The main thrust of the report is an analysis of racial unemployment differentials in the context of received theories of racial discrimination. Noting that the average duration of unemployment is similar for white and black males, the analytical emphasis is on the flow of new unemployment which is decomposed into turnover flows and conditional unemployment probabilities. The links between racial wage discrimination and racial unemployment differentials are also examined. The results include findings that differences in quit and layoff rates between the races are quite small, that the practice of wage discrimination or occupational segregation tends to widen racial unemployment differentials, and compensatory post-school training investments do not seem to be the main road to racial wage equality among males. The analysis did not support the dual market view of racial wage differences. (Author)