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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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Citations

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Cited by:
  1. Combes, Pierre-Philippe & Decreuse, Bruno & Laouénan, Morgane & Trannoy, Alain, 2014. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," IZA Discussion Papers 8150, Institute for the Study of Labor (IZA).
  2. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2007. "The Effect of Location on Finding a Job in the Paris Region," IDEI Working Papers 433, Institut d'Économie Industrielle (IDEI), Toulouse, revised Mar 2009.
  3. 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.
  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 Greater Paris Area," IZA Discussion Papers 2848, Institute for the Study of Labor (IZA).
  6. 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).
  7. 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.
  8. David Neumark & Helen Simpson, 2014. "Place-Based Policies," NBER Working Papers 20049, National Bureau of Economic Research, Inc.

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