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Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?

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Author Info
Steven Raphael (Goldman School of Public Policy, University of California at Berkeley)
Michael Stoll (School of Public Policy and Social Research, University of California at Berkeley)

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Abstract

In this paper, we assess whether boosting minority car-ownership rates would narrow inter-racial employment rate differentials. We pursue two empirical strategies. First, we explore whether the effect of auto ownership on the probability of being employed is greater for more segregated groups of workers. Exploiting the fact that African-Americans are considerably more segregated from whites than are Latinos, we estimate car-employment effects for blacks, Latinos, and whites and test whether these effects are largest for more segregated groups. Second, we use data at the level of the metropolitan area to test whether the car-employment effect for blacks relative to that for whites increases with the degree of black relative isolation from employment opportunities. We find the strongest car effects for blacks, followed by Latinos, and then whites. Moreover, this ordering is statistically significant. We also find that the relative car-employment effect for blacks is largest in metropolitan areas where the relative isolation of blacks from employment opportunities is the most severe. Our empirical estimates indicate that raising minority car-ownership rates to the white car ownership rate would eliminate 45 percent of the black-white employment rate differential and 17 percent of the comparable Latinbo-white differential.

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Paper provided by Berkeley Program on Housing and Urban Policy in its series Berkeley Program on Housing and Urban Policy, Working Paper Series with number 1013.

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Date of creation: 27 Jun 2006
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Handle: RePEc:cdl:bphupl:1013

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  1. Steven Raphael & Lorien Rice, 2000. "Car Ownership, Employment, and Earnings," JCPR Working Papers 179, Northwestern University/University of Chicago Joint Center for Poverty Research.
  2. M. A. Stoll & H. J. Holzer & K. R. Ihlanfeldt, . "Within Cities and Suburbs: Racial Residential Concentration and the Spatial Distribution of Employment Opportunities across Submetropolitan Areas," Institute for Research on Poverty Discussion Papers 1189-99, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  3. Katherine O'Regan & John Quigley, 2006. "Spacial Isolation and Welfare Recipients: What Do We Know?," Berkeley Program on Housing and Urban Policy, Working Paper Series 1008, Berkeley Program on Housing and Urban Policy. [Downloadable!]
  4. Leslie E. Papke, 1993. "What Do We Know about Enterprise Zones?," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 37-72 National Bureau of Economic Research, Inc. [Downloadable!]
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  5. 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. [Downloadable!] (restricted)
  6. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May. [Downloadable!] (restricted)
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  1. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," CEPR Discussion Papers 3819, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Pascale Joassart-Marcelli & Alberto Giordano, 2006. "Does local access to employment services reduce unemployment? A GIS analysis of One-Stop Career Centers," Policy Sciences, Springer, vol. 39(4), pages 335-359, December. [Downloadable!] (restricted)
  3. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2001. "Why Are Black Employers More Likely to Hire African Americans than White Employers?," JCPR Working Papers 228, Northwestern University/University of Chicago Joint Center for Poverty Research.
  4. Phillip Granberry, Michael Landon and David Terkla, . "The Boston MPO Planning Process and Low-Income Suburban-to-Suburban Transportation Needs," Working Papers 5, University of Massachusetts Boston, Economics Department. [Downloadable!]
  5. James X. Sullivan, 2005. "Welfare Reform, Saving, and Vehicle Ownership: Do Asset Limits and Vehicle Exemptions Matter?," Staff Working Papers 05-117, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
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  6. Zenou, Yves, 2007. "Why do Black Workers Search Less? A Transport-Mode Based Theory," CEPR Discussion Papers 6155, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2005. "The mechanisms of spatial mismatch," CEPR Discussion Papers 5346, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2003. "Spatial Mismatch: From the Hypothesis to the Theories," IZA Discussion Papers 693, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Patacchini, Eleonora & Zenou, Yves, 2003. "Mismatch, Transport Mode and Search Decisions in England," CEPR Discussion Papers 3968, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Gautier, Pieter & Zenou, Yves, 2008. "Car Ownership and the Labor Market of Ethnic Minorities," IZA Discussion Papers 3814, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  11. Battu, Harminder & Sloane, Peter J., 2002. "Overeducation and Ethnic Minorities in Britain," IZA Discussion Papers 650, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Harry Holzer & John Quigley & Steve Raphael, 2001. "Public transit and spatial distribution of minority employment: evidence from a natural experiment," Proceedings, Federal Reserve Bank of Chicago, issue Apr. [Downloadable!]
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