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#2008-04 Residential Segregation and Labor-Market Outcomes: The Importance of Race, Gender and Marital Status
Author: Jenny B. Wahl, Department of Economics, Carlton College
Abstract: Nine of every
ten African-Americans lives in an urban area; the average black city dweller
resides in a highly segregated neighborhood. Urban residence and
neighborhood segregation may result from discrimination, personal choice, or
some combination of the two. Whatever the reason, racial segregation in housing
potentially affects employment and wage rates. My research
suggests that any analysis of residential segregation and labor-market outcomes
should account for gender and marital status as well as race and age.
Correcting for selection bias in wage regressions is also important; neglecting
to do so overestimates the racial wage gap. Among adults of all ages,
segregation in housing appears to have the most deleterious effect upon single
black male heads of household. Among individuals aged 20 to 30, residential
segregation has a negative impact upon the wages of black men but a positive
one on the wages of black women relative to their white counterparts.
Preliminary analysis indicates that more-educated blacks may suffer more from residential
segregation.