Earnings of Black and White Youth and Their Relation to Poverty

Abstract

This paper examines the relation between youth employment and poverty for black and white families. An increase in the employment proportions of black men ages 16–19, which have lagged far behind their white counterparts, would reduce poverty among blacks to a moderate but meaningful degree. We provide evidence of a small positive feedback relation between black youth employment and family incomes that would magnify gains in both variables if either variable were increased. We also provide evidence that improvements in labor market conditions that affect youth employment, in the educational attainments of black youth, and in other policy-related variables would raise both youth employment and their family incomes.