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Reassessing the Spatial Mismatch Hypothesis

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  • David Card
  • Jesse Rothstein
  • Moises Yi

Abstract

Using Longitudinal Employer-Household Dynamics data, we demonstrate several facts that are not consistent with the "spatial mismatch" hypothesis that residential segregation and uneven distribution of jobs limit Black workers' opportunities. We show that (a) there is no Black-White gap in the firm premium component of wages in an Abowd-Kramarz-Margolis wage decomposition; (b) there are both more jobs and more good jobs within commuting distance of Black than White workers; and (c) Black workers' commutes are shorter. We conclude that geographic proximity to good jobs is not a major source of racial earnings gaps in major US cities today.

Suggested Citation

  • David Card & Jesse Rothstein & Moises Yi, 2024. "Reassessing the Spatial Mismatch Hypothesis," AEA Papers and Proceedings, American Economic Association, vol. 114, pages 221-225, May.
    • Handle: RePEc:aea:apandp:v:114:y:2024:p:221-25
    DOI: 10.1257/pandp.20241112
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    1. Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, vol. 43(1), pages 79-111, January.
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    Cited by:

    1. David Card & Jesse Rothstein & Moises Yi, 2026. "How Do Neighborhoods and Firms Affect Intergenerational Mobility?," Working Papers 26-18, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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