Racial Differences in Men's Unemployment

The author uses March 1990 Current Population Survey data to investigate the reasons for the long-standing gap between the unemployment levels of black and white men (which were about 11.8% and 4.8%, respectively, in 1990). An employment probability function that controls for labor force participation is estimated separately by race. The results indicate that only 20–40% of the differential can be explained by variables other than race that are typically associated with unemployment, such as educational level and local labor market conditions. The predicted differential appears to be greatest among younger, less-skilled men.