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Spatial factors and the employment of blacks at the firm level

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Author Info
H. J. Holzer
K. R. Ihlanfeldt

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Abstract

In this paper we use data from a new survey of over 3,000 employers in four major metropolitan areas to investigate the determinants of black employment and wages at the firm level. We focus specifically on two factors that are likely to influence the spatial distribution of black employment: the proximity of firms to the residential locations of various racial groups and to public transit. We also consider the effects on black employment of other factors, such as employers' skill needs and some likely determinants of their preferences across groups.

Our main finding is that employers' proximity to black residences and to public transit increases the likelihood that they will hire black employees. This is true even when we include detailed controls for the skills needed by employers and also for the race of customers and of those responsible for hiring, which independently affect the levels of black employment at firms.

Proximity to public transit and especially to black residences accounts for major portions of the higher black employment rates at central-city than suburban firms. The residential effects are relatively strong for employers who recruit through informal methods and weak for those who use newspapers, thus suggesting that information may play a role in the distance effects.

We also find some evidence that employers' proximity to black residential populations results in lower wages for workers.

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Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1086-96.

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Handle: RePEc:wop:wispod:1086-96

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-76, March. [Downloadable!] (restricted)
  2. Ihlanfeldt, Keith R & Young, Madelyn V, 1996. "The Spatial Distribution of Black Employment between the Central City and the Suburbs," Economic Inquiry, Oxford University Press, vol. 34(4), pages 693-707, October.
  3. Katherine O'Regan & John Quigley, 2006. "Spatial Effects upon Unemployment Outcomes: The Case of New Jersey Teenagers," Berkeley Program on Housing and Urban Policy, Working Paper Series 1058, Berkeley Program on Housing and Urban Policy. [Downloadable!]
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  4. Cutler, D.M. & Glaeser, E.L., 1995. "Are Ghettos Good or Bad?," Papers e-95-6, Stanford - Hoover Institution.
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  5. Carrington, William J & Troske, Kenneth R, 1998. "Interfirm Segregation and the Black/White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 231-60, April. [Downloadable!] (restricted)
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  6. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September. [Downloadable!] (restricted)
  7. Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-52, June. [Downloadable!] (restricted)
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  9. Card, David & Lemieux, Thomas, 1994. "Changing Wage Structure and Black-White Wage Differentials," American Economic Review, American Economic Association, vol. 84(2), pages 29-33, May. [Downloadable!] (restricted)
  10. Leonard, Jonathan S., 1987. "The interaction of residential segregation and employment discrimination," Journal of Urban Economics, Elsevier, vol. 21(3), pages 323-346, May. [Downloadable!] (restricted)
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  11. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May. [Downloadable!] (restricted)
  12. Nardinelli, Clark & Simon, Curtis, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 575-95, August. [Downloadable!] (restricted)
  13. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  14. Hughes, Mark Alan & Madden, Janice Fanning, 1991. "Residential segregation and the economic status of black workers: New evidence for an old debate," Journal of Urban Economics, Elsevier, vol. 29(1), pages 28-49, January. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Steven Raphael & Michael A. Stoll & Harry J. Holzer, 1998. "Are Suburban Firms More Likely to Discriminate Against African-Americans?," University of California at San Diego, Economics Working Paper Series 98-05, Department of Economics, UC San Diego. [Downloadable!]
    Other versions:
  2. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers 1122-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
    Other versions:
  3. H. J. Holzer, . "Employer Demand, AFDC Recipients, and Labor Market Policy," Institute for Research on Poverty Discussion Papers 1115-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  4. H. J. Holzer, . "Employer hiring decisions and antidiscrimination policy," Institute for Research on Poverty Discussion Papers 1085-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  5. John Iceland & David R. Harris, 1998. "Why Work Disappears: Neighborhood Racial Composition and Employers' Relocation Intentions," JCPR Working Papers 45, Northwestern University/University of Chicago Joint Center for Poverty Research.
  6. Harry Holzer & Steven Raphael & Michael Stoll, 2006. "Will Employers Hire Ex-Offenders? Employer Checks, Background Checks, and Their Determinants," Berkeley Program on Housing and Urban Policy, Working Paper Series 1023, Berkeley Program on Housing and Urban Policy. [Downloadable!]
  7. H. J. Holzer & S. Danziger, . "Are Jobs Available for Disadvantaged Workers in Urban Areas?," Institute for Research on Poverty Discussion Papers 1157-98, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  8. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2001. "Why Are Black Employers More Likely to Hire African Americans than White Employers?," JCPR Working Papers 228, Northwestern University/University of Chicago Joint Center for Poverty Research.
  9. M. A. Stoll & H. J. Holzer & K. R. Ihlanfeldt, . "Within Cities and Suburbs: Racial Residential Concentration and the Spatial Distribution of Employment Opportunities across Submetropolitan Areas," Institute for Research on Poverty Discussion Papers 1189-99, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  10. Harry J. Holzer & Steven Raphael & Michael A. Stoll, 2001. "Will Employers Hire Ex-Offenders? Employer Preferences, Background Checks, and Their Determinants," JCPR Working Papers 238, Northwestern University/University of Chicago Joint Center for Poverty Research.
  11. Harry J. Holzer & Paul Offner, 2001. "Trends in Employment Outcomes of Young Black Men, 1979-2000," JCPR Working Papers 245, Northwestern University/University of Chicago Joint Center for Poverty Research.
  12. Harry J. Holzer, . "Black Applicants, Black Employees, and Urban Labor Market Policy," Institute for Research on Poverty Discussion Papers 1162-98, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  13. H. J. Holzer, . "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  14. Katherine O'Regan & John Quigley, 2006. "Spacial Isolation and Welfare Recipients: What Do We Know?," Berkeley Program on Housing and Urban Policy, Working Paper Series 1008, Berkeley Program on Housing and Urban Policy. [Downloadable!]
  15. Gautier, Pieter & Zenou, Yves, 2008. "Car Ownership and the Labor Market of Ethnic Minorities," IZA Discussion Papers 3814, Institute for the Study of Labor (IZA). [Downloadable!]
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  16. Steven Raphael, 1997. "Inter and Intra-Ethnic Comparisons of the Central City Suburban Youth Employment Differential: Evidence from the Oakland Metropolitan Area," University of California at San Diego, Economics Working Paper Series 96-30r, Department of Economics, UC San Diego. [Downloadable!]
  17. H. J. Holzer & M. A. Stoll, . "Employer Demand for Welfare Recipients by Race," Institute for Research on Poverty Discussion Papers 1213-00, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
    Other versions:
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