geographic mobility race and wage differentials abstract this paper analyzes the relationship between geographic mobility and earnings we present an equilibrium search model that yields differences between the reservation wages of mobile and immobile workers the expected wages of mobile workers exceed those of immobile workers due to partial sorting across high and low paying firms an extension to visibly distinct groups with different immobile proportions yields statistical discrimination against immobile group members using combined displaced workers files we find that mobility positively affects earnings and partially explains racial and ethnic earnings differentials to test for statistical discrimination we estimate separate earnings functions for union and nonunion workers

intra metropolitan variation in earnings and labor market discrimination an econometric analysis of the atlanta labor market one of the most enduring debates concerning racial differences in earnings is whether housing segregation within metropolitan areas adversely affects the employment opportunities of urban blacks two possible negative effects can be listed first the decentralization of lower skilled jobs combined with the suburban residential exclusion of low income households may have caused wage rates within the suburban labor market to rise above those paid within the central city if this is the case and if housing market discrimination restricts the relative ability of blacks to offer their labor supply to suburban employers then at least part of the racial difference in earnings can be attributed to housing segregation second housing segregation may cause private sector labor market discrimination to be more severe within the central city in comparison to suburban areas as suggested by becker s taste for discriminating model 3 a relatively large black labor supply within the central city may require a lower black to white earnings ratio in order to induce prejudiced employers to hire large numbers of black workers with the workforce of most central cities becoming increasingly black this may be an important factor in explaining racial differences in earnings surprisingly while variation in discrimination among occupations regions industries and sectors have been examined in some detail spatial differences in discrimination between the central city and suburbs have largely escaped analysis in this paper the earnings of private sector workers broken down by occupation race and sex are compared between worksite areas encompassing the metropolitan area of atlanta georgia while an extensive literature can be found on interregional differences in earnings little evidence exists on the spatial variation in wage rates within metropolitan regions in fact virtually nothing has been done on this issue since the classic study of the chicago labor market by rees and shultz 19

social polarisation and socioeconomic segregation in a welfare state the case of oslo this paper looks at the competing theses of polarising convergence and policy related divergence in the study of socioeconomic segregation using data from oslo norway it is shown that the level of segregation has remained fairly stable or has even declined in spite of increasing income inequality this spatial stabilisation is causally related to a more flexible design in city planning and policy it is however not a development in accordance with the welfare state approach proposed by chris hamnett and some other scholars rather we observe a perverse effect where social democracy has been helped by opposition policies in consequence the paper suggests the use of models of action and the identification of closed and open processes of change

the social ecology of the post fordist global city economic restructuring and socio spatial polarisation in the toronto urban region numerous authors have asserted that globalisation and occupational changes associated with post fordist economic restructuring have led to a growth in intraurban social disparity and even polarisat

black residential centralization and the spatial mismatch hypothesis abstract black residential centralization is found to be an important determinant of black employment status when estimated across metropolitan areas mas to avoid neighborhood selection the effects are greatest in large mas for the young and elderly and for individuals with less than a college education instrumental variable iv estimates support ordinary least squares ols results black residential centralization can account for 48 62 of the black white employment differential among 18 30 year olds living in large mas when estimated together black residential centralization job centralization and segregation all have large effects but the effects of black centralization and job centralization are considerably larger

labor market competition among youths white women and others we estimate substitution possibilities among a set of age race sex groups in the labor force the estimates are based on cross section data from smsas in 1969 and they allow us to consider how substitutable adult women are for young women or young men the estimates are used along with assumptions about the extent of wage rigidity and elasticities of labor supply to simulate the direct and indirect effects of the growth of the female labor force on job opportunities for youth assuming rigid wages for young workers and on the wage rates of adult males assuming these wages are flexible this abstract was borrowed from another version of this item

racial disparities in job finding and offered wages abstractthe extent to which discrimination can explain racial wage gaps is one of the most divisive issues in the social sciences using a newly available data set this paper develops a simple empirical test that under plausible but not innocuous conditions provides a lower bound on the extent of discrimination in the labor market taken at face value our estimates imply that differential treatment accounts for at least one third of the black white wage gap we argue that the patterns in our data are most naturally rationalized through a search matching model in which employers statistically discriminate on the basis of race when hiring unemployed workers but learn about their marginal product over time

upstairs market for principal and agency trades analysis of adverse information and price effects this paper directly tests the hypothesis that upstairs intermediation lowers adverse selection cost we find upstairs market makers effectively screen out information motivated orders and execute large liquidity motivated orders at a lower cost than the downstairs market upstairs markets do not cannibalize or free ride off the downstairs market in one quarter of the trades the upstairs market offers price improvement over the limit orders available in the consolidated limit order book trades are more likely to be executed upstairs at times when liquidity is lower in the downstairs market

liquidity in auction and specialist market structures evidence from the italian bourse abstract several studies find that bid ask spreads for stocks listed on the nyse are lower than for stocks listed on nasdaq while this suggests that specialist market structures provide greater liquidity than competing dealer markets the nature of trading on the nyse which comprises a specialist competing with limit order flow obfuscates the comparison in 2001 a structural change was implemented on the italian bourse many stocks that traded in an auction market switched to a specialist market where the specialist controls order flow results confirm that liquidity is significantly improved when stocks commence trading in the specialist market analysis of the components of the bid ask spread reveal that the adverse selection component of the spread is significantly reduced this evidence suggests that specialist market structures provide greater liquidity to market participants

