NCJ Number
60075
Journal
Industrial and Labor Relations Review Volume: 29 Issue: 4 Dated: (JULY 1976) Pages: 485-584
Editor(s)
D B LIPSKY
Date Published
1976
Length
100 pages
Annotation
THE IMPACT OF THE AFFIRMATIVE ACTION PROGRAM (AAP) IS EVALUATED IN TERMS OF THE EFFECTIVENESS OF THE FEDERAL CONTRACT COMPLIANCE PROGRAM (FCCP) THROUGH FIVE PAPERS PRESENTED AT THE ITHACA, N.Y., EVALUATION CONFERENCE.
Abstract
THE FIRST AUTHOR ESTIMATES THE POTENTIAL IMPACT OF THE FCCP BY CALCULATING THE POTENTIAL FOR REDUCING RACIAL WAGE DIFFERENTIALS BY ELIMINATING VARIOUS SOURCES OF THE DIFFERENTIALS. THE SECOND AUTHOR EXAMINES THE IMPLICATIONS OF AN ECONOMYWIDE AAP UNDER A NUMBER OF ALTERNATIVE SPECIFICATIONS AND THE WAY FIRMS MIGHT REACT TO THEM. THE RESULTS FROM THE FIRST STUDY OF THE EMPIRICAL ESTIMATES OF POTENTIAL IMPACT FOR THE 'FULL COVERAGE' CASE ARE IN LINE WITH THE SECOND. HOWEVER, THE SECOND PAPER ASSERTS THAT A RIGIDLY ENFORCED SYSTEM OF QUOTAS MAY HAVE IMPORTANT SECONDARY EFFECTS: (1) IF SKILL BUMPING IS NOT LEGALLY PERMITTED THERE WILL BE FAIRLY SERIOUS PROBLEMS IN ALLOCATING WORKERS FOR THE AAP, BECAUSE A SIGNIFICANT FRACTION OF SKILLED MAJORITY WORKERS WILL NOT BE FULLY UTILIZED; (2) IF REVERSE DISCRIMINATION IS LEGALLY AND INSTITUTIONALLY PERMISSIBLE, THE AAP MAY RESULT IN A REVERSAL OF INCOME DIFFERENTIALS BETWEEN MAJORITY AND MINORITY WORKERS; AND (3) IT IS LIKELY THAT THE AAP WOULD LOWER THE INCENTIVES TO ACCUMULATE HIGHER LEVELS OF SKILL FOR MINORITY WORKERS BUT RAISE THE INCENTIVES FOR MAJORITY WORKERS. IN THE THIRD STUDY, MICRO DATA ON 74,563 INDIVIDUAL ESTABLISHMENTS WERE USED TO DETERMINE WHETHER THE CHANGE IN THE RELATIVE ECONOMIC POSITION OF 5 SEPARATE RACE-SEX GROUPS OVER THE 1970-72 PERIOD WAS DIFFERENT FOR FIRMS WITH AND WITHOUT GOVERNMENT CONTRACTS, AND FOR PLANTS SUBJECTED TO A COMPLIANCE REVIEW AND THOSE THAT WERE NOT. SOME EVIDENCE WAS FOUND TO SUGGEST THAT THE IMPACT OF THE FCCP ON THE CHANGE IN THE RELATIVE ECONOMIC POSITION OF BLACK WORKERS WAS SMALLER DURING THE 1970-72 PERIOD THAN DURING EARLIER PERIODS. THE FOURTH STUDY FOUND THAT IN USING A CAREFUL TREATMENT OF SERIAL CORRELATION AND A FINE GEOGRAPHICAL DISAGGREGATION OF THE SAMPLE, THE STRONGEST CONTRACT PROGRAM EFFECTS WERE DISCOVERED FOR BLACK MALES. THE FINAL STUDY, A PROCESS EVALUATION OF THE FCCP IN INDUSTRY SHOWS SOME PROGRAM INITIATIVES UNDERTAKEN TO COUNTERACT PROBLEMS: (1) A PROGRAM PLAN FOR THE FISCAL YEAR; (2) NEW OR REVISED REGULATIONS ON AFFECTED-CLASS STATUS, BACK-PAY RELIEF, AND TESTING AND SELECTION; (3) ADDITIONAL GUIDELINES; (4) AN AUDIT AND FEASIBILITY STUDIES; AND (5) INTERAGENCY COOPERATION. SOME FOOTNOTES ARE PROVIDED.