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Although employment conditions in the Omaha SMSA present an overall view of relative prosperity and economic well-being, there is a wide disparity between black and white employment by occupation.2 This disparity, along with an equally disturbing income disparity between blacks and whites in similar occupation groups, merits the immediate attention of local businessmen, politicians, and concerned citizens.

In market terms, a common explanation for black-white employment and income differentials hinges on differences in educational (i .e., skill) levels. Hence, a person's employability potential is to a large extent a function of educational preparation, and one would expect rather wide black-white differentials. Accordingly, t h is study examines the black-white occupational and income distributions and attempts to determine whether different levels of working ability as measured by educational attainment is an adequate justification for existing disparities.