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Does City Structure Affect the Labor Market Outcomes of Black Workers?

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Author Info
Selod, Harris (INRA-LEA and CREST-LEI)
Zenou, Yves () (IUI, University of Southampton and IZA Bonn)

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Abstract

In this paper, location choices are driven by households (both blacks and whites) consciously choosing to trade off proximity to neighbors of similar racial backgrounds for proximity to jobs. Because of coordination failures in the location choices, multiple urban equilibria emerge. There is a ‘Spatial-Mismatch Equilibrium’ in which blacks reside far away from jobs and experience high unemployment rates and a ‘Spatial-Matching Equilibrium’ in which blacks are closer to jobs and experience lower unemployment rates. Under some reasonable condition, we demonstrate that all workers are better off under the Spatial-Matching Equilibrium, leaving a role for policy intervention.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 928.

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Length: 40 pages
Date of creation: Nov 2003
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Handle: RePEc:iza:izadps:dp928

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Related research
Keywords: spatial mismatch; multiple equilibria; racial preferences; social networks; labor discrimination;

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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
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
  4. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2003. "Spatial Mismatch: From the Hypothesis to the Theories," IZA Discussion Papers 693, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Calvo-Armengol, Antoni, 2004. "Job contact networks," Journal of Economic Theory, Elsevier, vol. 115(1), pages 191-206, March. [Downloadable!] (restricted)
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  7. Topa, Giorgio, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 68(2), pages 261-95, April.
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  8. Glenn C. Loury, 2000. "Social Exclusion and Ethnic Groups: The Challenge to Economics," Boston University - Institute for Economic Development 106, Boston University, Institute for Economic Development.
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  10. Calvó-Armengol, Antoni & Zenou, Yves, 2001. "Job Matching, Social Network and Word-of-Mouth Communication," Seminar Papers 695, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  11. Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September. [Downloadable!] (restricted)
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  15. Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March. [Downloadable!] (restricted)
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  21. Stoll, Michael A., 1999. "Spatial Job Search, Spatial Mismatch, and the Employment and Wages of Racial and Ethnic Groups in Los Angeles," Journal of Urban Economics, Elsevier, vol. 46(1), pages 129-155, July. [Downloadable!] (restricted)
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  23. Raphael, Steven & Stoll, Michael A. & Holzer, Harry J., 2000. "Are Suburban Firms More Likely to Discriminate against African-Americans?," Journal of Urban Economics, Elsevier, vol. 48(3), pages 485-508, November. [Downloadable!] (restricted)
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  24. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-52, June. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eleonora Patacchini & Yves Zenou, 2006. "Racial Identity and Education," IZA Discussion Papers 2046, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," CEPR Discussion Papers 3819, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2005. "Oppositional Identities and the Labor Market," Working Paper Series 649, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  4. Smith, Tony E & Zenou, Yves, 2003. "Spatial Mismatch, Search Effort and Urban Spatial Structure," CEPR Discussion Papers 3731, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2006. "'Bend It Like Beckham': Identity, Socialization and Assimilation," CEPR Discussion Papers 5662, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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This page was last updated on 2009-11-23.

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