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

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Author Info

  • Selod, Harris

    ()
    (Institut National de la Recherche Agronomique)

  • Zenou, Yves

    ()
    (Stockholm University)

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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Bibliographic 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
Date of revision:
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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References

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Citations

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Cited by:
  1. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," Working Paper Series 603, Research Institute of Industrial Economics.
  2. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2005. "Oppositional Identities and the Labor Market," Working Paper Series 649, Research Institute of Industrial Economics.
  3. 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.
  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.
  5. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2011. "Formation and persistence of oppositional identities," European Economic Review, Elsevier, vol. 55(8), pages 1046-1071.
  6. Patacchini, Eleonora & Zenou, Yves, 2006. "Racial Identity and Education," IZA Discussion Papers 2046, Institute for the Study of Labor (IZA).

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