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Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers

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  • Ihlanfeldt, Keith R
  • Young, Madelyn V

Abstract

This paper utilizes a unique data base to provide some rare evidence on wage variation within a metropolitan area. Positively-sloped wage gradients are found for both black and white employees of fast-food restaurants in Atlanta, Georgia. Blacks are found to work on that portion of the gradient where wage rates are lowest. Evidence on discrimination suggests that consumer prejudice affects the wages paid to black workers. As distance from the central business district center increases, the positive wage gradient effect is found to strongly dominate the negative effect on wages from greater consumer discrimination. Copyright 1994 by MIT Press.

Suggested Citation

  • Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-433, August.
    • Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:425-33
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    Cited by:

    1. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination and Employment Outcomes for Minority Workers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 835-867.
    2. Laurent Gobillon & Harris Selod & Yves Zenou, 2007. "The Mechanisms of Spatial Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2401-2427, November.
    3. Laouénan, Morgane, 2014. "'Can't Get Enough': Prejudice, Contact Jobs and the Racial Wage Gap in the US," IZA Discussion Papers 8006, Institute of Labor Economics (IZA).
    4. repec:wyi:journl:002155 is not listed on IDEAS
    5. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    6. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    7. Morgane Laouénan, 2013. "Un cas particulier de discrimination sur le marché du travail : l'accès aux emplois en contact avec le public," Économie et Statistique, Programme National Persée, vol. 464(1), pages 35-58.
    8. Laouénan, Morgane, 2017. "‘Hate at First Sight’: Evidence of consumer discrimination against African-Americans in the US," Labour Economics, Elsevier, vol. 46(C), pages 94-109.
    9. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    10. Tabuchi, Takatoshi, 2019. "Do the rich and poor colocate in large cities?," Journal of Urban Economics, Elsevier, vol. 113(C).
    11. Timothy Bates & David Howell, 1998. "The Declining Status of Minorities in the New York City Construction Industry," Economic Development Quarterly, , vol. 12(1), pages 88-100, February.
    12. DeBeaumont, Ronald, 2009. "Occupational differences in the wage penalty for obese women," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 344-349, March.
    13. Christopher Coyne & Justin Isaacs & Jeremy Schwartz, 2010. "Entrepreneurship and the taste for discrimination," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 609-627, August.
    14. TABUCHI Takatoshi, 2018. "Where Do the Rich Live in a Big City?," Discussion papers 18020, Research Institute of Economy, Trade and Industry (RIETI).
    15. Shihe Fu & Stephen L. Ross, 2013. "Wage Premia in Employment Clusters: How Important Is Worker Heterogeneity?," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 271-304.
    16. Stoll, Michael A., 1999. "Spatial Job Search, Spatial Mismatch, and the Employment and Wages of Racial and Ethnic Groups in Los Angeles," Journal of Urban Economics, Elsevier, vol. 46(1), pages 129-155, July.
    17. Richard W. Martin, 2001. "Spatial Mismatch and Costly Suburban Commutes: Can Commuting Subsidies Help?," Urban Studies, Urban Studies Journal Limited, vol. 38(8), pages 1305-1318, July.
    18. repec:hal:spmain:info:hdl:2441/2tlvpn71ve888pnch88db9g683 is not listed on IDEAS

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