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Are Suburban Firms More Likely to Discriminate Against African-Americans?

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  • Raphael, Steven
  • Stoll, Michael A.
  • HOLZER, HARRY J

Abstract

This paper presents a test of the hypothesis that employers in suburban locations are more likely to discriminate against African-Americans than 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 employer). We find that both suburban black and white employers hire fewer blacks than their central-city counterparts. Moreover, the suburban/central city 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.

Suggested Citation

  • Raphael, Steven & Stoll, Michael A. & HOLZER, HARRY J, 1998. "Are Suburban Firms More Likely to Discriminate Against African-Americans?," University of California at San Diego, Economics Working Paper Series qt9pq2t9hx, Department of Economics, UC San Diego.
  • Handle: RePEc:cdl:ucsdec:qt9pq2t9hx
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    1. 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, vol. 34(4), pages 693-707, October.
    2. 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.
    3. William Frey & Reynolds Farley, 1996. "Latino, Asian, and black segregation in U.S. metropolitan areas: Are multiethnic metros different," Demography, Springer;Population Association of America (PAA), vol. 33(1), pages 35-50, February.
    4. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    5. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-276, March.
    6. Katherine M. O'Regan & John M. Quigley, 1996. "Spatial effects upon employment outcomes: the case of New Jersey teenagers," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 41-64.
    7. Holzer, Harry J. & Reaser, Jess, 2000. "Black Applicants, Black Employees, and Urban Labor Market Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 365-387, November.
    8. 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.
    9. 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.
    10. Leonard, Jonathan S., 1987. "The interaction of residential segregation and employment discrimination," Journal of Urban Economics, Elsevier, vol. 21(3), pages 323-346, May.
    11. 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.
    12. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(4), pages 135-143, June.
    13. Marc Bendick & Charles Jackson & Victor Reinoso, 1994. "Measuring employment discrimination through controlled experiments," The Review of Black Political Economy, Springer;National Economic Association, vol. 23(1), pages 25-48, June.
    14. Harry J. Holzer & Keith R. Ihlanfeldt, 1996. "Spatial factors and the employment of blacks at the firm level," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 65-86.
    15. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 175-197.
    16. Keith Ihlanfeldt, 1992. "Job Accessibility and the Employment and School Enrollment of Teenagers," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number jaes, November.
    17. 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;National Economic Association, vol. 23(1), pages 113-121, June.
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    Cited by:

    1. Jacquemet, Nicolas & Yannelis, Constantine, 2012. "Indiscriminate discrimination: A correspondence test for ethnic homophily in the Chicago labor market," Labour Economics, Elsevier, vol. 19(6), pages 824-832.
    2. 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.
    3. Holzer, Harry J & Raphael, Steven & Stoll, Michael A, 2006. "Perceived Criminality, Criminal Background Checks, and the Racial Hiring Practices of Employers," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 451-480, October.
    4. 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.
    5. 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, vol. 94(4), pages 991-1013, September.
    6. Harry J. Holzer & Steven Raphael & Michael A. Stoll, 2001. "Will Employers Hire Ex-Offenders? Employer Preferences, Background Checks, and Their Determinants," JCPR Working Papers 238, Northwestern University/University of Chicago Joint Center for Poverty Research.
    7. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    8. Holzer, Harry J. & Reaser, Jess, 2000. "Black Applicants, Black Employees, and Urban Labor Market Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 365-387, November.
    9. repec:hal:journl:hal-00745109 is not listed on IDEAS
    10. Elaine McCrate, 2013. "Screening for honesty and motivation in the workplace: what can affirmative action do?," Chapters,in: Capitalism on Trial, chapter 15 Edward Elgar Publishing.
    11. repec:hal:cesptp:hal-00745109 is not listed on IDEAS
    12. Hamermesh, Daniel S., 1999. "LEEping into the future of labor economics: the research potential of linking employer and employee data," Labour Economics, Elsevier, vol. 6(1), pages 25-41, March.
    13. 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).
    14. Ted Mouw, 2002. "Are black workers missing the connection? The effect of spatial distance and employee referrals on interfirm racial segregation," Demography, Springer;Population Association of America (PAA), vol. 39(3), pages 507-528, August.

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    Keywords

    difference-in-difference;

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