THE EFFECT OF COMMUTE TIME ON RACIAL EARNINGS INEQUALITY - A CASE-STUDY OF THE HOUSTON METROPOLITAN STATISTICAL AREA

Data from the United States Census confirm a substantial increase in t he racial earnings gap between 1980 and 1990. This paper examines data on whites and non-white wage and salary incomes in Houston TX for 198 0 and 1990. Data on time travelled to work is used to simulate what wo uld be the impact of shorter commute times on earnings inequality. The central finding is that a reduction in travel time from residence to work would cause a very small reduction in racial earnings and income inequality. This suggests that advances in urban transportation policy alone are not sufficient to solve the problem of racial earnings ineq uality.