Racial Factors in Site Location and Employment Patterns of Japanese Auto Firms in America

The auto industry has traditionally been a major source of jobs and income for blacks. As jobs in U.S. companies decline, the newer Japanese plants, both manufacturers and suppliers, are not hiring blacks to a similar extent. The new American plants typically employ higher percentages of blacks than would be expected from their local laborsheds. This has resulted primarily from UAW contractual obligations to accept displaced workers. By contrast, the Japanese manufacturers and suppliers locate in areas with few blacks and hire fewer blacks than would be expected from the racial composition of their local laborsheds. While the data presented in this article have important policy implications, they do not themselves establish intent to discriminate because of the complexity of factors involved in plant site decisions. Nevertheless, there is a range of anecdotal data that do suggest that the Japanese have a taste for discrimination.