Regional patterns of affirmative action compliance costs

In this paper we estimate the amount by which firms' labor costs are increased by compliance with affirmative action regulations imposed on federal contractors for 160 SMSAs in 1980. The paper focuses on determining the cause(s) for variation in these compliance costs across SMSAs and in identifying areas of high and low compliance cost. We find that compliance costs are lower in larger SMSAs, more rapidly growing SMSAs, and SMSAs that have relatively large proportions of minorities and females in the labor market.The authors would like to thank Fred Wildes and Long Gen Ying, both of San Diego State University, for their assistance on this project. In addition, support for Prof. Getis' work was provided by the National Science Foundation, Grant No. SES-9123832.This paper was presented at the annual conference of the Western Regional Science Association in Tucson, Arizona.