EconPapers    
Economics at your fingertips  
 

Car ownership and the labor market of ethnic minorities

Pieter Gautier () and Yves Zenou ()

Journal of Urban Economics, 2010, vol. 67, issue 3, 392-403

Abstract: We show how initial wealth differences between low-skilled minorities and white workers can generate differences in their labor-market outcomes. This even occurs in the absence of a taste for discrimination against ethnic minorities or exogenous differences in distance to jobs. Because of the initial wealth difference, minorities cannot afford to buy a car while whites can. Car ownership allows whites to reach more jobs per unit of time, which gives them a better bargaining position in the labor market. As a result, in equilibrium, ethnic minorities end up with both higher unemployment rates and lower wages than whites. Furthermore, we also show that it takes more time for minorities to reach their jobs even though they travel less miles when employed. Those predictions are consistent with the data. Better access to capital markets or better public transportation will reduce the differences in labor-market outcomes.

Keywords: Transportation; mismatch; Job; search; Spatial; labor; markets; Multiple; job; centers; Ethnic; minorities (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094-1190(09)00101-6
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Car Ownership and the Labour Market of Ethnic Minorities (2008) Downloads
Working Paper: Car Ownership and the Labor Market of Ethnic Minorities (2008) Downloads
Working Paper: Car ownership and the Labor Market of Ethnic Minorities (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:67:y:2010:i:3:p:392-403

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-03
Handle: RePEc:eee:juecon:v:67:y:2010:i:3:p:392-403