This study examines the minority experience of Japanese immigrants in prewar years in two different societies, Brazil and Canada. Data are adduced to test the applicability of the theory of the split labor market formulated by Edna Bonacich. The Japanese experience in the two countries lends empirical support to the theory. The study reveals a significant differentiation between the two countries in intergroup competition and conflict. The consequence, for the Japanese, of severe competition in Canada, is that they were almost completely excluded from the entire society. With the lack of notable economic competition in Brazil, discrimination and exclusion movements were not experienced (as in Canada) by the Japanese in that country.