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The Effect of Segregation and Spatial Mismatch on Unemployment: Evidence from France

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  • Gobillon, Laurent
  • Selod, Harris

Abstract

In this paper, we investigate how residential segregation and bad physical access to jobs contribute to urban unemployment in the Paris region. We first survey the general mechanisms according to which residential segregation and spatial mismatch can have adverse labour-market outcomes. We then discuss the extent of the problem with the help of relevant descriptive statistics computed from the 1999 Census of the Population and from the 2000 General Transport Survey. Finally, we estimate the effect of indices of segregation computed at the neighbourhood and municipality levels, as well as job accessibility indices on the labour-market transitions out of unemployment using the 1990-2002 Labour Force Survey. Our results show that neighbourhood segregation is a key factor that prevents unemployed workers from finding a job. These results are robust to potential location endogeneity biases.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6198.

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Date of creation: Mar 2007
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Handle: RePEc:cpr:ceprdp:6198

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Keywords: residential segregation; sensitivity analysis; spatial mismatch; urban unemployment;

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References

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Citations

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Cited by:
  1. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouenan & Alain Trannoy, 2011. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Working Papers halshs-00624435, HAL.
  2. Martin Koning, 2010. "The Social Cost of Road Congestion in Ile-de-France Region (and France): Empirical Evidences from the Paris Ring-Road," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00467888, HAL.
  3. DUJARDIN Claire & SELOD Harris & THOMAS Isabelle, 2007. "Residential segregation and unemplyment : the case of Brussels," Research Unit Working Papers 0704, Laboratoire d'Economie Appliquee, INRA.
  4. Zenou, Yves, 2009. "Urban search models under high-relocation costs. Theory and application to spatial mismatch," Labour Economics, Elsevier, vol. 16(5), pages 534-546, October.
  5. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2007. "The Effect of Location on Finding a Job in the Paris Region," CEPR Discussion Papers 6199, C.E.P.R. Discussion Papers.
  6. Judith K. Hellerstein & David Neumark, 2011. "Employment in Black Urban Labor Markets: Problems and Solutions," NBER Working Papers 16986, National Bureau of Economic Research, Inc.
  7. Judith K. HELLERSTEIN & Melissa MC INERNEY & David NEUMARK, 2010. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," Annales d'Economie et de Statistique, ENSAE, issue 99-100, pages 141-167.
  8. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2007. "The Effect of Location on Finding a Job in the Greater Paris Area," IZA Discussion Papers 2848, Institute for the Study of Labor (IZA).
  9. Zenou, Yves, 2007. "High Relocation Costs in Search-Matching Models: Theory and Application to Spatial Mismatch," IZA Discussion Papers 2739, Institute for the Study of Labor (IZA).

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