The racial occupational mobility gap is examined by applying a decompo
sition methodology to logistic functions. Results indicate that approx
imately one-third of the mobility gap between black and white male wor
kers is due to differences in average characteristics (the endowment e
ffect). The residual difference accounts for the remaining two-thirds.
Formal education is found to be a major component of both the endowme
nt effect and the residual difference. The 'returns' to tenure with a
firm, overall labour market experience and marriage reduce the mobilit
y gap in favour of black workers.