Mismatch, Transport Mode and Search Decisions in England

42 Pages Posted: 5 Sep 2003

See all articles by Eleonora Patacchini

Eleonora Patacchini

Einaudi Institute for Economics and Finance (EIEF) ; IZA Institute of Labor Economics

Yves Zenou

Monash University - Department of Economics; Stockholm University; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: July 2003

Abstract

We develop a theoretical model in which whites mainly use private vehicles to commute whereas non-whites use public transportation. We show that, for whites and non-whites, higher (time) distance-to-jobs leads to lower search effort. Because of different transport modes, we also show that, at exactly the same (time) distance-to-jobs, white unemployed workers search more intensively than non-whites because it less costly for them to gather information about jobs. We then test this model using English sub-regional data. We find that, for each race, living in areas where distance-to-jobs is higher means the unemployed search less than in areas with better job access. We also find that having access to a car increases search intensity for both whites and non-whites. Finally, closing the racial gap in car access and distance-to-jobs would considerably narrow the difference in search intensities between whites and non-whites.

Keywords: Job access, ethnic minorities, job search, spatial econometrics

JEL Classification: C21, J15, J64, R10

Suggested Citation

Patacchini, Eleonora and Zenou, Yves, Mismatch, Transport Mode and Search Decisions in England (July 2003). Available at SSRN: https://ssrn.com/abstract=439840

Eleonora Patacchini

Einaudi Institute for Economics and Finance (EIEF) ( email )

Via Due Macelli, 73
Rome, 00187
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Yves Zenou (Contact Author)

Monash University - Department of Economics ( email )

Australia

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Research Institute of Industrial Economics (IUI) ( email )

P.O. Box 5501
S-114 85 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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