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Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch

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Author Info
Brueckner, Jan
Zenou, Yves

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Abstract

The aim of this paper is to analyse the effects of suburban housing discrimination on the wages and unemployment rates of black workers. In a duocentric city with efficiency wages, it is shown that, when blacks experience suburban housing discrimination, they face a higher unemployment rate in the central city than in the suburbs, also earning lower wages in the centre. An increase in commuting costs is shown to raise both these disparities, and a number of other results are established. The analysis thus generates a link between housing-market discrimination and a seemingly unrelated phenomenon: unemployment in the labour market. In doing so, the paper provides new insight into the spatial mismatch hypothesis.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2397.

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Date of creation: Mar 2000
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Handle: RePEc:cpr:ceprdp:2397

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Related research
Keywords: Efficiency Wages Ethnic Minorities Location Urban Unemployment

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

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  1. Brueckner, Jan K. & Martin, Richard W., 1997. "Spatial mismatch: An equilibrium analysis," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 693-714, November. [Downloadable!] (restricted)
  2. Coulson, N Edward & Laing, Derek & Wang, Ping, 2001. "Spatial Mismatch in Search Equilibrium," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 949-72, October. [Downloadable!] (restricted)
  3. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  4. Yinger, John, 1997. "Cash in Your Face: The Cost of Racial and Ethnic Discrimination in Housing," Journal of Urban Economics, Elsevier, vol. 42(3), pages 339-365, November. [Downloadable!] (restricted)
  5. Martin, Richard W., 1997. "Job Decentralization with Suburban Housing Discrimination: An Urban Equilibrium Model of Spatial Mismatch," Journal of Housing Economics, Elsevier, vol. 6(4), pages 293-317, December. [Downloadable!] (restricted)
  6. Brueckner, Jan K. & Zenou, Yves, 1999. "Harris-Todaro models with a land market," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 317-339, May. [Downloadable!] (restricted)
  7. Price, Richard & Mills, Edwin, 1985. "Race and residence in earnings determination," Journal of Urban Economics, Elsevier, vol. 17(1), pages 1-18, January. [Downloadable!] (restricted)
  8. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June. [Downloadable!] (restricted)
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  9. Mieszkowski, Peter & Mills, Edwin S, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-47, Summer. [Downloadable!] (restricted)
  10. Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics 390., Boston College Department of Economics. [Downloadable!]
  11. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
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  12. Smith, T.E. & Zenou, Y., 1996. "Dual Labor Markets, Urban Unemployment and Multicentric Cities," Papers 9618, Catholique de Louvain - Center for Operations Research and Economics.
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  13. Edwin S. Mills & Luan Sende Lubuele, 1997. "Inner Cities," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 727-756, June. [Downloadable!] (restricted)
  14. Ladd, Helen F, 1998. "Evidence on Discrimination in Mortgage Lending," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 41-62, Spring. [Downloadable!] (restricted)
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