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The Role of Social Costs in Response to Labor Market Opportunities: Differences across Race

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Abstract

Using the American Community Survey between 2005 and 2019, this paper investigates the role constraints to migration might play in explaining racial/ethnic disparities in the labor market. We find that Black workers are typically less responsive than White workers to changes in job opportunities, but responsiveness increases when those opportunities present themselves in locations with a higher share own-minority population. We construct an education/race specific Bartik shift-share instrument to control for potential endogeneity of growth in job opportunities.

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  • 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.
    • Handle: RePEc:fip:fedawp:96612
    DOI: 10.29338/wp2023-07
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    More about this item

    Keywords

    racial labor market disparities; migration costs; Delta index; social costs; place-based; people-based; mismatch;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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