Working Paper: CEPR ID: DP3740
Authors: Laurent Gobillon; Harris Selod; Yves Zenou
Abstract: Since the 1950s, there has been a steady decentralization of entry-level jobs towards the suburbs of American cities, while racial minorities ? and particularly blacks ? have remained in city centres. In this context, the spatial mismatch hypothesis argues that because the residential locations of minorities are disconnected from suburban job opportunities, low-skilled minorities residing in inner cities face adverse labour market outcomes. The reason why distance to jobs may be harmful to minorities has, however, long remained unclear, while the abundant but essentially empirical literature on spatial mismatch has lead to much controversy. The present work presents the main stylized facts associated with spatial mismatch and reviews the main theoretical models that started to emerge in the late 1990s.
Keywords: discrimination; ghettos; segregation; urban unemployment
JEL Codes: J15; J41; R14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Spatial disconnection between residential locations of minorities and suburban job opportunities (R23) | Adverse labor market outcomes for minorities (J79) |
| Job decentralization (J62) | Spatial disconnection between residential locations of minorities and suburban job opportunities (R23) |
| Spatial disconnection (C49) | Lower employment rates for low-skilled minorities (J79) |
| Spatial disconnection (C49) | Lower wages for low-skilled minorities (J79) |
| Distance to jobs (R23) | Impair labor market outcomes for minorities (J79) |
| Information scarcity, search incentives, and commuting costs (D83) | Adverse labor market outcomes for minorities (J79) |