Black-White Segregation, Discrimination, and Home Ownership

The effect of discrimination on black-white racial segregation is studied using a confidential supplement of the Panel Study of Income Dynamics (PSID). Audit studies reveal that the rate of discrimination in rental housing is substantially higher than in owner-occupied housing. Thus, a variable indicating home ownership is used to proxy for the discrimination rate faced by blacks. The fixed-effects estimates of segregation imply that home ownership is associated with a decline in black-white segregation. This effect decreases slightly at higher income levels but increases substantially with the education of the head of household. Evidence is presented that the effect of discrimination on segregation disappears in cross-sectional data but reappears when using a panel and controlling for fixed-effects. The findings of this study suggest that increased government enforcement of fair housing laws may have a quantitatively different effect on different segments of society and that future research on racial segregation should emphasize the use of panel, as opposed to cross-sectional, data.housing, discrimination, segregation, DeRango

A Note on Commutes and the Spatial Mismatch Hypothesis

A number of empirical studies have tested the spatial mismatch hypothesis by examining the commuting times of blacks and whites. This note points out that the link between spatial mismatch and commuting times may be weak when employment probabilities decline as the distance from job site to residence increases. A simple spatial model of urban employment is developed in which a fixed number of agents live in the central city. Two examples are presented in which increased spatial mismatch may either increase or decrease the average commuting time of central city minorities, depending on the rate at which employment probabilities decline with distance.unemployment, insurance, compensation, older, workers, O'Leary, Wandner

Black-White Segregation, Discrimination, and Home Ownership

The effect of discrimination on black-white racial segregation is studied using a confidential supplement of the Panel Study of Income Dynamics (PSID). Audit studies reveal that the rate of discrimination in rental housing is substantially higher than in owner-occupied housing. Thus, a variable indicating home ownership is used to proxy for the discrimination rate faced by blacks. The fixed-effects estimates of segregation imply that home ownership is associated with a decline in black-white segregation. This effect decreases slightly at higher income levels but increases substantially with the education of the head of household. Evidence is presented that the effect of discrimination on segregation disappears in cross-sectional data but reappears when using a panel and controlling for fixed-effects. The findings of this study suggest that increased government enforcement of fair housing laws may have a quantitatively different effect on different segments of society and that future research on racial segregation should emphasize the use of panel, as opposed to cross-sectional, data

Earnings Losses for Injured Workers

This article address the question "What proportion of all injured workers received adequate wage replacement?