Contesting the Magic of the Marketplace Black Employment and Business Concentration in the Urban Context.pdf

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.