This research report explored the extent to which occupational differences between whites and blacks are due to education (and other universalistic criteria) versus the extent to which they are due to outright racial discrimination in hiring and promotion practices. Previous research findings might be used to conclude that attempts to reduce racial inequality through expanded educational opportunity is a relatively poor and low-yielding investment. However, data from the Bureau of Labor Statistics were used to examine the possibilities of reducing white-nonwhite occupational differences through higher educational levels of minority groups. Findings suggested two policy implications: (1) Attempts to increase educational attainment should be focused at the college level, and (2) Direct enforcement of anti-discrimination should be focused on middle status jobs which are normally filled with high school graduates. (Author/DM)