Civil Rights, Litigation, and the Location of Jobs

Abstract

This study attempts to determine if minority population density is a factor in the decision by firms to locate a new facility. By avoiding minorities, profit-maximizing firms lessen the probability of expensive affirmative action legal entanglements. Thus, rather than mitigate the problems associated with discrimination, affirmative action may instead worsen the plight of minorities. Our results suggest that this is indeed the case. (178, K31)