This paper investigates the role that homophily might play in explaining racial/ethnic disparities in the labor market. We find that Black and Hispanic workers are less responsive than White workers to changes in job opportunities, but responsiveness increases when those opportunities present themselves in locations with a higher share own-race population. The analysis makes use of restricted American Community Survey data, accessible through the Federal Statistical Research Data Centers, allowing us to include commuting zones that may otherwise not be identified because of suppressed location information in the public data
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Spatial Mismatch or Racial Mismatch?
June 2007
Working Paper Number:
CES-07-16
We contrast the spatial mismatch hypothesis with what we term the racial mismatch hypothesis - that the problem is not a lack of jobs, per se, where blacks live, but a lack of jobs into which blacks are hired, whether because of discrimination or labor market networks in which race matters. We first report new evidence on the spatial mismatch hypothesis, using data from Census Long-Form respondents. We construct direct measures of the presence of jobs in detailed geographic areas, and find that these job density measures are related to employment of black male residents in ways that would be predicted by the spatial mismatch hypothesis - in particular that spatial mismatch is primarily an issue for low-skilled black male workers. We then look at racial mismatch, by estimating the effects of job density measures that are disaggregated by race. We find that it is primarily black job density that influences black male employment, whereas white job density has little if any influence on their employment. This evidence implies that space alone plays a relatively minor role in low black male employment rates.
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Spatial Influences on the Employment of U.S. Hispanics: Spatial Mismatch, Discrimination, or Immigrant Networks?
January 2009
Working Paper Number:
CES-09-03
Employment rates of Hispanic males in the United States are considerably lower than employment rates of whites. In the data used in this paper, the Hispanic male employment rate is 61 percent, compared with 83 percent for white men.1 The question of the employment disadvantage of Hispanic men likely has many parallels to the question of the employment disadvantage of black men, where factors including spatial mismatch, discrimination, and labor market networks have all received attention as contributing factors. However, the Hispanic disadvantage has been much less studied, and the goal of this paper is to bridge that gap. To that end, we present evidence that tries to assess which of the three factors listed above appears to contribute to the lower employment rate of Hispanic males. We focus in particular on immigrant Hispanics and Hispanics who do not speak English well.
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Individual Social Capital and Migration
March 2018
Working Paper Number:
CES-18-14
This paper determines how individual, relative to community social capital affects individual migration decisions. We make use of non-public data from the Social Capital Community Benchmark Survey to predict multi-dimensional social capital for observations in the Current Population Survey. We find evidence that individuals are much less likely to have moved to a community with average social capital levels lower than their own and that higher levels of community social capital act as positive pull-factor amenities. The importance of that amenity differs across urban/rural locations. We also confirm that higher individual social capital is a negative predictor of migration.
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Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application
January 2007
Working Paper Number:
CES-07-03
Researchers have long recognized that the non-random sorting of individuals into groups generates correlation between individual and group attributes that is likely to bias naive estimates of both individual and group effects. This paper proposes a non-parametric strategy for identifying these effects in a model that allows for both individual and group unobservables, applying this strategy to the estimation of neighborhood effects on labor market outcomes. The first part of this strategy is guided by a robust feature of the equilibrium in the canonical vertical sorting model of Epple and Platt (1998), that there is a monotonic relationship between neighborhood housing prices and neighborhood quality. This implies that under certain conditions a non-parametric function of neighborhood housing prices serves as a suitable control function for the neighborhood unobservable in the labor market outcome regression. This control function converts the problem to a model with one unobservable so that traditional instrumental variables solutions may be applied. In our application, we instrument for each individual.s observed neighborhood attributes with the average neighborhood attributes of a set of observationally identical individuals. The neighborhood effects model is estimated using confidential microdata from the 1990 Decennial Census for the Boston MSA. The results imply that the direct effects of geographic proximity to jobs, neighborhood poverty rates, and average neighborhood education are substantially larger than the conditional correlations identified using OLS, although the net effect of neighborhood quality on labor market outcomes remains small. These findings are robust across a wide variety of specifications and robustness checks.
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Using Restricted-Access ACS Data to Examine Economic and Noneconomic Factors of Interstate Migration By Race and Ethnicity
March 2023
Working Paper Number:
CES-23-12
We explore how determinants of internal migration differ between Black non-Hispanics, White non-Hispanics, and Hispanics using micro-level, restricted-use American Community Survey (ACS) data matched to data on attributes of sub-geographies down to the county level. This paper extends the discussion of internal migration in the U.S. by not only observing relationships between economic and noneconomic factors and household-level propensities to migrate, but also how these relationships differ across race and ethnicity within smaller geographies than have been explored in previous literature. We show that when controlling for household and location characteristics, minorities have a lower propensity to migrate than White households and document nuances in the responsiveness of internal migration to individual and locational attributes by racial and ethnic population subgroups.
