How low-income women find jobs and its effects on earnings

Abstract

This article focuses on how low-income urban women find work and the effect it has on subsequent earnings. The results show that although most find jobs through strongly tied informal contacts—a method usually associated with lower quality jobs—tie strength has no effect on earnings. The social resource perspective is supported by an earnings penalty associated with unemployed contacts. Subgroup analyses show only minor racial and ethnic differences, but women who have recently left welfare are more likely to find jobs through potentially beneficial formal sources. The results are discussed in light of the social isolation and labor market conditions faced by less-skilled female workers.