The spatial mismatch hypothesis: A review of recent studies and their implications for welfare reform

Abstract

In 1992, Housing Policy Debate published John Kain's comprehensive review of the extensive scholarly literature on the spatial mismatch hypothesis. This hypothesis maintains that the suburbanization of jobs and involuntary housing market segregation have acted together to create a surplus of workers relative to the number of available jobs in submetropolitan areas where blacks are concentrated. Since Kain's review, more than two dozen new studies on the spatial mismatch hypothesis have been completed. Generally, these studies use more suitable data and superior methodologies than earlier studies and therefore provide the most reliable evidence to date on the spatial mismatch hypothesis. This article critically reviews the new studies and assesses what implications can be drawn for welfare reform.