Market Structure and the Pattern of Black-Owned Firms

This article discusses the relationship between industrial concentration and the presence of black-owned firms. Strong evidence is found that more monopolistic industries have a smaller black presence. This demonstrates that the monopolistic industries in which black workers are known to face the worst discrimination are also the industries in which blacks face the highest structural entry barriers as entrepreneurs. Indeed, entry barriers may cause the monopolistic conditions which allow discrimination while simultaneously frustrating the entry of black entrepreneurs.