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Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch

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  • Zenou, Yves
  • Brueckner, Jan K.

Abstract

The aim of this paper is to analyse the effects of suburban housing discrimination on the wages and unemployment rates of black workers. In a duocentric city with efficiency wages, it is shown that, when blacks experience suburban housing discrimination, they face a higher unemployment rate in the central city than in the suburbs, also earning lower wages in the centre. An increase in commuting costs is shown to raise both these disparities, and a number of other results are established. The analysis thus generates a link between housing-market discrimination and a seemingly unrelated phenomenon: unemployment in the labour market. In doing so, the paper provides new insight into the spatial mismatch hypothesis.

Suggested Citation

  • Zenou, Yves & Brueckner, Jan K., 2000. "Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch," CEPR Discussion Papers 2397, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2397
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    More about this item

    Keywords

    Efficiency wages; Ethnic minorities; Location; Urban unemployment;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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