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Racial discrimination and redlining in cities

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Author Info
BOCCARD, Nicolas
ZENOU, Yves

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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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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999013.

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Date of creation: 01 Mar 1999
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Handle: RePEc:cor:louvco:1999013

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Related research
Keywords: urban equilibrium; access costs; spatial discrimination; urban unemployment.;

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References listed on IDEAS
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  1. Rasmusen, Eric, 1996. "Stigma and Self-Fulfilling Expectations of Criminality," Journal of Law & Economics, University of Chicago Press, vol. 39(2), pages 519-43, October.
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  1. Jan K. Brueckner & Harris Selod, 2008. "A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries," Working Papers 070816, University of California-Irvine, Department of Economics. [Downloadable!]
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  2. Zenou, Yves, 2002. "How Do Firms Redline Workers?," IZA Discussion Papers 607, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Ethan Cohen-Cole, 2008. "Credit card redlining," Quantitative Analysis Unit Working Paper QAU08-1, Federal Reserve Bank of Boston. [Downloadable!]
  4. Stephen L. Ross, 2002. "Segregation and Racial Preferences: New Theoretical and Empirical Approaches," Working papers 2002-04, University of Connecticut, Department of Economics, revised Apr 2003. [Downloadable!]
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  5. Florence Goffette-Nagot & Claire Dujardin, 2005. "Neighborhood effects, public housing and unemployment in France," Working Papers 0505, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
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