THE EARNINGS EFFECT OF ETHNIC LABOUR MARKET CONCENTRATION UNDER MULTI-RACIAL METROPOLITAN CONTEXTS IN THE UNITED STATES

Urban labour market segmentation along the lines of ethnicity/race has drawn considerable attention with the huge influx of immigration in the United States. Using data from the US 2000 Public Use Microdata Sample (PUMS), this study employs a multilevel approach (1) to compare job earnings of non-Hispanic White, Black, Hispanic and Asian workers in their respective concentrated and non-concentrated sectors and (2) to examine how metropolitan characteristics influence these earnings. The findings show that engaging in ethnic niche labour market sectors is the main source of earning inequalities among different ethnic groups. Structural conditions including ethnic composition, growth of immigration, racial residential segregation, economic structure and macroeconomic conditions vary across regional labour markets at the metropolitan area level and significantly affect job earnings between niche and non-niche sectors across racial/ethnic groups.