Do Minority/White Unemployment Differences Really Exist?

Abstract

We develop a model of labor force status (federal employment, nonfederal employment, unemployment, and out of the labor force) that depends on human capital variables, local labor market conditions, and personal characteristics. According to the estimated model for white non-Hispanic males and females a substantial difference exists between blacks and white non-Hispanics even after correction for the control variables. However, the control variables explain almost all of the difference between Hispanics and white non-Hispanics.