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Are Suburban Firms More Likely to Discriminate Against African Americans?

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  • S. Raphael
  • M. A. Stoll
  • H. J. Holzer

Abstract

This paper presents a test of the hypothesis that employers in suburban locations are more likely to discriminate against African Americans than are employers located in central cities. Using a difference-in-difference framework, we compare central-city/suburban differences in racial hiring outcomes for firms where a white person is in charge of hiring (white employers, for short) to similar geographic differences in outcomes for firms where a black person is in charge of hiring (black employers). We find that both suburban black and white employers hire fewer blacks than their central-city counterparts. Moreover, the central-city/suburban hiring gap among black employers is as large as, or larger than, that of white employers. Suburban black employers, however, receive many more applications from blacks and hire more blacks than do white firms in either location.

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Bibliographic Info

Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1160-98.

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Handle: RePEc:wop:wispod:1160-98

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  1. O'Regan, Katherine M. & Quigley, John M., 1996. "Spatial Effects Upon Employment Outcomes: The Case of New Jersey Teenagers," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt6cw7b2w7, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  2. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, Springer, vol. 24(4), pages 135-143, June.
  3. Marc Bendick & Charles Jackson & Victor Reinoso, 1994. "Measuring employment discrimination through controlled experiments," The Review of Black Political Economy, Springer, Springer, vol. 23(1), pages 25-48, June.
  4. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1122-97, University of Wisconsin Institute for Research on Poverty.
  5. Timothy Bates, 1994. "Utilization of minority employees in small business: A comparison of nonminority and black-owned urban enterprises," The Review of Black Political Economy, Springer, Springer, vol. 23(1), pages 113-121, June.
  6. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, American Economic Association, vol. 80(1), pages 267-76, March.
  7. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162.
  8. Leonard, Jonathan S., 1987. "The interaction of residential segregation and employment discrimination," Journal of Urban Economics, Elsevier, vol. 21(3), pages 323-346, May.
  9. Michael A. Stoll, 1999. "Spatial mismatch, discrimination, and male youth employment in the Washington, DC area: Implications for residential mobility policies," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 77-98.
  10. David T. Ellwood, 1986. "The Spatial Mismatch Hypothesis: Are There Teenage Jobs Missing in the Ghetto?," NBER Chapters, in: The Black Youth Employment Crisis, pages 147-190 National Bureau of Economic Research, Inc.
  11. William Frey & Reynolds Farley, 1996. "Latino, Asian, and black segregation in U.S. metropolitan areas: Are multiethnic metros different," Demography, Springer, Springer, vol. 33(1), pages 35-50, February.
  12. Keith Ihlanfeldt, 1992. "Job Accessibility and the Employment and School Enrollment of Teenagers," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, W.E. Upjohn Institute for Employment Research, number jaes.
  13. Harry J. Holzer, . "Black Applicants, Black Employees, and Urban Labor Market Policy," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1162-98, University of Wisconsin Institute for Research on Poverty.
  14. H. J. Holzer & K. R. Ihlanfeldt, . "Spatial factors and the employment of blacks at the firm level," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1086-96, University of Wisconsin Institute for Research on Poverty.
  15. Ihlanfeldt, Keith R & Young, Madelyn V, 1996. "The Spatial Distribution of Black Employment between the Central City and the Suburbs," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 34(4), pages 693-707, October.
  16. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May.
  17. Steven Raphael, 1998. "Inter- and intra-ethnic comparisons of the central cityûsuburban youth employment differential: Evidence from the Oakland metropolitan area," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 505-524, April.
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Cited by:
  1. Nicolas Jacquemet & Constantine Yannelis, 2011. "Indiscriminate Discrimination : A correspondence Test for Ethnic Homophily in the Chicago Labor Market," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00587674, HAL.
  2. Hamermesh, Daniel S., 1999. "LEEping into the future of labor economics: the research potential of linking employer and employee data," Labour Economics, Elsevier, Elsevier, vol. 6(1), pages 25-41, March.
  3. Laurent Gobillon & Harris Selod & Yves Zenou, 2005. "The mechanisms of spatial mismatch," Research Unit Working Papers, Laboratoire d'Economie Appliquee, INRA 0510, Laboratoire d'Economie Appliquee, INRA.
  4. Harry J. Holzer & Steven Raphael & Michael A. Stoll, 2001. "Will Employers Hire Ex-Offenders? Employer Preferences, Background Checks, and Their Determinants," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 238, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. Harry J. Holzer & John M. Quigley & Steven Raphael, 2003. "Public transit and the spatial distribution of minority employment: Evidence from a natural experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 415-441.
  6. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, American Economic Association, vol. 94(4), pages 991-1013, September.
  7. Harry J. Holzer, . "Black Applicants, Black Employees, and Urban Labor Market Policy," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1162-98, University of Wisconsin Institute for Research on Poverty.
  8. repec:hal:cesptp:hal-00745109 is not listed on IDEAS
  9. repec:hal:journl:hal-00745109 is not listed on IDEAS
  10. Ted Mouw, 2002. "Are black workers missing the connection? The effect of spatial distance and employee referrals on interfirm racial segregation," Demography, Springer, Springer, vol. 39(3), pages 507-528, August.
  11. Selod, Harris & Zenou, Yves, 2003. "Does City Structure Affect the Labor Market Outcomes of Black Workers?," IZA Discussion Papers 928, Institute for the Study of Labor (IZA).
  12. Nicolas Jacquemet & Constantine Yannelis, 2012. "Indiscriminate Discrimination: A Correspondence Test for Ethnic Homophily in the Chicago Labor Market," PSE - Labex "OSE-Ouvrir la Science Economique", HAL hal-00745109, HAL.

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