WHY RACIAL EMPLOYMENT INEQUALITY IS GREATER IN NORTHERN LABOR-MARKETS- REGIONAL DIFFERENCES IN WHITE-BLACK EMPLOYMENT DIFFERENTIALS

This article investigates employment inequality between 25-59-year-old white and black men in U.S. metropolitan areas in 1980. Greater inequ ality in employment is observed in the Northeast and Midwest than in t he South and West, Regression analysis shows that area variation in em ployment inequality is closely associated with variation in unionizati on strength, presence of large firms, and labor demand and that it is moderately associated with variation in race differences in age struct ure and education and the presence of traditionally black occupations. Regional patterns indicate that the substantially lower employment in equality in the South and West can be attributed to the more robust ec onomies, smaller average firm size, and lower levels of unionization i n the metropolitan areas in these regions. These regional differences are large and serve to offset the impact of large racial gaps in educa tional attainment in the South that often contribute to inequality in employment.