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Space and unemployment: the labor-market effects of spatial mismatch

Space and unemployment: the labor-market effects of spatial mismatch
Space and unemployment: the labor-market effects of spatial mismatch
The aim of this article is to analyze the effects of housing discrimination on the wages and unemployment rates of black workers. The unemployment effect is first analyzed using a simple minimum-wage model. An efficiency-wage model is then adopted in order to endogenize both unemployment and wages. Under both models, suburban housing discrimination leads to a higher unemployment rate for blacks in the central city than in the suburbs. Under the efficiency-wage model, black wages are also lower in the center. The analysis thus generates a link between unemployment and a seemingly unrelated phenomenon: racial discrimination in the housing market.
0734-306X
242-266
Brueckner, Jan K.
c1f376cc-6fae-4e78-801d-6fe8f5f30235
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
Brueckner, Jan K.
c1f376cc-6fae-4e78-801d-6fe8f5f30235
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e

Brueckner, Jan K. and Zenou, Yves (2003) Space and unemployment: the labor-market effects of spatial mismatch. Journal of Labor Economics, 21 (1), 242-266.

Record type: Article

Abstract

The aim of this article is to analyze the effects of housing discrimination on the wages and unemployment rates of black workers. The unemployment effect is first analyzed using a simple minimum-wage model. An efficiency-wage model is then adopted in order to endogenize both unemployment and wages. Under both models, suburban housing discrimination leads to a higher unemployment rate for blacks in the central city than in the suburbs. Under the efficiency-wage model, black wages are also lower in the center. The analysis thus generates a link between unemployment and a seemingly unrelated phenomenon: racial discrimination in the housing market.

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Published date: 2003

Identifiers

Local EPrints ID: 33069
URI: https://eprints.soton.ac.uk/id/eprint/33069
ISSN: 0734-306X
PURE UUID: 5f71d4d0-e8b8-4d05-98b2-58b78cffadac

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Date deposited: 15 May 2006
Last modified: 17 Jul 2017 15:54

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