Working Paper: CEPR ID: DP5346
Authors: Laurent Gobillon; Harris Selod; Yves Zenou
Abstract: The Spatial Mismatch Hypothesis (SMH) argues that low-skilled minorities residing in U.S. inner cities experience poor labour-market outcomes because they are disconnected from suburban job opportunities. This assumption gave rise to an abundant empirical literature, which confirmed this hypothesis. Surprisingly, however, it is only recently that theoretical models have emerged, which probably explains why the mechanisms of spatial mismatch have long remained unclear and not properly tested. In this survey, we present relevant facts, review the theoretical models of spatial mismatch, confront their predictions with available empirical results, and indicate which mechanisms deserve further empirical tests.
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 |
|---|---|
| commuting costs (R48) | employment prospects of minorities (J15) |
| commuting costs (R48) | unemployment rates among inner-city minorities (J68) |
| increased commuting distances (R41) | unattractive net wages (J31) |
| increased commuting distances (R41) | job acceptance (M51) |
| distance to job opportunities (R23) | job search efficiency (J68) |
| distance to job opportunities (R23) | access to information about job vacancies (J68) |
| employer discrimination (J71) | unemployment among inner-city minorities (J68) |
| commuting costs, job search efficiency, employer discrimination (J68) | labor market disparities (J79) |