RACIAL-DIFFERENCES IN THE UNEMPLOYMENT RESPONSE TO STRUCTURAL-CHANGESIN LOCAL-LABOR MARKETS

This analysis uses establishment-level data on job creation and destru ction to examine the unemployment rate responses of black, Hispanic an d white workers to shifts in demand across firms and industries during the period 1980-84. Black unemployment rates are significantly more r esponsive to differences in aggregate demand growth and wage flexibili ty than are white and Hispanic unemployment rates, and they are also m ore severely impacted by structural changes in labor demand than are w hite and Hispanic unemployment rates. Additional research using the me asures and focus of the present analysis that cover other time periods can assist in developing a clearer picture of the contemporary dynami cs of urban labor markets and can provide guidance for public policy.