THE SUBSTITUTABILITY OF BLACK, HISPANIC, AND WHITE LABOR

This paper analyzes the extent of labor market competition among blacks, hispanics, and whites in the United States. The specification of a generalized Leontief production function leads to an empirically tractable system of input demand functions. The estimation of the demand system, using the 1976 Survey of Income and Education, reveals that (a) blacks and hispanics are complementary inputs; (b) hispanics and whites may also be complements; and (c) blacks and whites are not complements and may be substitutes.