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Published on: March 13, 2014
Race, spatial mismatch, and job accessibility: evidence from a plant relocation
1Massachusetts Institute of Technology, Sloan School of Management, 50 Memorial Drive E52-537, Cambridge, MA 2142, USA. robertof@mit.edu
Social Science Research
|December 17, 2008
Summary
Racial housing segregation, not employer bias, significantly hinders minority labor market success. This study confirms the spatial mismatch hypothesis by analyzing a plant relocation, showing segregated housing alone creates job accessibility disparities.
Area of Science:
- Labor Economics
- Urban Sociology
- Racial Disparities
Background:
- The spatial mismatch hypothesis explains minority labor market underachievement.
- John Kain's original theory focused on housing segregation's impact, assuming race-neutral employers.
Purpose of the Study:
- To test Kain's original spatial mismatch hypothesis.
- To analyze the impact of housing segregation on labor market outcomes using a natural experiment.
Main Methods:
- Longitudinal case study of a relocating food processing plant.
- Treated relocation as an exogenous demand-side shock.
- Controlled for selective migration and employer discrimination motives.
Main Results:
- Found support for Kain's spatial mismatch hypothesis.
- Racially segregated housing markets significantly hampered minority adjustments post-relocation.
- Race differences in job accessibility were generated by housing segregation alone.
Conclusions:
- Housing segregation is a primary driver of labor market disparities, independent of employer bias.
- The spatial mismatch hypothesis, in its original form, remains a critical explanation for minority underachievement.
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