. If columns 2 and 3 of
agers," and "young people" have been used interchange-
table 3 are added, the expected adverse pattern appears.
ably. Unless otherwise specified, the terms refer to 16-
This is not true, however, when data are controlled by
to 19-year-olds.
school enrollment status. See table 3.6 in chapter 3.
2 See table 12.2 for some additional detail.
4 Sovetskie profsoyuzy [Soviet Trade Unions], No. 12
$ More sophisticated statements of tests and further
(June 1967), p. 47.
* U. S. GOVERNMENT PRINTING OFFICE : 1970 O - 387-144
FORD