The Mechanisms of Spatial Mismatch

Gobillon, Laurent; Selod, Harris; Zenou, Yves

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The Mechanisms of Spatial Mismatch

CEPR Discussion Paper No. 5346

36 Pages Posted: 6 Jan 2006

See all articles by Laurent Gobillon

Laurent Gobillon

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); National Institute of Demographic Studies (INED)

National Institute for Agricultural Research (INRA); National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); The World Bank; Paris School of Economics (PSE); World Bank - Development Research Group (DECRG)

Yves Zenou

Monash University - Department of Economics; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR); Stockholm University

Date Written: November 2005

Abstract

The Spatial Mismatch Hypothesis (SMH) argues that low-skilled minorities residing in U.S. inner cities experience poor labour-market outcomes because they are disconnected from suburban job opportunities. This assumption gave rise to an abundant empirical literature, which confirmed this hypothesis. Surprisingly, however, it is only recently that theoretical models have emerged, which probably explains why the mechanisms of spatial mismatch have long remained unclear and not properly tested. In this survey, we present relevant facts, review the theoretical models of spatial mismatch, confront their predictions with available empirical results, and indicate which mechanisms deserve further empirical tests.

Keywords: Discrimination, urban unemployment, ghettos, segregation

JEL Classification: J15, J41, R14

Suggested Citation: Suggested Citation

Gobillon, Laurent and Selod, Harris and Zenou, Yves, The Mechanisms of Spatial Mismatch (November 2005). CEPR Discussion Paper No. 5346, Available at SSRN: https://ssrn.com/abstract=874056