Firm Turnover and the Return of Racial Establishment Segregation
JP Ferguson - Stanford University

Racial segregation between American workplaces (i.e., the fact that workplaces differ in the predominance of one race versus another) is greater today than it was a generation ago. We examine more than 40 years of data on the racial employment composition of every large private-sector workplace in the United States to calculate trends in racial employment segregation over time. We demonstrate that differences in racial segregation across firms (what is called “racial establishment segregation”) stems from differences in the turnover rates of more- and less-homogeneous workplaces. These findings suggest new paths toward reducing racial pay inequities that may arise from such racial establishment segregation.