Employment Dimensions of the Urban Development Action Grant Program

摘要

This study examines the nature of employment created through the Urban Development Action Grant (UDAG) program, using the perspective of dual or segmented labor market (DLM) theory. Initial DLM hypotheses were developed from urban labor market studies of low - wage workers. The principal hypothesis suggests that labor markets can be divided into two sectors: (1) the primary labor market, characterized by good jobs in which workers may expect reasonable pay and working conditions, and (2) the secondary labor market, characterized by low wages and inferior working conditions. To determine the sector into which UDAG jobs fall, this study examined the employment dimensions of two important categories of UDAG projects: hotels and retail shopping centers. The data indicate that in both the hotel and department store enterprises, the wages of the great majority of workers are low, in many cases falling well below Government poverty standards. Few workers in these industries work full - time, and considerable seasonal variability of demand implies that full - year employment is also rare. Underemployment is common and opportunities for advancement are infrequent. The study's principal policy implication is that public subsidy of secondary labor market employment through UDAG should be avoided, and project selection criteria must include clear indications of the quality of jobs being generated. The report concludes with a listing of data requirements for an expanded research effort that will cover all important UDAG industries so as to develop project selection criteria in the jobs dimension. Forty - three notes and 27 bibliographic listings are provided.