While the continuing wage gap between men and women, Whites and non-Whites has been well documented, the purpose of this study was to examine the role which discrimination on the basis of race/ethnicity as well as sex plays in the setting of wages. Whether pay equity is an effective means of remedying race-based wage discrimination was also explored. A study by the Memphis State University (Tennessee) Center for Research on Women indicates that non-Whites were under-compensated for the work they performed. This wage dissimilarity was also reflected in an occupational dissimilarity between sexes and races. Occupations were examined according to the concentrations of specific groups within them, and average earnings by the percentage of specific groups in that occupation. The impact of education and experience on the hypothetical implementation of pay equity was reviewed. Pay equity for Blacks and Hispanics in New York State government employment was looked at by the Center for Women in Government, Rockefeller College, State University of New York, and revealed that job titles held by Black and Hispanic women were the most undervalued. A study by the University of Washington (Seattle) showed that regardless of the statistical mode used females and Black males were paid less for similar jobs even when other factors were taken into account. This study illustrated that while pay equity was a solution to race and sex based discrimination, the finding that wage differentials were tied to the job category pointed to a different set of issues: those of job segregation. The Service Employees International Union (SEIU), AFL-CIO, investigated race and sex discrimination in Los Angeles County employment policies and documented patterns of segregation on the basis of race and sex which perpetuate wage discrimination. The document contains 34 tables, 8 figures, and 9 appendixes providing data which support the findings of the National Committee on Pay Equity and the three case studies. References are also given. (PPB)