The aim of this paper is to bring together spatial and racial discriminatio
n in an urban framework. While racial discrimination is against black worke
rs, spatial discrimination (or redlining) is against residents living in th
e city-center. When the relative access cost for black workers to employmen
t centers is sufficiently large, a city is segregated by race. When the rel
ative access cost is sufficiently small, a city is segregated by employment
status. By examining the interaction between land and labor markets, the a
uthors find that both race and space are responsible for the high unemploym
ent rate among blacks. (C) 2000 Academic Press.