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Urban Spatial Structure, Employment and Social Ties

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  • Pierre Picard
  • Yves Zenou

Abstract

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the two populations are ex ante totally identical, we find that the majority group experiences a lower unemployment rate than the minority group and tends to socially interact more with other workers of its own group. Within each group, we demonstrate that workers residing farther away from the job center tend to search less for a job and are less likely to be employed. This model is thus able to explain why ethnic minorities are segregated in the urban and social space and why this leads to adverse labor-market outcomes in the absence of any discrimination against the minority group.

Suggested Citation

  • Pierre Picard & Yves Zenou, 2015. "Urban Spatial Structure, Employment and Social Ties," ERSA conference papers ersa15p1493, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa15p1493
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    Cited by:

    1. Jun Sung Kim & Eleonora Patacchini & Pierre M. Picard & Yves Zenou, 2023. "Spatial interactions," Quantitative Economics, Econometric Society, vol. 14(4), pages 1295-1335, November.
    2. Kalee Burns & Julie L. Hotchkiss, 2019. "Migration Constraints and Disparate Responses to Changing Job Opportunities," FRB Atlanta Working Paper 2019-1, Federal Reserve Bank of Atlanta.
    3. Bailey, Michael & Farrell, Patrick & Kuchler, Theresa & Stroebel, Johannes, 2020. "Social connectedness in urban areas," Journal of Urban Economics, Elsevier, vol. 118(C).
    4. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    5. Kalee Burns & Julie L. Hotchkiss, 2023. "The Role of Social Costs in Response to Labor Market Opportunities: Differences across Race," FRB Atlanta Working Paper 2023-7, Federal Reserve Bank of Atlanta.
    6. Belchior, Carlos Alberto & Gonzaga, Gustavo & Ulyssea, Gabriel, 2023. "Unpacking Neighborhood Effects: Experimental Evidence from a Large-Scale Housing Program in Brazil," IZA Discussion Papers 16113, Institute of Labor Economics (IZA).
    7. Minoru Osawa & Jos'e M. Gaspar, 2020. "Production externalities and dispersion process in a multi-region economy," Papers 2001.05095, arXiv.org, revised May 2021.
    8. José Ignacio Gimenez-Nadal & José Alberto Molina & Jorge Velilla, 2016. "Spatial distribution of US employment in an urban wage-efficiency setting," Boston College Working Papers in Economics 890, Boston College Department of Economics.
    9. repec:fip:a00001:88147 is not listed on IDEAS
    10. Del Bello, Carlo L. & Patacchini, Eleonora & Zenou, Yves, 2015. "Neighborhood Effects in Education," IZA Discussion Papers 8956, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Social interactions; segregation; labor market; spatial mismatch.;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • 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
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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