Do firms redline workers?

Diaz, Ana Maria; Salas, Luz Magdalena

doi:10.1016/j.regsciurbeco.2020.103541

Cited by 6 publications

(7 citation statements)

References 13 publications

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“…He conducts a correspondence study in the US capital Washington DC and finds, similar to us, that commuting time has a negative impact on the callback rate to job interviews, while a measure of the affluence of the residential area at the census tract level has no effect. Interestingly, using a similar design to Phillips (2020), Diaz and Salas (2020) find the same result for the Columbian capital, Bogotá. Other experimental studies that have investigated neighborhood effects on callback rates include Tunstall et al (2014), Bunel et al (2016), Carlsson et al (2018), andL'Horty et al (2019).…”

Section: Introductionsupporting

confidence: 57%

Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market*

Carlsson

Eriksson

2023

Scandinavian J Economics

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We investigate whether employers avoid hiring workers who live in neighborhoods with low socio‐economic status and/or with long commuting times. In a large‐scale field experiment in the Swedish labor market, we sent more than 4,000 fictitious résumés, with randomly assigned information about the applicants' residential locations, to firms with advertised vacancies. Our findings show that commuting time has a negative effect on the likelihood of being contacted by an employer, while the socio‐economic status of a neighborhood does not appear to be important. These results offer guidance for policymakers who are responsible for reversing segregation patterns.

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Section: Introductionsupporting

confidence: 57%

Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market*

Carlsson

Eriksson

2023

Scandinavian J Economics

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“…This result is in line with recent studies in France that seem to indicate relatively low levels of residential discrimination (Challe et al, 2018). Furthermore, our regressions control for commuting distance, which turns out to be one of the main components of the address penalty (Carlsson et al, 2018; Diaz and Salas, 2020; Phillips, 2018).…”

Section: Results Of the Testsmentioning

confidence: 99%

“…The study by Tunstall et al (2014), which covers three employment areas in the UK, concluded that there was no significant discrimination linked to residence in a neighbourhood considered poor. Finally, various studies such as those by Carlsson et al (2018), Diaz and Salas (2020) and Phillips (2018) find that it is essentially the commuting distance that negatively affects the chances of getting an interview.…”

Section: Place Of Residence and Access To Employment: An Overviewmentioning

confidence: 99%

Can subsidies paid directly to employers reduce residential discrimination in employment? An assessment based on serial field experiments

et al. 2021

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‘Emplois Francs’ is a new public policy in France that provides financial assistance to companies when they hire a jobseeker living in a disadvantaged neighbourhood. This study evaluates the effect of this policy by using three waves of correspondence tests spaced six months apart to measure discrimination in access to employment based on ethnic origin and place of residence. We find a substantial level of discrimination based on ethnic origin and a lower level of residential discrimination. We find that the programme decreases residential discrimination after six months, but we cannot conclude that the effect is still present 12 months later.

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“…While tractable, this assumption may fail to hold if employers care about commuting distance and its effects on productivity. For example,Diaz and Salas (2020) show that firms discriminate against workers that live further away from firms.…”

mentioning

confidence: 99%

City Minimum Wages and Spatial Equilibrium Effects

Pérez¹

2021

Preprint

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Local minimum wage laws are becoming common across U.S. cities, and their effects may be different from the effects of state or national minimum wage policies. This paper studies the effect of changes in the minimum wage on spatial equilibriums in local labor markets. Using residence and workplace data for the United States, I analyze how commuting, residence, and employment locations change across city and state borders if the minimum wage changes on one side of the border. I find that areas in which the minimum wage increases receive fewer low-wage commuters. A 10 percent increase in the minimum wage reduces the inflow of low-wage commuters by about 2.5 percent. Rises in the minimum wage are also associated with employment relocation across borders toward areas that did not witness an increase in the minimum wage. I formulate a spatial equilibrium gravity model to explain the distribution of workers between low- and high-minimum wage areas. I calculate counterfactual equilibriums with a higher minimum wage for U.S. counties with cities considering an increase, highlighting the role of commuting and migration responses. About two-fifths of the counties considering increases would receive fewer low-wage commuters. Employment relocation away from high-minimum wage areas drives the commuting losses.

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Do firms redline workers?

Cited by 6 publications

References 13 publications

Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market*

Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market*

Can subsidies paid directly to employers reduce residential discrimination in employment? An assessment based on serial field experiments

City Minimum Wages and Spatial Equilibrium Effects

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