In the past three decades numerous studies have been conducted to document structural changes in the labor market and their impacts on occupational attainment at the national level. However, few systematic studies have been conducted to assess racial disparity in the labor market at the state level over time. As Massachusetts has become more racially diverse than ever before and is prepared for greater challenges in the global economy, the state has to make sure that its labor force is ready to embrace the challenges. Thus, it is critically important to review the historical patterns of racial disparity in the state labor market over time and to explore factors that may help address occupational disparity. Relying on the human capital theory, this study will use the state data from the Current Population Surveys to assess the extent of labor market segmentation and examine factors that may contribute to racial occupational attainment over time. (C) 2008 Western Social Science Association. Published by Elsevier Inc. All rights reserved.