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Does City Structure Affect the Labor Market Outcomes of Black Workers?

Author Info

Listed author(s):
  • Selod, Harris

    ()

    (Institut National de la Recherche Agronomique)

  • Zenou, Yves

    ()

    (Monash University)

Abstract

In this paper, location choices are driven by households (both blacks and whites) consciously choosing to trade off proximity to neighbors of similar racial backgrounds for proximity to jobs. Because of coordination failures in the location choices, multiple urban equilibria emerge. There is a ‘Spatial-Mismatch Equilibrium’ in which blacks reside far away from jobs and experience high unemployment rates and a ‘Spatial-Matching Equilibrium’ in which blacks are closer to jobs and experience lower unemployment rates. Under some reasonable condition, we demonstrate that all workers are better off under the Spatial-Matching Equilibrium, leaving a role for policy intervention.

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File URL: http://ftp.iza.org/dp928.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 928.

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Length: 40 pages
Date of creation: Nov 2003
Publication status: published in: Journal of Urban Economics, 2013, 74, 113-132.
Handle: RePEc:iza:izadps:dp928
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Keywords: social networks; racial preferences; multiple equilibria; spatial mismatch; labor discrimination;

Find related papers by JEL classification:

  • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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Cited by:

  1. Patacchini, Eleonora & Zenou, Yves, 2006. "Racial Identity and Education," CEPR Discussion Papers 5607, C.E.P.R. Discussion Papers.
  2. Harminder Battu & McDonald Mwale & Yves Zenou, 2007. "Oppositional identities and the labor market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 643-667, July.
  3. Smith, Tony E. & Zenou, Yves, 2003. "Spatial mismatch, search effort, and urban spatial structure," Journal of Urban Economics, Elsevier, vol. 54(1), pages 129-156, July.
  4. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2011. "Formation and persistence of oppositional identities," European Economic Review, Elsevier, vol. 55(8), pages 1046-1071.
  5. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," Working Paper Series 603, Research Institute of Industrial Economics.
  6. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2006. "'Bend It Like Beckham': Identity, Socialization and Assimilation," CEPR Discussion Papers 5662, C.E.P.R. Discussion Papers.

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