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Neighborhood Effects on High-School Drop-Out Rates and Teenage Childbearing: Tests for Non-Linearities, Race-Specific Effects, Interactions with Family Characteristics, and Endogenous Causation using Geocoded California Census Microdata
May 2008
Working Paper Number:
CES-08-12
This paper examines the relationship between neighborhood characteristics and the likelihood that a youth will drop out of high school or have a child during the teenage years. Using a dataset that is uniquely wellsuited to the study of neighborhood effects, the impact of the neighborhood poverty rate and the percentage of professionals in the local labor force on youth outcomes in California is examined. The first section of the paper tests for non-linearities in the relationship between indicators of neighborhood distress and youth outcomes. Some evidence is found for a break-point at low levels of poverty. Suggestive but inconclusive evidence is also found for a second breakpoint, at very high levels of poverty, for African-American youth only. The second part of the paper examines interactions between family background characteristics and neighborhood effects, and finds that White youth are most sensitive to neighborhood effects, while the effect of parental education depends on the neighborhood measure in question. Among White youth, those from single-parent households are more vulnerable to neighborhood conditions. The third section of the paper finds that for White youth and Hispanic youth, the relevant neighborhood variables appear to be the own-race poverty rates and the percentage of professionals of youths' own race. The final section of the paper estimates a tract-fixed effects model, using the results from the third section to define multiple relevant poverty rates within each tract. The fixed-effects specification suggests that for White and Hispanic youth in California, neighborhood effects remain significant, even with the inclusion of controls for any unobserved family and neighborhood characteristics that are constant within tracts.
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The Shifting Job Tenure Distribution
January 2016
Working Paper Number:
CES-16-12R
There has been a shift in the U.S. job tenure distribution toward longer-duration jobs since 2000. This change is apparent both in the tenure supplements to the Current Population Survey and in matched employer-employee data. A substantial portion of this shift can be accounted for by the ageing of the workforce and the decline in the entry rate of new employer businesses. This shift is accounted for more by declines in the hiring rate, which are concentrated in the labor market downturns associated with the 2001 and 2007-2009 recessions, rather than declines in separation rates. The increase in average real earnings since 2007 is less than what would be predicted by the shift toward longer-tenure jobs because of declines in tenure-held-constant real earnings. Regression estimates of the returns to job tenure provide no evidence that the shift in the job tenure distribution is being driven by better matches between workers and employers.
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A Warm Embrace or the Cold Shoulder: Wage and Employment Outcomes in Ethnic Enclaves
April 2008
Working Paper Number:
CES-08-09
This paper examines how immigrant enclaves influence labor market outcomes. We examine the effect of ethnic concentration on both immigrant earnings and employment in high immigration states using the non-public use, 1-in-6 sample of the 2000 U.S. Census. Although we find that there is some variability in the estimated enclave effects, they exhibit an overall negative impact. Male and female immigrants from several ethnic groups tend to earn lower wages when residing in areas with larger ethnic concentrations. Similarly, for employment, most of the statistically significant effects are negative, although much smaller than the enclave impacts on earnings.
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The Location of Displaced New Orleans Residents in the Year After Hurricane Katrina
September 2012
Working Paper Number:
CES-12-19
Using individual data from the restricted version of the American Community Survey, we examined the displacement locations of pre-Katrina adult residents of New Orleans in the year after the hurricane. Over half (53%) of adults had returned to'or remained in'the New Orleans metropolitan area, with just under one-third of the total returning to the dwelling in which they resided prior to Katrina. Among the remainder, Texas was the leading location with almost 40% of those living away from the metropolitan area (18% of the total), followed by other locations in Louisiana (12%), the South region of the US other than Louisiana and Texas (12%), and elsewhere in the U.S. (5%). Black adults were considerably more likely than nonblack adults to be living elsewhere in Louisiana, in Texas, and elsewhere in the South. The observed race disparity was not accounted for by any of the demographic or socioeconomic covariates in the multinomial logistic regression models. Consistent with hypothesized effects, we found that young adults (25'39 years of age) were more likely to move further away from New Orleans and that adults born outside Louisiana were substantially more likely to have relocated away from the state.
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Neighborhood Racial Status and White Out-Mobility
March 2026
Working Paper Number:
CES-26-19
Drawing on American Community Survey data, this study examines how whites' relative socioeconomic standing vis-'-vis nonwhite neighbors affects the association between minority presence and white out-mobility. Moving beyond the racial preferences versus racial proxy debate, we integrate group competition and contact theories with status theory to conceptualize 'racial status' as whites' first-order income rank relative to the subgroup status of Black, Hispanic, and Asian residents at the census tract level. Multilevel linear probability models show that whites lacking advantaged status are generally more likely to move. However, the positive association between Black or Asian concentration and white departure is weaker among status-disadvantaged whites, while the negative association with Hispanic concentration is stronger. These patterns lend greater support to contact theory than to group competition theory. By foregrounding relative status, the study demonstrates that racial and socioeconomic mechanisms are intertwined in shaping white residential mobility.
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