Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114030
Authors: 
Picard, Pierre M.
Zenou, Yves
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9166
Abstract: 
We develop a model where workers both choose their residential location (geographical space) and their social interactions (social space). In equilibrium, we show under which condition some individuals reside close to the job center while others live far away from it. Even though the two populations have the same characteristics and no group experiences any discrimination, we show that the majority group always has a lower unemployment rate than the minority group both when ethnic minorities reside close and far away from the city-center where jobs are located. This is because they have a larger and better-quality social network. This result is quite unique as it can explain the high unemployment rates of ethnic minorities both in European and American cities.
Subjects: 
social interactions
segregation
labor market
spatial mismatch
network size
JEL: 
A14
J15
R14
Z13
Document Type: 
Working Paper

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