The Spatial Mismatch Hypothesis: Three Decades Later

TLDR

The paper reviews how housing market discrimination affects Afro‑American employment and earnings, and concludes with policy recommendations and future research directions. The review examines how limited residential choice and job dispersal contribute to Afro‑American employment and earnings gaps, and evaluates policy prescriptions in housing, employment, and schooling. The review assesses progress made since the spatial mismatch hypothesis was introduced and highlights the need for continued focus.

Abstract

Abstract This paper provides a comprehensive review of the extensive scholarly literature dealing with the effect of housing market discrimination on the employment and earnings of Afro‐American workers. From a historical perspective, it examines a variety of empirical studies that are as relevant today (particularly in light of recent events in Los Angeles) as they were when this discussion began nearly 30 years ago. More specifically, it reviews studies that have attempted to determine the extent to which serious limitations on black residential choice, combined with the steady dispersal of jobs from central cities, are responsible for the low rates of employment and low earnings of Afro‐American workers. The paper concludes with a discussion of policy recommendations and suggestions for continued areas of research. Three major categories in need of policy prescriptions are examined: housing, employment, and schooling. There is an assessment of the gains made since the inception of the spatial mismatch hypothesis as well as the need for continued focus.