This study investigates the market concentration/racial earnings discrimination relationship in two periods: 1984-90 and 1991-96. In each period, the racial wage gap and the residual wage gap are compared for union and nonunion workers in monopolistic and competitive industries. The authors find...

Theories of expense preference suggest that market power gives employers the latitude to engage in employment discrimination. Additionally, labor market theory indicates that discrimination should cause a larger decline in black employment for prevalent and easily replaced low-skill workers...