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Interfirm Segregation and the Black/White Wage Gap

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  • Carrington, William J
  • Troske, Kenneth R

Abstract

This article studies interfirm racial segregation in two newly developed firm-level databases. The authors find that the interfirm distribution of black and white workers is close to what would be implied by random assignment. They also find that black workers are clustered in employers where managers, owners, and customers are also black. These findings may be reconciled by the facts that there are not enough black employers to generate much segregation and that other forces may systematically integrate black and white workers. Finally, the authors find that the black/white wage gap is primarily a within-firm phenomenon. Copyright 1998 by University of Chicago Press.

Suggested Citation

  • Carrington, William J & Troske, Kenneth R, 1998. "Interfirm Segregation and the Black/White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 231-260, April.
    • Handle: RePEc:ucp:jlabec:v:16:y:1998:i:2:p:231-60
    DOI: 10.1086/209888
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    1. Timothy Bates, 1988. "Do black-owned businesses employ minority workers? new evidence," The Review of Black Political Economy, Springer;National Economic Association, vol. 16(4), pages 51-64, March.
    2. William J. Carrington & Kenneth R. Troske, 1995. "Gender Segregation in Small Firms," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 503-533.
    3. John Bound & Richard B. Freeman, 1992. "What Went Wrong? The Erosion of Relative Earnings and Employment Among Young Black Men in the 1980s," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 201-232.
    4. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    5. James F. Ragan & Carol Horton Tremblay, 1988. "Testing for Employee Discrimination by Race and Sex," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 123-137.
    6. Higgs, Robert, 1977. "Firm-Specific Evidence on Racial Wage Differentials and Workforce Segregation," American Economic Review, American Economic Association, vol. 67(2), pages 236-245, March.
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