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Racial discrimination and redlining in cities

  • BOCCARD, Nicolas

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), 1348 Louvain la Neuve, Belgium)

  • ZENOU, Yves

    (CERAS, Ecole Nationale des Ponts et Chaussees GAINS, Universite du Maine)

We propose a model where employers have two types of prejudices: racial and spatial discriminations. Because of the rst one, black workers have less chance than white workers to nd a job. Because of the second one, workers living closer to the city-center have less chances than suburban workers to nd a job. In this context, we show that depending on the importance of access costs to employment centers two urban equilibria may emerge. In Equilibrium 1 (the access cost for blacks is quite large), black and white workers are totally separated while in Equilibrium 2 (the access cost for blacks is relatively small), workers are separated by their employment status (the unemployed versus the employed). We then study the labor market equilibrium and its interactions with the land market. We show in particular that both race and space matter to explain high unemployment rates among blacks.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999013.

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Date of creation: 25 Feb 1999
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Handle: RePEc:cor:louvco:1999013
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  1. Zenou, Yves, 1999. "Urban Unemployment, Agglomeration and Transportation Policies," CEPR Discussion Papers 2309, C.E.P.R. Discussion Papers.
  2. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  3. Mauer, David C. & Ott, Steven H., 1999. "On the Optimal Structure of Government Subsidies for Enterprise Zones and Other Locational Development Programs," Journal of Urban Economics, Elsevier, vol. 45(3), pages 421-450, May.
  4. Roland Benabou, 1991. "Workings of a City: Location, Education, and Production," NBER Technical Working Papers 0113, National Bureau of Economic Research, Inc.
  5. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
  6. Zenou, Yves & Smith, Tony E., 1995. "Efficiency wages, involuntary unemployment and urban spatial structure," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 547-573, August.
  7. Brueckner, Jan K. & Martin, Richard W., 1997. "Spatial mismatch: An equilibrium analysis," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 693-714, November.
  8. Raphael, Steven, 1998. "The Spatial Mismatch Hypothesis and Black Youth Joblessness: Evidence from the San Francisco Bay Area," Journal of Urban Economics, Elsevier, vol. 43(1), pages 79-111, January.
  9. Edward L. Glaeser & Bruce Sacerdote, 1996. "Why is There More Crime in Cities?," Harvard Institute of Economic Research Working Papers 1746, Harvard - Institute of Economic Research.
  10. Gannon, F. & Zenou, Y., . "Segregation and labor discrimination in cities," CORE Discussion Papers RP -1261, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Yinger, John, 1976. "Racial prejudice and racial residential segregation in an urban model," Journal of Urban Economics, Elsevier, vol. 3(4), pages 383-396, October.
  12. 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.
  13. Leonard, Jonathan S, 1996. "Wage Disparities and Affirmative Action in the 1980's," American Economic Review, American Economic Association, vol. 86(2), pages 285-89, May.
  14. Leonard, Jonathan S, 1990. "The Impact of Affirmative Action Regulation and Equal Employment Law on Black Employment," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 47-63, Fall.
  15. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  16. Eric Rasmusen, 1995. "``Stigma and Self-Fulfilling Expectations of Criminality''," Law and Economics 9506001, EconWPA.
  17. Rose-Ackerman, Susan, 1975. "Racism and urban structure," Journal of Urban Economics, Elsevier, vol. 2(1), pages 85-103, January.
  18. Courant, Paul N. & Yinger, John, 1977. "On models of racial prejudice and urban residential structure," Journal of Urban Economics, Elsevier, vol. 4(3), pages 272-291, July.
  19. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
  20. Ihlanfeldt Keith R., 1993. "Intra-urban Job Accessibility and Hispanic Youth Employment Rates," Journal of Urban Economics, Elsevier, vol. 33(2), pages 254-271, March.
  21. 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 267-76, March.
  22. Hartwick, John & Schweizer, Urs & Varaiya, Pravin, 1976. "Comparative statics of a residential economy with several classes," Journal of Economic Theory, Elsevier, vol. 13(3), pages 396-413, December.
  23. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 25-45, Fall.
  24. Scott South & Kyle Crowder, 1997. "Residential mobility between cities and suburbs: race, suburbanization, and back-to-the-city moves," Demography, Springer, vol. 34(4), pages 525-538, November.
  25. Brueckner, Jan K. & Zenou, Yves, 1999. "Harris-Todaro models with a land market," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 317-339, May.
  26. Helen F. Ladd, 1998. "Evidence on Discrimination in Mortgage Lending," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 41-62, Spring.
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