Interfirm Segregation and the Black/White Wage Gap
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.
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