Welfare to web to work: Internet job searching among former welfare clients in Florida

Journal of Sociology and Social Welfare, March, 2006 by Steve McDonald, Robert E. Crew, Jr.

This study provides the first empirical test of whether searching for jobs on the Internet can help people gain access to high quality jobs. Using new data from former welfare clients in Florida, we present results from a multivariate regression analysis of Internet job searching on wages and on a number of job benefits. On average, Internet job searchers receive better jobs than people who conducted more traditional job searches, net of numerous control variables. These findings suggest that welfare recipients have a great deal to gain from searching for their jobs on the Internet.

Keywords: welfare; Internet; computer; job search

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The remarkable increase in online recruiting and Internet job searching in the last decade has fundamentally transformed job searching and job allocation (Feldman & Klaas, 2002; Cappelli, 2001; Kuhn & Skuterud, 2000, 2004). The use of the Internet in job searching has the potential to lower unemployment and increase productivity to the economy as a whole (McConnell, Brue, & McPherson, 2002). However, Internet job searching and recruiting could also lead to an increase in labor market inequality, as employers may use the "digital divide" as a filtering technique (Cappelli, 2001). Firms often advertise on the Internet to screen out less desirable workers. Employers tend to view Internet applicants as better educated, more motivated and more resourceful (Niles & Hanson, 2003). Therefore, employers often use newspapers and print ads to recruit less-skilled employees, while using the Internet to target skilled workers to fill higher-level positions.

By relying solely on traditional job search methods, a job seeker may be limiting her access to low-pay, low-quality jobs. This assertion, however, has yet to be tested empirically, as most researchers simply assume that people can convert Internet access into valued resources (Dimaggio, Hargittai, Neuman, & Robinson, 2001). Only recently have researchers begun to examine the relative effectiveness of Internet job searching, although these investigations have focused on unemployment duration rather than on job quality (Kuhn & Skuterud, 2004; Fountain, 2005).

The potential for employment benefits from Internet job searching is greatest among vulnerable populations. Research on welfare recipients has focused on job matching processes and outcomes for former welfare clients (Lindhorst, Mancoske, & Kemp, 2000; Vartanian & McNamara, 2000; Anderson, Halter, Julnes, & Schuldt 2000) and on the importance of the direct intervention of welfare program managers to help clients find jobs (Livermore & Neustron, 2003; Wilson, Stoker, & McGrath, 1999). However, few have considered the Internet as a viable option for matching welfare clients to jobs. Internet job searching among former welfare recipients is comparable to Internet searching among unemployed workers in the general population (Crew and Lamothe, 2003; Kuhn & Skuterud, 2000, 2004). By tapping into the opportunities online, welfare recipients may be able to use the Internet as a bridge to stable, high quality employment.

Data and Sampling

Drawing from telephone survey data and administrative records on former welfare recipients in Florida, we provide the first empirical test of the extent to which Internet job searching results in the receipt of better jobs than traditional search methods. The sample was randomly selected from a list (provided by Florida's Department of Children and Families) of people who had been on welfare but did not receive a Temporary Aid to Needy Families (TANF) check for two consecutive months at some point between January and September of 2001. The sample consisted mostly of women (about 90 percent).

Florida State University's Survey Research Laboratory (SRL) conducted the interviews between April and July of 2003. Among eligible respondents that the SRL was able to contact, almost half completed the survey (cooperation rate COOP1 = 48%, AAPOR, 2004). However, contacting eligible respondents is extremely difficult given the population's mobility and susceptibility to interruptions in telephone service. As a result, many of the phone numbers were no longer working or were wrong numbers. The SRL made numerous attempts and called additional phone numbers for non-respondents (found through prior administrative data and an electronic telephone directory program) in order to increase the response rate. In the end, 845 respondents (out of 5,000 potential respondents) completed the survey (raw response rate RR1=17%, AAPOR, 2004). This response rate, though low, is quite similar to response rates for telephone surveys of similar populations (e.g., RR1=25% for Lindhorst et al., 2000).

Welfare populations are notoriously difficult to track, which introduces the potential for non-response bias. Non-response bias can occur when the characteristics of respondents systematically differ from the overall sample and when these differences contribute to biased estimations. Researchers of low income and welfare populations have used a variety of techniques to address the potential for non-response bias in their samples (e.g. Michalopoulos, Card, Gennetian, Harknett, & Robins, 2000; Groves & Wissoker, 1999; Kauff, Olsen, & Fraker, 2002; Crew, Eyerman, Graham, & McMillan, 2000). None of this research shows a significant response bias. Several independent sample t-tests were run to determine the extent to which the demographic characteristics of the people who completed the survey differ from the characteristics of people from the overall sample. The small differences do not appear to reflect a systematic pattern of non-response bias. Based on these results, we feel confident that our data present a fairly accurate picture of the activities of individuals who left Florida's TANF program in 2001.