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Urban spatial structure, employment and social ties

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  • Picard, Pierre M.
  • Zenou, Yves

Abstract

Consider a model where workers from the majority and the minority group choose both their residential location (geographical space) and the intensity of their social interactions (social space). We demonstrate under which condition one group resides close to the job center while the other lives far away from it. Even though the two groups have the same characteristics and there is no discrimination in the housing or labor market, we show that the majority group can have a lower unemployment rate whenever it resides close to or far away from the workplace. This is because this group generates a larger and better-quality social network.

Suggested Citation

  • Picard, Pierre M. & Zenou, Yves, 2018. "Urban spatial structure, employment and social ties," Journal of Urban Economics, Elsevier, vol. 104(C), pages 77-93.
    • Handle: RePEc:eee:juecon:v:104:y:2018:i:c:p:77-93
    DOI: 10.1016/j.jue.2018.01.004
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    Cited by:

    1. Jun Sung Kim & Eleonora Patacchini & Pierre M. Picard & Yves Zenou, 2023. "Spatial interactions," Quantitative Economics, Econometric Society, vol. 14(4), pages 1295-1335, November.
    2. Kalee Burns & Julie L. Hotchkiss, 2019. "Migration Constraints and Disparate Responses to Changing Job Opportunities," FRB Atlanta Working Paper 2019-1, Federal Reserve Bank of Atlanta.
    3. Bailey, Michael & Farrell, Patrick & Kuchler, Theresa & Stroebel, Johannes, 2020. "Social connectedness in urban areas," Journal of Urban Economics, Elsevier, vol. 118(C).
    4. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    5. Kalee Burns & Julie L. Hotchkiss, 2023. "The Role of Social Costs in Response to Labor Market Opportunities: Differences across Race," FRB Atlanta Working Paper 2023-7, Federal Reserve Bank of Atlanta.
    6. Belchior, Carlos Alberto & Gonzaga, Gustavo & Ulyssea, Gabriel, 2023. "Unpacking Neighborhood Effects: Experimental Evidence from a Large-Scale Housing Program in Brazil," IZA Discussion Papers 16113, Institute of Labor Economics (IZA).
    7. Minoru Osawa & Jos'e M. Gaspar, 2020. "Production externalities and dispersion process in a multi-region economy," Papers 2001.05095, arXiv.org, revised May 2021.
    8. José Ignacio Gimenez-Nadal & José Alberto Molina & Jorge Velilla, 2016. "Spatial distribution of US employment in an urban wage-efficiency setting," Boston College Working Papers in Economics 890, Boston College Department of Economics.
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    10. Del Bello, Carlo L. & Patacchini, Eleonora & Zenou, Yves, 2015. "Neighborhood Effects in Education," IZA Discussion Papers 8956, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Social interactions; Segregation; Labor market; Spatial mismatch; Network size;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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