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Social Interactions, Ethnic Minorities and Urban Unemployment

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  • Harris Selod

    (Crest)

  • Yves Zenou

    (Crest)

Abstract

We develop a model in which blacks' ethnic preferences can lead to adverse labor-market outcomes. Because of these preferences, we show that multiple equilibria emerge: they correspond to different urban structures observed in the US. By incorporating in this spatial structure a simple search model, we show that distance to jobs is crucial to the labor-market outcomes of ethnic minorities whereas it matters less for whites because of their strong inherited advantage in terms of history.
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Suggested Citation

  • Harris Selod & Yves Zenou, 2000. "Social Interactions, Ethnic Minorities and Urban Unemployment," Working Papers 2000-20, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2000-20
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    Cited by:

    1. Claire Dujardin & Florence Goffette-Nagot, 2005. "Neighborhood effects, public housing and unemployment in France," Post-Print halshs-00180046, HAL.
    2. Laurent Gobillon & Harris Selod, 2007. "The Effects of Segregation and Spatial Mismatch on Unemployment : Evidence from France," Working Papers 2007-04, Center for Research in Economics and Statistics.
    3. Joerg Heining & Joerg Lingens, "undated". "Social Interaction in Regional Labour Markets," Regional and Urban Modeling 283600034, EcoMod.
    4. Tolciu, Andreia, 2008. "Is unemployment a consequence of social interactions? Seeking for a common research framework for economists and other social scientists," HWWI Research Papers 1-15, Hamburg Institute of International Economics (HWWI).
    5. Andreia Tolciu, 2010. "The Economics of Social Interactions: An Interdisciplinary Ground for Social Scientists?," Forum for Social Economics, Taylor & Francis Journals, vol. 39(3), pages 223-242, January.
    6. Mary Burke & Gary Fournier, 2005. "The Emergence of Local Norms in Networks," Computing in Economics and Finance 2005 299, Society for Computational Economics.
    7. Joerg Lingens & Joerg Heining, 2006. "Social Interaction in Regional Labour Markets," ERSA conference papers ersa06p43, European Regional Science Association.

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