residential segregation and the economic status of black workers new evidence for an old debate abstract scholars have long debated whether ghetto residence lowers the earnings of blacks most empirical studies on this question have been flawed because they have not considered the simultaneous effects of choices of work and residence locations and the effects of intrametropolitan variation in rents and wages this paper estimates a revealed preference model of intraurban location with data from the 1980 public use microdata sample for cleveland detroit and philadelphia to test whether black male household heads who are employed full time year round are less likely than whites to live and work at their best locations we measure the wages rents and commuting costs associated with each possible job residence location combination in these cities for each person given their job qualifications and their housing needs a revealed preference approach is used to evaluate the economic welfare of individuals at each possible location and then compare the actual distribution of work and residence locations by race with the welfare maximizing distribution the divergence in these distributions by race measures the economic effects for employed black male household heads of residential segregation in ghettos we find that the economic status of blacks can be improved significantly by changing their intrametropolitan job locations surprisingly this conclusion holds regardless of whether or not blacks keep their current residential locations while changes in residential locations can improve the economic status of blacks relative to whites by decreasing commuting and or the cost of housing such residential changes do not significantly alter the physical accessibility of better paying jobs

the information content of institutional trades on the london stock exchange we construct a unique data set that includes all reported institutional block trades on the london stock exchange and analyze the market reaction to buy and sell trades we find that the type of investors behind the trade and the combination of the trade s size and the trader s resulting level of ownership are the major determinants of the information effects and the asymmetry between price impacts of buy and sell trades in particular large trades undertaken by fund managers the most active investors in our sample have strong information content while for the remaining trades we report limited support for the information and the price impact asymmetry hypotheses these results hold even after accounting for trade complexity and volatility effects in the regressions

social polarisation the labour market and economic restructuring in europe an urban perspective it is frequently argued that changes in the occupational structure and labour markets of european cities have the potential to undermine social cohesion the term social polarisation has been wid

the labor market effects of employer recruitment choice abstract i analyze employer recruitment decisions using a dynamic discrete choice structural model that i estimate on a sample of clerical workers from the mcsui a large cross section of establishments in four metropolitan areas of the us in the model employers choose either informal recruitment methods which generate a small but select applicant pool from which the employer can hire quickly or formal methods which create a large but less select applicant pool which the employer must screen intensively delaying hiring times i study the effects of three counterfactual simulations on recruitment strategies starting wages and vacancy durations a wage subsidy a policy designed to improve information about prospective matches and an increase in the heterogeneity of prospective matches i show that the effects of exogenous policy or environmental changes can be decomposed into pure wage effects that affect the wage offers employers post holding constant their recruitment strategies and recruitment wage effects that involve changes in recruitment methods the results show that changes in recruitment strategies represent an important channel through which changes in the economic environment affect the starting wages and vacancy duration for new hires

the effects of new public projects to expand urban rail transit abstract many us cities invest in large public transit projects in order to reduce private vehicle dependence and to reverse the downward trend in public transit use using a unique panel data set for five major cities that upgraded their rail transit systems in the 1980s we estimate new rail transit s impact on usage and housing values using distance as a proxy for transit access new rail transit has a small impact on usage and housing values this impact is enough to represent tangible benefits of new transit to nearby residents new transit s benefits are not uniformly distributed we document which demographic groups are over represented in transit growth areas and the changes in transit usage by different demographic groups

employment impact of inner city development projects the case of underground atlanta this paper makes use of a unique data set to explore the issue of whether inner city residents are more likely to be hired by a new inner city development than non residents a selection model with partial observability is specified and estimated this partial observability estimates at the hiring stage we determine holding individual and neighbourhood characteristics constant that while inner city residents are less likely to be considered hireable their greater propensity to apply for jobs at this development means that they were at least as likely as non residents to both apply and be hired we also tentatively conclude that distances between an applicant s residence and the location of the development does not appear to have been an issue in the application decision

how has the euro changed the foreign exchange market this paper examines the primary forex statistics for the euro in relation to the german mark prior to 1999 contrary to widespread expectations our evidence indicates that the euro lost ground against the us dollar in forex spot trading and in some dimensions does not even match the international transaction role of the german mark we argue that the euro changed the forex market structure and particularly increased market transparency through currency elimination the higher market transparency exposes the dealers to higher inventory risk as his inventory imbalances are revealed more easily to other dealers dealers in the euro markets recover increased inventory costs through higher spreads that make the euro a less attractive transaction medium than the german mark we explore the policy implications for the ecb for euro outsiders and reflect upon the future of the forex market

residential mobility and job changes under uncertainty abstract this paper empirically investigates households residential mobility and job change decisions under uncertainty we allow households degree of risk aversion to be a confounding factor in the joint decision of residential mobility and job changes using panel data to estimate a random effects multinomial probit model of households joint decision of residential and job mobility our empirical results show that risk aversion discourages a household from making any changes moreover when compared to single changes in either job or residential locations risk aversion is more discouraging for joint changes to more central residential locations and less discouraging for joint changes to more distant residential locations these effects are statistically significant albeit small in magnitude our empirical results demonstrate the uncertainty does play a role in households job and residential mobility decisions

the quest for a balanced ethnic mix singapore s ethnic quota policy examined to achieve a balanced ethnic mix singapore has implemented an ethnic quota policy on public housing since 1 march 1989 with 86 per cent of the population living in public housing this policy has immense repercussions on the configuration of the ethnic residential landscape this article examines the impact of the quota policy on the buying and renting as well as the selling or letting of public housing the differential response by the various ethnic groups is revealed the policy per se may not achieve its intended impact and may ironically have the least impact on the group it was most intended for integration policies must be more holistic in approach and more sympathetic in execution

