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Moving to the Suburbs: Do Relocating Companies Leave Their Black Employees Behind?

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  • Zax, Jeffrey S
  • Kain, John F

Abstract

This article examines the responses of black and white workers to their employer's relocation from downtown Detroit to suburban Dearborn. Estimates of move and quit probabilities demonstrate that white employees whose commutes lengthened because of the relocation were more likely to move, but no more likely to quit, than white employees whose commute shortened. Black employees whose commutes lengthened were more likely to both move and quit in the wake of the relocation. In effect, the restrictions on black residential choice imposed by segregation forced approximately 11.3 percent of black workers to quit in the wake of the relocation. Copyright 1996 by University of Chicago Press.

Suggested Citation

  • Zax, Jeffrey S & Kain, John F, 1996. "Moving to the Suburbs: Do Relocating Companies Leave Their Black Employees Behind?," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 472-504, July.
  • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:3:p:472-504
    DOI: 10.1086/209819
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    References listed on IDEAS

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    1. Zax, Jeffrey S. & Kain, John F., 1991. "Commutes, quits, and moves," Journal of Urban Economics, Elsevier, vol. 29(2), pages 153-165, March.
    2. Yinger, John, 1986. "Measuring Racial Discrimination with Fair Housing Audits: Caught in the Act," American Economic Review, American Economic Association, vol. 76(5), pages 881-893, December.
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