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Ethnic Unemployment Rates and Frictional Markets

Authors: Gobillon, Laurent; Rupert, Peter; Wasmer, Etienne;

Ethnic Unemployment Rates and Frictional Markets

Abstract

The unemployment rate in France is roughly 6 percentage points higher for African immigrants than for natives. In the US the unemployment rate is approximately 9 percentage points higher for blacks than for whites. Commute time data indicates that minorities face longer commute times to work, potentially reflecting more difficult access to jobs. In this paper we investigate the impact of spatial mismatch on the unemployment rate of ethnic groups using the matching model proposed by Rupert and Wasmer (2012). We find that spatial factors explain 1-1.5 percentage points of the unemployment rate gap in both France and the US, amounting to 17-25% of the relative gap in France and about 10-17.5% in the US. Among these factors, differences in commuting distance play the most important role. In France, though, longer commuting distances may be mitigated by higher mobility in the housing market for African workers. Overall, we still conclude that labor market factors remain the main explanation for the higher unemployment rate of Africans.

Country
France
Keywords

Local markets, Frankreich, Arbeitslosigkeit, Schwarze, Real Estate, Ethnic groups, R23, spatial mismatch hypotheses, commuting, Discrimination, Rural, Spatial Mismatch, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, ddc:330, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Regional, and Transportation Economics/R.R2 - Household Analysis/R.R2.R23 - Regional Migration • Regional Labor Markets • Population • Neighborhood Characteristics, Kosten, spatial mismatch hypotheses, commuting, job acceptance, ethnic unemployment rates, Regionaler Arbeitsmarkt, JEL: R - Urban, Matching models, 330, discrimination; ethnic groups; local markets; matching model, Pendelverkehr, job acceptance, Matching model, Spatial mismatch, USA, J15, Saving, Production, Labor Markets, Ethnische Gruppe, J61, Discrimination,Ethnic groups,Local markets,Matching models, ethnic unemployment rates, and Informal Economy/E.E2.E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity, Investment, JEL: E - Macroeconomics and Monetary Economics/E.E2 - Consumption, jel: jel:E24, jel: jel:J61, jel: jel:R23, jel: jel:J15

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
22
Top 10%
Top 10%
Top 10%
Green
bronze