The Cost of Being Black in the Black Belt

Explanations of earnings differentials typically center on individual differences that affect the status attainment process or on the opportunity structure of local labor markets. Less attention has been paid to the fact that the quality of both the labor force and labor market vary significantly by region, resulting in substantial regional differences in earnings. Using 1980 Public Use Micro Sample data from the U.S. Bureau of the Census, this paper examines the impact of region on black earnings in the South, with a focus on blacks living in the Black Belt. The use of regression standardization techniques to decompose earnings differences reveals that there are large differences within the South, the largest component of which is related to regional characteristics and not the quality of the labor force. This finding is analyzed in the context of dependency theory which posits that peripheral regions (like the Black Belt) are characterized by economic development which lags behind development in other areas.