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

Jan K. Brueckner and Yves Zenou
Journal of Labor Economics
Vol. 21, No. 1 (January 2003), pp. 242-262
DOI: 10.1086/344129
Stable URL: http://www.jstor.org/stable/10.1086/344129
Page Count: 25
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Space and Unemployment: The Labor‐Market Effects of Spatial Mismatch
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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.

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