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In this study, we examine the effect of access to employment opportunities on labour market outcomes, especially focusing on unemployment rates and household income in the Chicago metropolitan area during 2000–2010. Using accessibility measures derived from detailed employment data, we calculate job accessibility by race and income. In order to deal with the endogeneity problem, we employ instrumental variables with a generalised spatial two-stage least square (GS2SLS) model with fixed-effects. Our findings suggest that job accessibility plays a significant role in explaining unemployment rates and household income. Consistent with Kain’s spatial mismatch hypothesis, increases in job accessibility for African Americans lead to decreases in unemployment. Results also show that increased job accessibility for low-income households not only reduce unemployment but also improve household income.

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Recently, the improvement of job accessibility and the encouragement of mixed land use have been gaining popularity in the planning field. However, little is known about whether these two factors are able to meet housing consumers’ needs. This study aims to analyze how job accessibility and mixed land use satisfy housing consumers’ needs. Particularly, this study investigates housing consumers’ willingness to pay for these two features by using housing prices and rents in the Chicago metropolitan area. In order to deal with endogeneity between land use and housing prices and spatial autocorrelation between housing prices, spatial econometric models are used with instrumental variables. Interestingly, our findings show that an increase in job accessibility leads to an increase in housing prices, whereas it is not related to rents. We also found that mixed land use decreases housing prices, but increases rents.

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