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  5. Reassessing the Spatial Mismatch Hypothesis

Reassessing the Spatial Mismatch Hypothesis

  • David Card
  • Jesse Rothstein
  • Moises Yi
AEA Papers and Proceedings
vol. 114, May 2024
(pp. 221-25)
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Abstract

Using Longitudinal Employer-Household Dynamics data, we demonstrate several facts that are not consistent with the "spatial mismatch" hypothesis that residential segregation and uneven distribution of jobs limit Black workers' opportunities. We show that (a) there is no Black-White gap in the firm premium component of wages in an Abowd-Kramarz-Margolis wage decomposition; (b) there are both more jobs and more good jobs within commuting distance of Black than White workers; and (c) Black workers' commutes are shorter. We conclude that geographic proximity to good jobs is not a major source of racial earnings gaps in major US cities today.

Citation

Card, David, Jesse Rothstein, and Moises Yi. 2024. "Reassessing the Spatial Mismatch Hypothesis." AEA Papers and Proceedings, 114: 221-25. DOI: 10.1257/pandp.20241112

Additional Materials

JEL Classification

  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J23 Labor Demand
  • J31 Wage Level and Structure; Wage Differentials
  • J71 Labor Discrimination
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics