ABSTRACT

This chapter offers a brief statistical analysis of the lack-of-jobs explanation for the growth of the underclass during 1970 to 1980. The work is preliminary in that it represents a first step toward development of a detailed economic model of underclass behavior. The strategy is to examine the reflection of underclass behavior patterns in the aggregate behavior of black versus nonblack populations. The chain of causality is presumed to extend from male decisions and prospects to female decisions. Child-rearing responsibilities have traditionally placed female labor force participation in a following role relative to male employment. The chapter designs involved looking for significant racial differences in regression coefficients for the variables appearing at the heads of the arrows. Loss of inner-city factory employment is often credited with relegating low-skilled blacks to the underclass between 1970 and 1980. In exploring the economic determinants of underclass behavior, the investigation establishes several basic relationships that have eluded quantification.