JOB DECENTRALIZATION WITH SUBURBAN HOUSING DISCRIMINATION - AN URBAN EQUILIBRIUM-MODEL OF SPATIAL MISMATCH

The spatial mismatch hypothesis, with its roots in the work of Kain (1 968, Quart. J. Econ. 82(2), 175-197), has received much recent attenti on from empirical researchers. Its basic premise is that differences i n job access between black and white workers have contributed to incre asing racial inequality in urban labor markets. While the initial evid ence was ambiguous, recent studies have established that differences i n job accessibility have worsened the labor market outcomes of minorit y workers. This paper develops an urban equilibrium model which allows for the analysis of the impact of job decentralization and suburban h ousing discrimination on the welfare of workers in a city. (C) 1997 Ac ademic Press.