RACIAL WAGE DISCRIMINATION AND EMPLOYMENT SEGREGATION.

This paper develops empirical tests of the utility analysis approach to wage discrimination within a given occupation. In one section, the general equilibrium prediction of negatively sloped relative racial demand curves is tested using cross-section regressions. In another section, actual employment segregation of whites and blacks is compared with the extent of segregation that would be expected on a purely random basis and the extent of segregation predicted by the stringent version of the utility analysis model. The evidence indicates that the employment segregation prediction of the utility analysis model is doubtful, but clarifies the influence of ethnic groups and economic development on racial wage differentials. [ABSTRACT FROM AUTHOR]