Contesting the Magic of the Market-place: Black Employment and Business Concentration in the Urban Context

Abstract

The spatial decentralisation of urban firms has been the primary focus of urbanists seeking to understand how Black employment is impacted by the changing nature of business in the US. Very little attention has been given to the impact of market concentration on Black employment in the urban environment. Using the most recent data available from the Equal Employment Opportunity Commission, the paper finds that Black male and female employment is positively associated with greater market concentration, not greater market competition as predicted by some neo-classical economists. There is little support for the contention that economic forces at work in competitive markets tend to minimise discrimination, either in the urban environment, or in the nation as a whole. The central city continues to be an important factor in Black employment because central-city firms are in industries with higher market concentration, which tend to employ more Black workers. However, increased market concentration is a crucial element in Black employment, regardless of industry location or worker occupation.