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Ethnic Differentials on the Labor Market in the Presence of Asymmetric Spatial Sorting : Set Identification and Estimation

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  • Roland Rathelot

    () (CREST)

Abstract

This paper aims to isolate the ethnic gap on the labor market that can be attributed to ethnicity and not to differences in individual characteristics or residential location. Controlling for residential location is important as ethnic minorities often live in distressed neighborhoods. It is also challenging because spatial sorting is likely to differ across ethnicities because of labor- or housing-market discrimination. This paper shows that controlling for neighborhoods and observed individual characteristics fails to pro-vide a consistent estimate for the component of the gap accountable to ethnicity only. However, under some assumptions, the quantity of interest is set identified even when heterogeneous sorting patterns across ethnicities are allowed for and the set estimate can still be informative. A two-step estimation method is presented and applied to explain the ethnic employment differential in France, between French individuals of North African ancestry and those with non-immigrant parents. Most of the gap is not due to differences in residential location or individual characteristics, but rather to ethnicity itself

Suggested Citation

  • Roland Rathelot, 2014. "Ethnic Differentials on the Labor Market in the Presence of Asymmetric Spatial Sorting : Set Identification and Estimation," Working Papers 2014-09, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2014-09
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Romain Aeberhardt & Élise Coudin & Roland Rathelot, 2017. "The heterogeneity of ethnic employment gaps," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 307-337, January.
    2. repec:spr:demogr:v:55:y:2018:i:4:d:10.1007_s13524-018-0689-0 is not listed on IDEAS
    3. repec:eee:juecon:v:104:y:2018:i:c:p:77-93 is not listed on IDEAS
    4. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.
    5. Picard, Pierre M. & Zenou, Yves, 2018. "Urban spatial structure, employment and social ties," Journal of Urban Economics, Elsevier, vol. 104(C), pages 77-93.
    6. Martin Abel, 2017. "Labor market discrimination and sorting: Evidence from South Africa," SALDRU Working Papers 205, Southern Africa Labour and Development Research Unit, University of Cape Town.

    More about this item

    Keywords

    ethnic employment gaps; spatial sorting; set identification; discrimination; spatial mismatch;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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