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https://hdl.handle.net/2142/21393
Description
Title
An urban equilibrium model of spatial mismatch
Author(s)
Martin, Richard Wayne
Issue Date
1996
Doctoral Committee Chair(s)
Brueckner, Jan K.
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Labor
Sociology, Ethnic and Racial Studies
Language
eng
Abstract
The idea that there is a spatial dimension to the poor labor market outcomes of urban black residents has been understood for approximately thirty years. It was first put forth in the economic literature by Kain (1968) and has generated a consistent stream of discussion. Recently, in light of the continued decline of American central cities and the stagnation of black economic progress, there has been a resurgence of work on the issue, and a fairly extensive literature related to the spatial mismatch hypothesis now exists. However, this work is almost entirely empirical in nature; theoretical models of spatial mismatch are lacking. The goal of this thesis is to develop an urban equilibrium model that can analyze the welfare impacts of spatial mismatch on black and white residents of a city.
The outline of the thesis is as follows. Chapter 2 surveys the spatial mismatch literature, with an emphasis on the conceptual development of the hypothesis, rather than on the empirical results. Chapter 3 develops an urban equilibrium model of spatial mismatch with fixed wages and derives the welfare impacts of spatial mismatch on the black and white residents of the city. Chapter 4 extends the model to include an explicit labor market and derives the impact of spatial mismatch on the welfare of workers and on wages. The welfare results of the fixed and flexible wage cases are also compared. Chapter 5 uses the flexible wage model to analyze the effects of poor public transit access to suburban job sites on central city and suburban labor markets. Chapter 6 provides conclusions and suggestions for future research.
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