the effect of block transactions on share prices australian evidence abstract the sydney stock exchange provides an unusually clean test of whether large transactions affect share prices it is small and trading is thin so our sample of block trades ranges in size from one to sixty days of normal trading volume sydney is a non dealer auction market and we can identify and eliminate all purchases and sales by brokers thus focusing on substitution effects the data are consistent with the perfect substitution hypothesis without price pressure block size distributions conform closely to the log normal distribution and kraus stoll regressions of security returns on untransformed block size are misspecified

customer discrimination and employment outcomes for minority workers this paper investigates the effects of customer discrimination on the employment and earnings of minorities particularly blacks data are used from a new survey of employers in four large metropolitan areas in the united states our results show that the racial composition of an establishment s customers has sizable effects on the race of who gets hired particularly in jobs that involve direct contact with customers and in sales or service occupations race of customers also affects wages with employees in establishments that have mostly black customers earning less than those in establishments with mostly white customers

can black workers escape spatial mismatch employment shifts population shifts and black unemployment in american cities abstract this paper uses a spatial mismatch index that measures the extent to which residential and employment locations differ across a metropolitan area to determine whether the spatial separation of black residential locations and employment locations impacted black labor market outcomes from 1980 to 1990 it is found that between 1980 and 1990 unemployment rates for black workers were negatively affected by a growing divergence between black residential locations and metropolitan employment locations metropolitan employment shifts increased black unemployment rates by 0 63 to 4 32 percentage points while black population shifts did not fully offset the impact of employment shifts

does residential location matter to the employment of tanf recipients evidence from a dynamic discrete choice model with unobserved effects abstract we study the factors affecting the employment probability of temporary assistance for needy families tanf recipients using recent quarterly panel data from atlanta georgia a central focus of our study is to determine whether the tanf recipient s proximity to job opportunity and the availability of childcare affect her probability of full time employment both static and dynamic models of employment choice are estimated that control for unobserved individual effects we estimate models separately for a sub sample of tanf recipients living in public housing whose residential locations can be considered exogenously determined we find substantial evidence that individual and family characteristics such as the education of the recipient and the number of children and adults in her family are important determinants of the employment probability of welfare recipients on the other hand location related variables are found to be relatively unimportant

employer recruitment strategies and the labor market outcomes of new hires i introduction employers and job seekers are brought together for potential matches through their recruitment and job search activities employers may post help wanted signs run newspaper advertisements or seek referrals from private employment agencies job seekers may speak with friends and relatives solicit the aid of the state employment agency or simply walk in and apply these recruitment and search activities help both parties acquire information about each other and the more information they obtain prior to entering an employment agreement the higher the likelihood of a good employment match the crucial role of information in the labor market has been recognized since stigler 1962 but despite a voluminous literature on job matching and organizational behavior in labor markets we know far less about employers recruitment strategies than about job seekers search strategies as granovetter 1995 notes while people are finding jobs employers are finding people to fill them and their behaviors strategies and purposes play a central but often neglected role in the process of matching people to jobs this imbalance in research effort is explained more by a dearth of adequate data describing employer recruitment behavior than by lack of scholarly interest indeed labor economists sociologists psychologists and human resource management specialists have spent the last half century exploiting the meager existing data sets in efforts to learn about employer recruitment behavior in this article i address several empirical questions concerning employer recruitment using the multi city study of urban inequality mcsui a large cross sectional survey of employers in four metropolitan areas of the united states that has not been exploited for a detailed analysis of the relationships among recruitment strategies starting wages and vacancy duration despite the richness of the data set for this purpose the mcsui data contain detailed information on firm and job characteristics and most important for the purpose of this article indicators of the recruitment methods these employers used when hiring the most recently hired worker the data allow a number of interesting questions to be addressed concerning the link between employer recruitment choices and starting wages vacancy duration and the skill levels of new hires because there has been relatively little empirical research done by labor economists on employer recruitment this work with a relatively large representative sample of employers should enhance our understanding of a number of basic questions i consider three of these first i present evidence describing which recruitment methods employers use and how these vary by firm characteristics vacancy characteristics and the skill requirements of jobs i estimate a multivariate probit model with a separate equation for each of 10 recruitment choices in addition to providing information about the relationship of each recruitment method with each of the covariates this method has the attractive feature of allowing for an analysis of the relationships among the unobserved determinants of recruitment choice to my knowledge this methodology is new to the recruitment literature second i present regression evidence showing how vacancy duration varies by recruitment choices some recruitment methods can be expected to be faster than others in generating job applicants however an employer must invest time in screening the applicant pool so the recruitment methods that generate applicants quickly do not necessarily fill vacancies quickly therefore the link between recruitment methods and vacancy durations is an empirical question third i present evidence concerning the relationship between starting wages and recruitment methods in particular i augment standard log wage specifications based on the human capital model with recruitment choices and find that the recruitment variables have explanatory power even in the presence of all of the usual controls

downsizing and worker separations modelling the regional economic impacts of alternative department of energy workforce adjustment policies lewis d frisch m and greenberg m 2004 downsizing and worker separations modelling the regional economic impacts of alternative department of energy workforce adjustment policies reg studies 38 67 83 fifty years of huge investments by the us department of energy doe in some regions has resulted in the doe being the de facto steward of their regional economic health with the end of the cold war job reductions of doe contractor workforce have severely impacted these regions doe worker separation policies may cushion or intensify these impacts using an economic simulation model we examined the impacts of three different worker separation policies the painful response no severance packages the current response the current average of doe separation packages and the supportive response more lucrative severance and continued medical coverage the analysis is split on two regional axes 1 more rural doe regions as in the area surrounding the savannah river site srs near august

