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

Author Info

  • Selod, Harris

    ()

    (Institut National de la Recherche Agronomique)

  • Zenou, Yves

    ()

    (Stockholm 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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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
Date of revision:
Handle: RePEc:iza:izadps:dp928
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Keywords: spatial mismatch; multiple equilibria; racial preferences; social networks; 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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  25. Glenn C. Loury, 2000. "Social Exclusion and Ethnic Groups: The Challenge to Economics," Boston University - Institute for Economic Development 106, Boston University, Institute for Economic Development.
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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. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2005. "Oppositional Identities and the Labour Market," CEPR Discussion Papers 5351, C.E.P.R. Discussion Papers.
  3. 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.
  4. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," CEPR Discussion Papers 3819, C.E.P.R. Discussion Papers.
  5. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2011. "Formation and Persistence of Oppositional Identities," Research Papers in Economics 2011:16, Stockholm University, Department of Economics.
  6. Smith, Tony E. & Zenou, Yves, 2003. "Spatial Mismatch, Search Effort and Urban Spatial Structure," IZA Discussion Papers 692, Institute for the Study of Labor (IZA).

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