Using a decomposition methodology developed by Neumark and 1987 CPS data to investigate the regional differences in labor market discrimination in the United States, we find that there are minor regional differences in the wage gap between males and females and between blacks and whites. However, we find that there is large regional variation in the components of the wage gap that is due to labor market discrimination. We find that the regions with the largest wage gaps are not necessarily the regions with the largest labor market discrimination.