Most of the inmates in American's increasing prison and jail populations are low-skilled Black and Hispanic men under 40 years old. Devah Pager's study of employment discrimination in Milwaukee examined the hiring and wages of Blacks and Whites, some of whom were without criminal records and others who had criminal records. Whites without criminal records were significantly more likely than Blacks without criminal records to be called back after the initial employment contact; and those of both races who had criminal records were significantly less likely to be called back than those of both races without criminal records. Among the findings regarding wages were that limited access to career jobs reduced wage growth; felony status reduced employment opportunity by about 40 percent; incarceration history reduced wages by about 15 percent and rate of wage growth by about 33 percent due to ex-inmates irregular employment; and racial disparity in incarceration increased Black-White wage inequality by about 10 percent. Theoretical and policy implications focus on the deficits of incarceration sentencing policies that disproportionately affect minority races and suggest alternatives to such a policy. 5 tables and 3 figures