Interfirm segregation and the black/white wage gap

William J. Carrington, Kenneth R. Troske

Research output: Contribution to journalArticlepeer-review

58 Scopus citations

Abstract

This article studies interfirm racial segregation in two newly developed firm-level databases. We find that the interfirm distribution of black and white workers is close to what would be implied by random assignment. We 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 (a) there are not enough black employers to generate much segregation and that (b) other forces may systematically integrate black and white workers. Finally, we find that the black/white wage gap is primarily a within-firm phenomenon.

Original languageEnglish
Pages (from-to)231-260
Number of pages30
JournalJournal of Labor Economics
Volume16
Issue number2
DOIs
StatePublished - Apr 1998

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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