the signaling role of promotions further theory and empirical evidence an extensive theoretical literature investigates the role of promotions as a signal of worker ability we extend the theory by focusing on how the signaling role of promotion varies with education and then investigate the resulting predictions using a longitudinal data set that contains detailed information concerning the internal labor market history of a medium sized firm in the financial services industry our results support signaling being important for understanding the differences between promotion practices concerning bachelor s and master s degree holders while the evidence concerning the importance of signaling for high school graduates and phds is mixed

migration with endogenous moving costs we study a dynamic model of labor migration in which moving costs decrease with the number of migrants already settled in the destination this assumption is supported by sociological studies of migrant networks with endogenous moving costs migration occurs gradually over time once it starts it develops momentum and migratory flows may increase even as wage differentials narrow in addition migration tends to follow geographical channels and low moving cost individuals migrate first these patterns are consistent with historical evidence from the great black migration of 1915 1960 in the united states much of which cannot be reconciled with existing migration models excerpt

large block transactions the speed of response and temporary and permanent stock price effects abstract the paper investigates how quickly prices attain new equilibrium levels after large block transactions and measures the associated temporary and permanent price effects we find that prices adjust within at most three trades with most of the adjustment occurring in the first trade the temporary price effect for seller initiated transactions is related to block size but the temporary price effect observed for buyer initiated transactions is no larger than that observed in 100 share trades most of the price effect associated with block trades is permanent and is related to block size regardless of the initiating party

the mobility of labor and capital a study in international investment and labor flow list of tables acknowledgements introduction 1 foreign investment a neglected variable 2 the use of foreign workers 3 the new immigration 4 the globalization of production implications for labor migration 5 the rise of global cities and the new labor demand 6 the reconcentration of capital in the united states a new investment zone conclusion notes references index

the behavior of stock prices around institutional trades all trades executed by 37 large investment management firms from july 1986 to december 1988 are used to study the price impact and execution cost of the entire sequence package of trades that we interpret as an order we find that market impact and trading cost are related to firm capitalization relative package size and most importantly to the identity of the management firm behind the trade money managers with high demands for immediacy tend to be associated with larger market impact financial economists have long studied the equity trading process and its impact on stock prices much prior empirical research isolates individual trades and analyzes the behavior of the stock price around each trade see for example kraus and stoll 1972a holthausen leftwich and mayers 1987 1990 keim and madhavan 1991 petersen and umlauf 1991 hausman lo and mackinlay 1992 and chan and lakonishok 1993 evaluating the behavior of stock prices around trades provides a means of discriminating among various hypotheses as to the elasticity of the demand for stocks yields an estimate of the cost of executing trades and a measure of the liquidity of a market and permits tests of different models of the determination of quotes and transaction prices for many institutional investors however even a moderately sized position in a stock may represent a large fraction of the stock s trading volume accordingly an investment manager s order is often broken up into several trades it is often misleading therefore to consider an individual trade as the basic unit of analysis in the study of trading activity and its effects on prices this paper uses the record of trades executed by 37 large investment manage

social polarisation economic restructuring and welfare state regimes the central argument of this paper is that it is misconceived to view social polarisation of occupational structure and incomes in global cities as either inevitable or as a direct product of econo

socio tenurial polarization in the united kingdom 1953 83 the income evidence family expenditure survey data show a widening gap between the incomes of households in different tenures during the period 1953 to 1983 in particular a major gap has opened up between the two major tenures as the median income of owner occupied households relative to the national average has risen whereas that for local authority tenants has fallen sharply recent years have seen an acceleration of these trends and the local authority sector is now increasingly characterised by those on low incomes

race segregation and postal employment new evidence on spatial mismatch abstract the spatial mismatch hypothesis posits that employment decentralization isolated urban blacks from work opportunities this paper focuses on one large employer that has remained in the central city over the twentieth century the u s postal service we find that blacks substitute towards postal work as other employment opportunities leave the city circa 1960 the response is particularly strong in segregated areas where black neighborhoods are clustered near the central business district furthermore this pattern only holds for non mail carriers many of whom work in central processing facilities more recently the relationship between black postal employment and segregation has declined suggesting that spatial mismatch has become less important over time

in the margin of the welfare state labour market position and housing conditions of undocumented immigrants in rotterdam undocumented immigrants form a substantial share of minority populations data on the city of rotterdam show that the fate of undocumented immigrants to a large degree is dependent on established migrant communities differences between migrant communities in terms of numbers and access to social housing seem to have significant effects on the position of undocumented immigrants with the same ethnic or national background undocumented immigrants both feed on and contribute to migrant communities in terms of housing opportunity and segregation in the age of migration any serious study of migrant communities has to take into account the presence and social position of undocumented immigrants

do neighborhoods affect hours worked evidence from longitudinal data using a confidential version of the nlsy79 we estimate large effects of neighborhood social characteristics and job proximity on labor market activity a variety of neighborhood social characteristics are associated with less market work social characteristics have nonlinear effects with the greatest impact in the worst neighborhoods social characteristics are also more important for less educated workers exploiting the panel aspects of our data we find that estimates that do not account for neighborhood selection on the basis of time invariant and time varying unobserved individual characteristics substantially overstate the social effects of neighborhoods but understate the effects of job access

markets transparency and the corporate bond market for decades corporate bonds primarily traded in an opaque environment quotations which indicate prices at which dealers are willing to transact were available only to market professionals most often by telephone prices at which bond transactions were completed were not made public the u s corporate bond market became much more transparent with the introduction of the transaction reporting and compliance engine trace in july 2002 beginning that date bond dealers were required to report all trades in publicly issued corporate bonds to the national association of security dealers which in turn made transaction data available to the public in this paper we describe trading protocols in the corporate bond market and assess the impact of the increase in transparency on the market we review how trace has affected the costs that corporate bond investors paid to bond dealers for their transactions we canvass the opinions of a variety of finance professionals and consider articles in the trade press to obtain a broader view of the impact of transparency on the corporate bond market

