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Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers

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  • Ihlanfeldt, Keith R
  • Young, Madelyn V

Abstract

This paper utilizes a unique data base to provide some rare evidence on wage variation within a metropolitan area. Positively-sloped wage gradients are found for both black and white employees of fast-food restaurants in Atlanta, Georgia. Blacks are found to work on that portion of the gradient where wage rates are lowest. Evidence on discrimination suggests that consumer prejudice affects the wages paid to black workers. As distance from the central business district center increases, the positive wage gradient effect is found to strongly dominate the negative effect on wages from greater consumer discrimination. Copyright 1994 by MIT Press.

Suggested Citation

  • Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-433, August.
  • Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:425-33
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    Cited by:

    1. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination and Employment Outcomes for Minority Workers," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 835-867.
    2. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    3. Laurent Gobillon & Harris Selod & Yves Zenou, 2007. "The Mechanisms of Spatial Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2401-2427, November.
    4. repec:wyi:journl:002155 is not listed on IDEAS
    5. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    6. Morgane Laouénan, 2013. "Un cas particulier de discrimination sur le marché du travail : l'accès aux emplois en contact avec le public," Économie et Statistique, Programme National Persée, vol. 464(1), pages 35-58.
    7. TABUCHI Takatoshi, 2018. "Where Do the Rich Live in a Big City?," Discussion papers 18020, Research Institute of Economy, Trade and Industry (RIETI).
    8. Laouénan, Morgane, 2017. "‘Hate at First Sight’: Evidence of consumer discrimination against African-Americans in the US," Labour Economics, Elsevier, vol. 46(C), pages 94-109.
    9. Shihe Fu & Stephen L. Ross, 2013. "Wage Premia in Employment Clusters: How Important Is Worker Heterogeneity?," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 271-304.
    10. 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.
    11. DeBeaumont, Ronald, 2009. "Occupational differences in the wage penalty for obese women," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 344-349, March.

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