Abstract
The evidence presented here suggests that residential location has a strong impact on both white and black youth job probability. These results were obtained by estimating a multinomial logit model, which recognizes the joint endogeneity of employment and school enrollment, with data from the Chicago metropolitan area. Furthermore, according to our results, at a minimum, about a fifth of the black/white employment rate differential among Chicago’s youth can be attributed to residential segregation.
Highlights
One of the most debated issues regarding racial disparities in economic welfare is the affect of black population concentration within central cities on black employment
The probabilities estimated for blacks suggest the same spatial patterns as those found for whites: ( 1) all three employment probabilities are higher for black teenagers in the suburbs in comparison to the central city, with the magnitudes of the city-suburban differences on the whole as large as those observed for whites and statistically significant, exceptthose between thecity andWill County; (2) as for white females, spatial differences in conditional probabilities are smaller for out-of-school in comparison to in-school youth; and (3) school enrollment probabilities are similar among areas, except for Will County where the enrollmentrate was approximately nine percent lower than within the central city
The simultaneity between economic welfare and residential location may have biased the results of prior studies that haveinvestigated theeffectofintrametropolitan location on employment and earnings
Summary
One of the most debated issues regarding racial disparities in economic welfare is the affect of black population concentration within central cities on black employment. Cook County - outside city of Chicago Dupage County Kane County Lake County McHenry County Will County of Black and White Teenagers Having a Job sex, education level, occupational class, and employment status.
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