in quest of the good urban life socio spatial dynamics and residential building stock transformation in zurich this paper discusses socio spatial dynamics and the transformation of the residential building stock in the global city of zurich it deals with five questions does zurich exhibit the type of social polarisation outlined by the global city hypothesis if so how does social polarisation become visible in the context of a european city which actors in the real estate market are catering to the special tastes of the new urban middle class with whom does the new middle class compete for space in the city the paper argues that real estate developers customise the residential building stock and produce residential units for a targeted market the new urban middle class furthermore a new socio spatial phenomenon ennoblement has evolved as the new urban middle class takes residence in traditional upper class neighbourhoods by investing its own economic capital this new middle class is hoping to profit from upper class social and cultural capital

can transparent markets survive abstract this paper investigates whether transparent markets can survive when faced with direct competition from less transparent markets we first construct a game theoretic model in which in equilibrium the low transparency dealers capture early order flow and use the resulting informational advantage to quote narrower spreads and earn more profits than their more transparent competitors we then conduct a laboratory experiment that tests and supports all of these predictions a second experiment shows that most dealers choose to be of lower transparency when they are allowed to do so however the informational advantage of low transparency decreases as there are more such dealers while the high transparency dealers get increasing benefit from informed traders who attempt to broadcast deceptive trades as a result a small number of transparent dealers persist in our markets

oil vulnerability in the australian city assessing socioeconomic risks from higher urban fuel prices global oil prices have risen markedly over the past 18 months generating considerable speculation regarding their economic and social impacts cities that are highly dependent on petroleum for urban transport are likely to be most adversely affected by rising oil prices yet there has been little recent scholarly engagement with the socioeconomic implications of increasing oil prices this paper develops a basic framework and methodology for assessing the socioeconomic oil vulnerability of australian cities the paper demonstrates that there is wide spatial variability in the vulnerability of australia s urban populations to rising fuel costs which may compound existing socio spatial divisions and speculates on some underlying causal factors the paper calls for better data and new methods to understand the issue

is australia s home ownership rate really stable an examination of change between 1975 and 1994 australia has exhibited a remarkably stable home ownership rate of 70 per cent for over thee decades however this paper questions whether this rate is sustainable decomposition techniques based on tenure choice models are used to provide evidence of changing homeownership patterns in australia between 1975 and 1994 the results indicate a distinct change in home ownership propensities which is neither uniform across age groups nor uniform for different household types with both the same and with different levels of income a number of tentative explanations are proposed each of which provides the basis for further research on the factors affecting household tenure decisions this is essential if the potential for a significant decline in home ownership is to be seen as a matter of concern

informal job search and black youth unemployment in this paper i analyze how young black and white unemployed jobseekers use various methods of search and the employment outcomes which result from their use the focus is on distinguishing informal search methods i e friends and relatives or direct application without referral from more formal ones in analyzing racial differences the results show that the two informal methods of search account for about 90 of the difference in employment probabilities between white and black youth this also accounts for 57 71 of the difference in unemployment rates between the two furthermore most of these results reflect differences in the ability of these methods to generate job offers as opposed to differences in search effort or job acceptance rates however our ability to explain these differences through personal family and household characteristics was generally quite limited this abstract was borrowed from another version of this item

foreign direct investment and international migration to dutch cities this article assesses separately the push pull factor explanations in sassen s theory on migration from newly industrialising countries to cities in oecd countries the push factor explanation argues that foreign direct investments spawn migration flows to the country from which these investments stem the pull factor explanation revolves around demand for low skilled workers in cities due to the clustering of advanced producer services it is found that dutch investment flows indeed function as a push factor for migration to dutch cities but that the local settlement of immigrants is not related to the clustering of advanced producer services

racial discrimination and redlining in cities we propose a model where employers have two types of prejudices racial and spatial discriminations because of the rst one black workers have less chance than white workers to nd a job because of the second one workers living closer to the city center have less chances than suburban workers to nd a job in this context we show that depending on the importance of access costs to employment centers two urban equilibria may emerge in equilibrium 1 the access cost for blacks is quite large black and white workers are totally separated while in equilibrium 2 the access cost for blacks is relatively small workers are separated by their employment status the unemployed versus the employed we then study the labor market equilibrium and its interactions with the land market we show in particular that both race and space matter to explain high unemployment rates among blacks

in search of liquidity block trades in the upstairs and downstairs markets we analyze the ability of various market mechanisms to provide liquidity for large equity trades using data on 21 077 block transactions in dow jones stocks we find that the down stairs nyse floor market is a significant source of liquidity although negotiation in the informal upstairs market provides better execution than the downstairs market for large trades these differences are economically small we find however that upstairs markets are used by traders who can credibly signal that their trades are liquidity motivated thus upstairs markets allow trades that may not otherwise occur article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

job access employment and earnings outcomes for welfare leavers in a us urban labour market this article examines the effect of job access on employment outcomes for welfare recipients in cleveland ohio leaving assistance during 1998 2000 a rich longitudinal dataset is employed combining administrative and survey data with multiple measures of access to and competition for jobs the focus is on both a population and a range of measures of employment outcomes not previously studied in this context empirical ambiguity in the existing literature has resulted from the difficulty of modelling causality when employment and residential location are jointly determined in this study labour market outcomes are related to the residential locations of welfare leavers prior to employment thus overcoming much potential endogeneity virtually no evidence is found that job access influences labour market outcomes for this population

