Inequality and spatial mismatch in the urban labor market: Evidence for the Curitiba metropolitan region, Brazil

Abstract

Accessibility plays a fundamental role in improving urban economic equity, especially for disadvantaged communities. In many metropolitan areas of Brazil, accessibility relies on infrastructure unequally distributed, creating barriers to access opportunities in the urban labor market. This paper aims to identify sources of spatial mismatch and measure its effects on the labor market of the Curitiba Metropolitan Region (CMR), in Brazil. First, we measured the spatial imbalances of households and jobs by income classes and their effects on the spatial dissimilarity of accessibility to job opportunities. Second, we use econometric tools to evaluate how accessibility to the formal job sector affects individual earnings in the CMR labor market by wage quartile. We find evidence of strong spatial segregation for the poorest individuals from public transit network and from the formal job sector. The econometric results show there was roughly no accessibility premium for individual earnings for the poorest workers and positive effects for the richest workers in the CMR labor market. This set of empirical evidence suggest a spatial concentration of urban amenities that enhance economic inequality for the CMR.