The Relative Occupational Success of Blacks and Whites WITHIN THE LABOR MARKET, blacks suffer relative to whites in two ways: first, blacks are less likely to have high-paying occupations than whites, and, second, within each occupation, they are paid less. In this paper, we present and discuss some results of a study of an extensive body of data that has recently become available on the employment histories of young men, both black and white. We hope to contribute some new information from an independent source to the discussion and controversy that has emerged from Richard Freeman's paper in early 1973.1 Our first step is to divide the total deficit in black earnings into components attributable to the occupational and wage dimensions. We find that they are approximately equal in size. We go on to study the occupational component in detail, attempting to subdivide it into two parts: differences arising from the unequal treatment of blacks and whites in the labor market and differences arising from the unequal endowments of the two groups.2 Note: We are grateful to the National Science Foundation for research support. 1. Richard B. Freeman, "Changes in the Labor Market for Black Americans, 1948-72," Brookings Papers on Economic Activity (1:1973), pp. 67-120. 1959 income range Category (dollars) Typical occupations in the category 1 3, 700 or less Janitor, automobile service attendant, kitchen worker 2 3,701-4,600 Shipping clerk, packer or wrapper, cook 3 4,601-5,100 Automobile mechanic, truck driver, warehouseman 4 5,101-5,900 Machinist, automobile worker, carpenter 5 Over 5,900 School teacher, salesman, plumber in the labor market ("Occupational Status Changes for Blacks and Nonblacks During the First Ten Years of Occupational Experience," Report 76, Johns Hopkins University, Center for Study of Social Organization of Schools, August 1970, revised October 1971; processed). Their data refer to the cohort born between 1929 and 1938, so their results do not bear directly on Freeman's hypothesis.
