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Racial Discrimination and Redlining in Cities

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  • Zenou, Yves
  • Boccard, Nicolas

Abstract

We propose a model where employers have two types of prejudices: racial and spatial discriminations. Because of the rst one, black workers have less chance than white workers to nd a job. Because of the second one, workers living closer to the city-center have less chances than suburban workers to nd a job. In this context, we show that depending on the importance of access costs to employment centers two urban equilibria may emerge. In Equilibrium 1 (the access cost for blacks is quite large), black and white workers are totally separated while in Equilibrium 2 (the access cost for blacks is relatively small), workers are separated by their employment status (the unemployed versus the employed). We then study the labor market equilibrium and its interactions with the land market. We show in particular that both race and space matter to explain high unemployment rates among blacks.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 48 (2000)
Issue (Month): 2 (September)
Pages: 260-285

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Handle: RePEc:eee:juecon:v:48:y:2000:i:2:p:260-285

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Web page: http://www.elsevier.com/locate/inca/622905

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References

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  12. Frédéric GANNON & Yves ZENOU, 1997. "Segregation and Labor Discrimination in Cities," Annales d'Economie et de Statistique, ENSAE, ENSAE, issue 45, pages 233-249.
  13. Edward L. Glaeser & Bruce Sacerdote, 1996. "Why is There More Crime in Cities?," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1746, Harvard - Institute of Economic Research.
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  18. Leonard, Jonathan S, 1996. "Wage Disparities and Affirmative Action in the 1980's," American Economic Review, American Economic Association, American Economic Association, vol. 86(2), pages 285-89, May.
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  20. Brueckner, Jan K. & Zenou, Yves, 1999. "Harris-Todaro models with a land market," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(3), pages 317-339, May.
  21. Courant, Paul N. & Yinger, John, 1977. "On models of racial prejudice and urban residential structure," Journal of Urban Economics, Elsevier, Elsevier, vol. 4(3), pages 272-291, July.
  22. Brueckner, Jan K. & Martin, Richard W., 1997. "Spatial mismatch: An equilibrium analysis," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 27(6), pages 693-714, November.
  23. Helen F. Ladd, 1998. "Evidence on Discrimination in Mortgage Lending," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 41-62, Spring.
  24. Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, Elsevier, vol. 43(1), pages 79-111, January.
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