Abstract
ABSTRACTThis paper aims to examine whether the degree of residential segregation affects formal and informal employment of the Roma ethnic minority in Serbia. I exploit the within district variation in the percentage of Roma to identify the effect of residential segregation on labor market outcomes. The results show that Roma in more segregated census tracts are more likely to hold an informal job than Roma in less segregated census tracts. There is suggestive evidence that the positive effect of segregation is driven by the information spillovers between Roma. I do not find an effect of residential segregation on employment in the formal sector.
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