Change search
ReferencesLink to record
Permanent link

Direct link
Car ownership and the labor market of ethnic minorities
Stockholm University, Faculty of Social Sciences, Department of Economics.
2010 (English)In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 67, no 3, 392-403 p.Article in journal (Refereed) Published
Abstract [en]

We show how initial wealth differences between low-skilled minorities and white workers can generate differences in their labor-market outcomes. This even occurs in the absence of a taste for discrimination against ethnic minorities or exogenous differences in distance to jobs. Because of the initial wealth difference, minorities cannot afford to buy a car while whites can. Car ownership allows whites to reach more jobs per unit of time, which gives them a better bargaining position in the labor market. As a result, in equilibrium, ethnic minorities end up with both higher unemployment rates and lower wages than whites. Furthermore, we also show that it takes more time for minorities to reach their jobs even though they travel less miles when employed. Those predictions are consistent with the data. Better access to capital markets or better public transportation will reduce the differences in labor-market outcomes.

Place, publisher, year, edition, pages
2010. Vol. 67, no 3, 392-403 p.
Keyword [en]
Transportation mismatch, Job search, Spatial labor markets, Multiple job centers, Ethnic minorities
National Category
URN: urn:nbn:se:su:diva-49269DOI: 10.1016/j.jue.2009.11.005ISI: 000275448900012OAI: diva2:379481
authorCount :2Available from: 2010-12-17 Created: 2010-12-13 Last updated: 2010-12-17Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Zenou, Yves
By organisation
Department of Economics
In the same journal
Journal of Urban Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 17 hits
ReferencesLink to record
Permanent link

Direct link