Racial differences in spatial job search patterns: Exploring the causes and consequences

In this paper, we present an analysis of the spatial job search patterns of black, white, and Latino workers in Los Angeles. We find that blacks and Latinos tend to search in areas where employment growth is low, whereas whites tend to search in areas where it is high. Moreover, over half of the mean racial and ethnic differences in the quality of spatial job search (as measured by mean employment growth in areas searched) is explained by racial residential segregation. In addition, racial segregation is a more important explanation of racial differences in spatial job search quality than systematic differences in social networks and job search methods, though these factors matter. Spatial job search quality has a positive and significant effect on the employment of whites and blacks, but not Latinos, and explains nearly 40 percent of the difference between white and black employment rates. These results are consistent with the existence of spatial mismatch in urban labor markets and imply that racial residential segregation limits the job opportunities of blacks, and to a lesser extent Latinos, in metropolitan areas.