the locus of racial disadvantage in the labor market1 using a pooled sample constructed from recent installments of the displaced workers survey this study examines the racial disparities in postdisplacement outcomes while controlling for the predisplacement experience and earnings of individual workers it finds no racial difference in the reemployment wage but there is a large racial disparity in the chances of reemployment among workers with equivalent characteristics and experience this lower reemployment rate of displaced black workers may be due to individual differences in search behavior but it is also consistent with contemporary accounts of hiring discrimination

trading frequency and volatility clustering abstract volatility clustering with autocorrelations of the hyperbolic decay rate is unquestionably one of the most important stylized facts of financial time series this paper presents a market microstructure model that is able to generate volatility clustering with hyperbolically decaying autocorrelations via traders with multiple trading frequencies using bayesian information updates in an incomplete market the model illustrates that signal extraction which is induced by multiple trading frequencies can increase the persistence of the volatility of returns furthermore we show that the volatility of the underlying time series of returns varies greatly with the number of traders in the market

when jobs move do black and latino men lose the effect of growth in job decentralisation on young men s jobless incidence and duration the spatial mismatch hypothesis suggests that the movement of jobs from central cities to suburbs negatively affects blacks employment both absolutely and relative to whites in this paper data a

risk aversion transparency and market performance using a model of market making with inventories based on biais 1993 we find that investors obtain more favorable execution prices and they hence invest more when markets are fragmented in our model risk averse dealers use less aggressive price strategies in more transparent markets centralized because quote dissemination alleviates uncertainty about the prices quoted by other dealers and hence reduces the need to compete aggressively for order flow further we show that the move toward greater transparency centralization may have detrimental effects on liquidity and welfare

the spatial distribution of black employment between the central city and the suburbs i introduction smock 1968 kain 1968 and leonard 1987 have shown that the share of jobs held by blacks is smaller in the suburbs in comparison to the central city little is known concerning the factors accounting for this skewness in the spatial distribution of black employment because of the absence of suitable data a number of possible factors can be suggested first there may be no incentive to commute to the suburbs if wages are no higher or jobs no more available than within the central city that is the alleged spatial mismatch that has presumably created a surplus of less educated workers living in the central city and a shortage of these workers living in the suburbs may in fact not exist second the distances to jobs in the suburbs may make commuting to these jobs prohibitively costly and may limit the information readily available to urban blacks on suburban job opportunities third becker type consumer and or employer discrimination may cause employers to prefer hiring blacks in the central city or prefer hiring whites in suburban areas or both finally in comparison to central city jobs fewer suburban jobs are within walking distance of a public transit stop and many central city blacks do not own automobiles 1 from a policy perspective it is crucial to determine the relative importance of the above explanations for black employment segregation for example based upon a belief in the spatial mismatch hypothesis kasarda 1989 orfield 1985 hughes 1989 skinner 1989 and wilson 1992 have recommended that improved public transportation be provided to reverse commuters however on its own this strategy may not be particularly effective if blacks encounter greater hiring discrimination outside the central city and or know little about suburban jobs to shed some light on the spatial distribution of black employment between the central city and the suburbs this paper 1 provides some evidence on whether the central city labor market is tighter or looser than the suburban labor market for less educated workers 2 develops and estimates a model which explains the racial composition of firms workforces and 3 uses the parameter estimates from this model to investigate the relative importance of the aforementioned factors as explanations for black employment segregation the data come from a survey which we conducted of the managers of 102 fast food hamburger restaurants in the atlanta georgia metropolitan area the results yield three conclusions first expected wages the probability of employment times the wage rate are higher in the suburbs than within the central city which lends support to the spatial mismatch hypothesis and reinforces the need to understand the spatial distribution of black employment second the manager s race the percentage of the restaurant s customers who are white distance from the central business district and the proximity of the restaurant to mass transit are all found to have an important influence on the racial composition of the restaurant s crew third all of these variables are found to play an important role in explaining the difference in black employment share between central city and suburban restaurants of particular interest is that approximately 36 percent of this difference can be attributed to the fact that suburban restaurants are less frequently served by public transit the next section reviews the literature on the spatial mismatch hypothesis and relates this hypothesis to black employment segregation section iii describes the data evidence is presented on the quality and availability of suburban in comparison to central city jobs in section iv a model of the racial mix of the restaurant s crew is developed in section v the results from estimating this model are discussed in section vi policy implications and suggestions for future research conclude the paper ii the spatial mismatch hypothesis and black employment segregation the last half of the 1980s witnessed a revival of interest in the old idea that the suburbanization of jobs and involuntary housing market segregation have acted together to create a surplus of workers relative to the number of available jobs in inner city neighborhoods where blacks are concentrated

subscribing to transparency abstract the paper empirically explores how more trade transparency affects market liquidity the analysis takes advantage of a unique setting in which the shanghai stock exchange offered more trade transparency to market participants subscribing to a new software package first the results show that the additional data disclosure increased trading activity but also increased transactions costs through wider bid ask spreads thus in contrast to popular policy belief the paper finds that more transparency need not improve market liquidity second the paper finds a particularly strong immediate liquidity impact accompanied by altered trading behavior which suggests a significant impact on institutional traders subscribing relatively early lastly since the effective level of market transparency is bound to depend on how many traders are subscribing to the data the study can empirically establish the functional form between market wide transparency and liquidity the relationship is non monotonic which can explain the lack of consensus in the existing literature where each empirical study is naturally confined to specific parts of the transparency domain

