Social Interactions, Ethnic Minorities and Urban Unemployment

Harris Selod () and Yves Zenou

Annals of Economics and Statistics, 2001, issue 63-64, 183-214

Abstract: We develop a model in which blacks' ethnic preferences can lead to adverse labor-market outcomes. Because of these preferences, we show that multiple equilibria emerge: they correspond to different urban structures observed in the US. By incorporating in this spatial structure a simple search model, we show that distance to jobs is crucial to the labor-market outcomes of ethnic minorities whereas it matters less for whites because of their strong inherited advantage in terms of history.

Date: 2001
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Working Paper: Social Interactions, Ethnic Minorities and Urban Unemployment (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2001:i:63-64:p:183-214

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