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Space and Unemployment: The Labor-Market Effects of Spatial Mismatch

Author

Listed:
  • Jan K. Brueckner

    (University of Illinois at Urbana-Champaign)

  • Yves Zenou

    (University of Southampton)

Abstract

The aim of this article is to analyze the effects of housing discrimination on the wages and unemployment rates of black workers. The unemployment effect is first analyzed using a simple minimum-wage model. An efficiency-wage model is then adopted in order to endogenize both unemployment and wages. Under both models, suburban housing discrimination leads to a higher unemployment rate for blacks in the central city than in the suburbs. Under the efficiency-wage model, black wages are also lower in the center. The analysis thus generates a link between unemployment and a seemingly unrelated phenomenon: racial discrimination in the housing market.

Suggested Citation

  • Jan K. Brueckner & Yves Zenou, 2003. "Space and Unemployment: The Labor-Market Effects of Spatial Mismatch," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 242-262, January.
    • Handle: RePEc:ucp:jlabec:v:21:y:2003:i:1:p:242-241
    DOI: 10.1086/344129
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    References listed on IDEAS

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    1. Price, Richard & Mills, Edwin, 1985. "Race and residence in earnings determination," Journal of Urban Economics, Elsevier, vol. 17(1), pages 1-18, January.
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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
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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