Geographical Skills Mismatch, Job Search and Race

Abstract

This paper examines whether a geographical skills mismatch exists between the location of less-educated minorities, in particular African Americans, and high-skill job concentrations and, if so, whether it contributes to the relatively poor employment outcomes of this group. It explores these questions by examining data on the recent geographical search patterns of less-educated workers in Los Angeles and Atlanta from the Multi-city Study of Urban Inequality. These data are combined with employer data from the concurrent Multi-city Employer Survey to characterise the geographical areas searched by respondents with respect to high-skill job requirements. The results indicate that, in relation to less-educated Whites, comparable Blacks and Latinos search in areas with higher levels of job skill requirements. Moreover, racial residential segregation as well as Blacks' lower car access rates account for most of Blacks' (but not Latinos') relatively greater mismatch. Evidence is also found that such a geographical skills mismatch is negatively related to employment and accounts for a significant share of the racial differences in employment.