spatial mismatch search effort and urban spatial structure abstract the aim of this paper is to provide a new mechanism for the spatial mismatch hypothesis spatial mismatch can here be the result of optimizing behavior on the part of the labor market participants in particular the unemployed can choose low amounts of search and long term unemployment if they reside far away from jobs they choose voluntary not to relocate close to jobs because the short run gains low land rent and large housing consumption are big enough compared to the long run gains of residing near jobs higher probability of finding a job

the changing social structure of global cities professionalisation proletarianisation or polarisation this paper addresses a simple but very important question how has the occupational class structure of major world or global cities changed in recent decades this has major social and theoretica

unravelling the global city debate on social inequality a firm level analysis of wage inequality in amsterdam and rotterdam in this article an assessment is made of the consequences of globalisation for urban wage inequality using data on employers in the dutch cities of amsterdam and rotterdam it is shown that simpl

reservation wages and their labor market effects for black and white male youth this paper presents an empirical analysis of self reported reservation wages for unemployed young black and white males the results show that young blacks seek wages which are comparable to those of young whites in absolute terms but which are higher relative to what is available on the demand side of the market these relatively higher reservation wages of young blacks contribute to their unemployment durations and somewhat to their subsequently received wages changes in reservation wages may thus help to explain the trends in wages and employment of young blacks in recent years

social segregation housing tenure and social change in dutch cities in the late 1980s contemporary debates about social polarisation and divided cities emphasise common influences on social and economic change in cities the development of a global economy and of global influences on both market systems and on public policy regimes encourages an expectation that there is a convergence in processes and policies affecting cities and a convergence in outcomes in terms of increasingly similar patterns of polarisation and division this paper considers data from britain and the netherlands relating to changes in the housing sector and to social segregation and indicates that emerging patterns are very different socio tenurial polarisation and social segregation are not as marked in the netherlands as in britain and are not changing as fast the discussion arising from these data suggests that concern with globalisation and common influences on change should be balanced with a recognition of the importance of other factors in determining the pattern and pace of change in cities within this it is important to recognise not just differences in housing finance and policy but the degree of social and income inequality and the wider functioning of the welfare state

the upstairs market for large block transactions analysis and measurement of price effects this article develops a model of the upstairs market where order size beliefs and prices are determined endogenously we test the model s predictions using unique data for 5 625 equity trades during the period 1985 to 1992 that are known to be upstairs transactions and are identified as either buyer or seller initiated we find that price movements prior to the trade date are significantly positively related to trade size consistent with information leakage as the block is shopped upstairs further the temporary price impact or liquidity effect is a concave function of order size which may result from upstairs intermediation

location search costs and youth unemployment experimental evidence from transport subsidies do high search costs affect the labour market outcomes of jobseekers living far away from jobs i randomly assign transport subsidies to unemployed youth in urban ethiopia treated respondents increase job search intensity and are more likely to find good permanent jobs subsidies also induce a short term reduction in temporary work i use a high frequency phone call survey to track the trajectory of search behaviour over time to show that the subsidies significantly increased job search intensity and the use of formal search methods the evidence suggests that cash constraints cause young people to give up looking for good jobs too early

market in financial instruments directive mifid stock price informativeness and liquidity abstract the paper examines the impact of mifid on stock price informativeness and liquidity in 28 eu countries we find that post mifid the stock prices reflect greater firm specific information and the market becomes more liquid consistent with the catch up hypothesis our evidence shows that the impact of mifid in terms of price informativeness is greater for countries that have weaker quality of regulation we find that regulation with enforcement improves market efficiency our results are robust with respect to the choice of price informativeness and liquidity proxies as well as the control sample

the spatial mismatch hypothesis what has the evidence shown this paper reviews 20 years worth of empirical evidence on the spatial mismatch hypothesis after briefly surveying the relevant models from urban and labour economics and recent trends in employment and population suburbanisation the empirical evidence on spatial effects is examined this literature includes evidence on the effects of residential segregation residential suburbanisation and employment suburbanisation and direct measures of access such as travel times the most recent evidence suggests that spatial mismatch is relevant for explaining black white employment differences though the magnitudes of these effects remain unclear

intra metropolitan shifts in labor demand and the adjustment of local markets abstract i offer new evidence on the adjustment of local labor markets to geographic shifts in labor demand within us metropolitan areas using a unique data set in which metropolitan subregions are geographically matched across the 1970 1980 and 1980 1990 decades the evidence uncovered paints the following picture workers especially those with less education make incomplete adjustments within metropolitan areas in response to intra metropolitan demand shifts although blacks may not make especially limited adjustments they have disproportionately suffered deleterious effects from job movements because the demand shifts have tended to be away from their places of residence

stock price effects and costs of secondary distributions abstract this study does not support the view that a large number of shares can be sold at the prevailing market price and at a small cost a significant stock price decrease is observed at the initial announcement of secondary distributions the price declines are greater for offerings by officers and directors and for larger offerings but are significant for all types of sellers and for large and small offerings there is no significant price decline at the offering when secondaries are announced in advance underwriting and other selling costs are substantial and are positively related to relative offering size

differences in metropolitan and nonmetropolitan u s family income inequality a cross county comparison abstract u s family income inequality is examined using 1990 cenus of population data for the 3109 counties and independent cities in the 48 contiguous states use of counties as the unit of analysis extends previous research on u s income inequality that relied on national state or metropolitan level data in addition including both metropolitan and nonmetropolitan counties allows us to determine whether income inequality differs between them after controlling for a variety of labor market demographic and regional characteristics as another innovation we also consider whether counties that experienced recent structural changes in industry composition have higher income inequality

