In lieu of an abstract, here is a brief excerpt of the content:

221 CHAPTER 10 Economic Restructuring, Black Deprivation, and the Problem of Drugs and Crime The process OF ECONOMIC RESTRUCTURING results in a fundamental change to the American economy. It involves a decline in manufacturing employment (which pays high wages) and an increase in service employment (which pays lower wages). This change has consequences both for employment opportunities for lower skilled workers and for the ability to earn an income to support a household. Such economic restructuring has severely impacted blue-collar workers in general and black workers in particular. The social and economic consequences of economic restructuring in the Detroit metropolitan area and the role played by race and place are the focus of this chapter. RACE, SPACE, AND DECLINING EMPLOYMENT OPPORTUNITIES Many blue-collar jobs that had, since World War II, constituted the economic backbone of Detroit and provided employment opportunities for Detroit’s residents had, by the 1980s, either vanished or moved to the suburbs (Kasarda, 1989). Thus, since the riots of 1967, newer and better job opportunities were located further away from black neighborhoods in Detroit, forcing black families to spend more time and money commuting to work or looking for work outside of black neighborhoods (Darden, 1986). Given that blacks in Detroit have more restricted residential location choices than whites, the cost associated with distance reduces access to some jobs. The net effect of these imposed travel costs is to reduce the effective wage that black city workers receive relative to suburban residents. Another cost imposed by the spatial separation of jobs and residences is that which central city blacks incur when searching for suburban employment, particularly in view of the limited information available about potential job opportunities. In addition, there is a tendency for employers to hire workers who reflect the racial character of the place of residence in which they are located—that is, there may also be an indirect effect of housing segregation on employment opportunities (Kain, 1968). The problems of black residents in the city of Detroit are intensified by the fact that employment opportunities in blue-collar, semiskilled, and low-skilled jobs moved to the 222| Chapter Ten suburbs so rapidly that a surplus of labor in these categories had developed in the city by 1980 (McDonald, 1981). In other words, there has been a substantial shift in the occupational mix of jobs in Detroit, like other central cities (Kasarda, 1989; Wilson, 1987). There has been a decline in craftsman, operative, and laborer categories, while professional, sales, clerical, and service employment has increased proportionally in the city (Wilson, 1987). This decline of jobs in central cities has been most pronounced in Detroit and other cities in the north central region. The City of Detroit’s Share of the Metropolitan Region’s Employment, 1967–2002 In 1967, Detroit had 35.8 percent of the region’s retail employment. The city also had 57.9 percent of the wholesale employment and 60.5 percent of the service jobs. However, by 2002, Detroit’s share of manufacturing employment had plummeted to 13.5 percent. Retail trade had fallen to 7.2 percent. Moreover, wholesale trade employment in Detroit dropped to 11.4 percent and Detroit’s share of service jobs decreased from 60.5 percent to 12.9 percent (table 26). The primary reason blacks have been impacted most severely economically is segregation, both occupational and residential. Black workers tend to be concentrated in production jobs, which is where the biggest industrial losses have occurred. Black production workers tend to be concentrated in older industrial plants, which are the ones most frequently closed (Darden et al., 1987). Indeed, the suburbs were clearly places of economic opportunity, as evident by the locations of both establishments and jobs. Compared to the city, the percentage of establishments ranged from 81.4 percent for health care and social assistance to 91.6 percent for administrative support and waste management. The percentage of total paid employees ranged from 56.5 percent for arts, entertainment, and recreation to 92.9 percent for retail trade. Table 26. Racial/ethnic differences in business ownership in Detroit, 2007 # of all firms # of all employer firms # of employees % of total ownership all firms % of total ownership employer firms % of total employees Total 50,911 6,554 69,894 White 15,668 4,957 55,471 30.7 75.6 79.4 Black 32,483 968 9,813 63.8 14.8 14.0 Hispanic* 316 70 374 0.6 1.1 0.5 Mexican...

Share