Industry Racial Employment by Skill Level: The Effects of Market Structure and Racial Wage Gaps

Jacqueline Agesa and Kristen Monaco ()

Journal of Labor Research, 2004, vol. 25, issue 2, 315-328

Abstract: Theories of expense preference suggest that market power gives employers the latitude to engage in employment discrimination. Additionally, labor market theory indicates that discrimination should cause a larger decline in black employment for prevalent and easily replaced low-skill workers relative to scarce, high-skill workers. Using industry-level data, we examine the relationship between worker skill level, market structure, and racial employment and we find that noncompetitive market structure reduces black employment for low-skill workers. In general, our findings indicate that market structure has less influence on the racial composition of highly trained workers relative to easily replaced low-skill workers

Date: 2004
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