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Can Boosting Minority Car-Ownership Rates Narrow Inter-Racial Employment Gaps?

  • Raphael, Steven
  • Stoll, Michael
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    In this paper, we assess whether boosting minority car-ownership rates would narrow inter-racial employment rate differentials. We pursue two empirical strategies. First, we explore whether the effect of auto ownership on the probability of being employed is greater for more segregated groups of workers. Exploiting the fact that African-Americans are considerably more segregated from whites than are Latinos, we estimate car-employment effects for blacks, Latinos, and whites and test whether these effects are largest for more segregated groups. Second, we use data at the level of the metropolitan area to test whether the car-employment effect for blacks relative to that for whites increases with the degree of black relative isolation from employment opportunities. We find the strongest car effects for blacks, followed by Latinos, and then whites. Moreover, this ordering is statistically significant. We also find that the relative car-employment effect for blacks is largest in metropolitan areas where the relative isolation of blacks from employment opportunities is the most severe. Our empirical estimates indicate that raising minority car-ownership rates to the white car ownership rate would eliminate 45 percent of the black-white employment rate differential and 17 percent of the comparable Latinbo-white differential.

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    Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt4fq193gk.

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    Date of creation: 01 Jun 2000
    Date of revision:
    Handle: RePEc:cdl:uctcwp:qt4fq193gk
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    1. O'Regan, Katherine M. & Quigley, John M., 1999. "Spacial Isolation and Welfare Recipients: What Do We Know?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt1mz642ft, Berkeley Program on Housing and Urban Policy.
    2. Michael A. Stoll & Harry J. Holzer & Keith R. Ihlanfeldt, 2000. "Within cities and suburbs: Racial residential concentration and the spatial distribution of employment opportunities across sub-metropolitan areas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 207-231.
    3. 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.
    4. Leslie E. Papke, 1993. "What Do We Know about Enterprise Zones?," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 37-72 National Bureau of Economic Research, Inc.
    5. Douglas Massey & Nancy Denton, 1989. "Hypersegregation in U.S. Metropolitan Areas: Black and Hispanic Segregation Along Five Dimensions," Demography, Springer, vol. 26(3), pages 373-391, August.
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