Hiring Welfare Recipients: Employer Practices and Experiences

ABSTRACT

We examine employer hiring practices and experiences related to hiring former welfare recipients in Wisconsin. Data for this analysis were collected from phone surveys of a stratified random sample of 1,266 Wisconsin employers. We conduct analyses of previous and anticipated demand for employers that have hired or are planning to hire welfare recipients. We find a relatively high level of previous and prospective demand for hiring former welfare recipients. Most employers report that the chances for promotion are either good or excellent, but about one-third of the employers said that the chances were fair or poor. The most serious problem reported by employers with hiring former welfare recipients is with absenteeism and tardiness, with one-half of the employers reporting a problem. The starting salary for the average welfare hire is $12,743 per year. About one-third of the recent hires, however, are working part time (less than 35 hours per week). Employers in Milwaukee with a large number of women employees, a high vacancy rate and a large number of unskilled positions are likely to hire more former welfare recipients.

KEYWORDS:

• Welfare reform
• poverty
• hiring practices