Space and Unemployment: The Labor-Market Effects of Spatial Mismatch

Jan Brueckner and Yves Zenou

Journal of Labor Economics, 2003, vol. 21, issue 1, 242-262

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.

Date: 2003
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Working Paper: Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:21:y:2003:i:1:p:242-241

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