Ethnic Unemployment Rates and Frictional Markets
AbstractThe unemployment rate in France is roughly 6 percentage points higher for African immigrants than for natives. In the US the unemployment rate is approximately 9 percentage points higher for blacks than for whites. Commute time data indicates that minorities face longer commute times to work, potentially reflecting more difficult access to jobs. In this paper we investigate the impact of spatial mismatch on the unemployment rate of ethnic groups using the matching model proposed by Rupert and Wasmer (2012). We find that spatial factors explain between 1 to 1.5 percentage points of the unemployment rate gap in both France and the US, amounting to 17% to 25% of the relative gap in France and about 10% in the US. Among these factors, differences in commuting distance plays the most important role. In France, though, longer commuting distances may be mitigated by higher mobility in the housing market for African workers. Overall, we still conclude that labor market factors remain the main explanation for the higher unemployment rate of Africans.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7448.
Length: 36 pages
Date of creation: Jun 2013
Date of revision:
Publication status: forthcoming in: Journal of Urban Economics, 2013
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Other versions of this item:
- Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2013. "Ethnic Unemployment Rates and Frictional Markets," CEPR Discussion Papers 9507, C.E.P.R. Discussion Papers.
- Laurent Gobillon & Peter Rupert & Etienne Wasmer, 2013. "Ethnic Unemployment Rates and Frictional Markets," PSE Working Papers halshs-00849074, HAL.
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-30 (All new papers)
- NEP-DEM-2013-06-30 (Demographic Economics)
- NEP-LAB-2013-06-30 (Labour Economics)
- NEP-MIG-2013-06-30 (Economics of Human Migration)
- NEP-URE-2013-06-30 (Urban & Real Estate Economics)
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