The allocation of Blacks in large firms and establishments and Black-White wage inequality in the US economy

Using data from the National Longitudinal Survey of Youth (NLSY) for 1988, this study analyzes the allocation of African Americans in large firms and establishments and the effects of the allocation process on Black-white wage inequality The results show that Blacks are disproportionately employed in large establishments while being underrepresented in supervisory positions. The Black-White wage differential, however, remains significant only in the large establishments, despite this study's use of detailed controls for worker quality.