And what effect do these industrial shifts have on the employability of city residents? The transformation has favored a more educated labor force over blue-collar or entry- level workers, and it has been most pronounced in the Northeast and Midwest, which house the greatest concentration of minority groups (Moss and Tilly, 1991; Kasarda, 1985, 1989, 1990). Moreover, the changes in the organization of production—in particu- lar, the advent of flexible work arrangements, the diminishing role of the internal labor market, the declining rate of unionization, and the growth of new ethnic small business enclaves—seem to have particular disadvantages for African-American males (Moss and Tilly, 1991)