Economic theory suggests that the lack of product market competition in non-competitive industries gives employers in these industries more latitude to employment discriminate relative to employers in fiercely competitive industries. This Small Grant for Exploratory Research (SGER) will utilize individual data from the Current Population Survey and industry data from the Census of Manufacturers and Manufactured Commodities to explore factors, which influence the racial composition of US industries. Particular emphasis will be given to examining the influence of product market competition on racial employment. The specification developed will measure the influence of both foreign and domestic competition on racial composition. Indeed, if the stated hypothesis holds true, competition, regardless of its source - international or domestic product markets- will reduce employers' ability to engage in racial preference hiring. Additionally, the developed empirical model will allow for labor supply and labor demand effects that may influence the racial composition of industries.