job proximity and the urban employment problem do suitable nearby jobs improve neighbourhood employment rates due to a scarcity of small area jobs data much of the spatial mismatch literature has not directly addressed the impact of nearby jobs on neighbourhood employment rates such analysis is particula

transparency and liquidity a study of block trades on the london stock exchange under different publication rules this article examines whether reducing a market s transparency by delaying the publication of prices for block trades has any impact on liquidity the analysis uses a sample of 5987 blocks from the london stock exchange that cover three different publication regimes immediate 1987 88 90 minutes 1991 92 and 24 hours 1989 90 delaying publication does not affect the time taken by prices to reach a new level which is rapid under all regimes spreads differ across years but their size relates more closely to market volatility than to speed of publication there is therefore no gain in liquidity from delayed publication

growing unequal changes in the distribution of earnings across canadian cities this paper investigates changes in the distribution of earnings across 87 metropolitan areas in canada it does so using micro data taken from the 20 per cent long form sample of the census for the years 1996 2001 and 2006 results point to overall increases in urban inequality and to greater heterogeneity in inequality across the urban hierarchy with larger cities growing particularly unequal over time cross sectional and panel regression models suggest that city size unemployment deindustrialisation and the percentage of a city s population composed of visible minorities contribute to increased inequality in contrast a city s level of economic development has a mitigating effect on inequality although this effect appears to fade away over time the effects of changes in a city s age education and gender profiles on inequality are mixed

anonymity adverse selection and the sorting of interdealer trades this article asks why london security dealers use more than one trading venue to trade with one another we argue that differences in the exclusivity liquidity anonymity and post trade transparency of each system permit a more efficient sorting of interdealer trades than if there were just one system our evidence comes from detailed data on where london dealers chose to place interdealer trades contrary to intuition we show that uninformed interdealer trades as measured by subsequent price impact tend to migrate to third party brokered systems where trade is anonymous by contrast informed interdealer trades tend to migrate to the direct nonanonymous public market additionally we show that this distribution of trades is supported by differences in the price improvement dealers receive in the direct and brokered markets our findings have implications for three strands of the market microstructure literature first they contribute to our understanding of the importance of anonymity and transparency in securities trading most theoretical models of the effects of anonymity and transparency predict that anonymous trading systems will attract more informed trades

a note on execution costs for stock index futures information versus liquidity effects this paper examines execution costs and the impact of trade size for stock index futures using price volume transaction data from the london international financial futures and options exchange consistent with subrahmanyam rev financ stud 4 1991 11 we find that effective half spreads in the stock index futures market are small compared to stock markets and that trades in stock index futures have only a small permanent price impact this result is important as it helps to better understand the success of equity index products such as index futures and exchange traded funds we also find that there is no asymmetry in the post trade price reaction between purchases and sales for stock index futures across various trade sizes this result is consistent with the conjecture in chan and lakonishok j financ econ 33 1993 173 that the asymmetry surrounding block trades in stock markets is due to the high cost of short selling and the general reluctance of traders to short sell on stock markets c 2004 elsevier b v all rights reserved

ethnic variation in commuting propensity and unemployment spells some u k evidence abstract this paper uses 1987 88 u k survey data from the unemployment inflow to investigate the ability of ethnic variation in commuting willingness to account for longer non white unemployment spells the study is motivated by the possibility that ethnic minorities are at greater risk of spatial mismatch unemployment because they are more geographically restrictive in their job seeking activities our findings support this hypothesis and indicate that lower commuting willingness explains about 20 of the differential between the average unemployment spells of ethnic minorities and whites

residential and job mobility interregional variation and their interplay in us metropolitan areas while studies on residential and job mobility are typically conducted on a micro scale an examination of region wide mobility dynamics can also be meaningful as it can reflect the importance of s

racial differences in residential and job mobility evidence concerning the spatial mismatch hypothesis abstract the spatial mismatch hypothesis asserts that job decentralization adversely impacts the labor market outcomes of african americans this paper tests whether race and job access have an independent effect on the probability of a joint residential move and job change no evidence is found to indicate that race directly influences the joint probability the paper finds however that poor job access has an independent negative effect on the probability of a joint residential move and job change because african american residences are heavily concentrated in american central cities these results suggest that african american workers may not be able to fully adjust as new jobs are created in the suburbs

city structure job search and labour discrimination theory and policy implications we consider a search matching model in which black workers are discriminated against and the job arrival rates of all workers depend on social networks as well as distance to jobs location choices are driven by the racial preferences of households both blacks and whites consciously choosing to trade off proximity to neighbors of similar racial backgrounds for proximity to jobs because of coordination failures in the location choices multiple urban equilibria emerge there is a spatial mismatch equilibrium in which blacks reside far away from jobs and experience high unemployment rates and a spatial match equilibrium in which blacks are closer to jobs and experience lower unemployment rates under some reasonable condition we demonstrate that all workers are better off in the spatial match equilibrium we then consider two policies affirmative action and employment subsidies to the firms which hire black workers we show that the optimal policy requires imposing larger quotas or subsidies in cities in which black workers reside far away from jobs than in cities in which they live closer to jobs

social polarisation or professionalisation another look at theory and evidence on deindustrialisation and the rise of the service sector the debate over whether or not the deindustrialisation of cities is accompanied by the occupational and income polarisation of their working populations has been characterised by some confusion ove

institutional trades and intraday stock price behavior abstract this paper examines the price effect of institutional stock trading using a unique data set that reports the transactions large and small of 37 large institutional money management firms the direction of each trade and the identity of the management firm behind each trade are known although institutional trades are associated with some price pressure we find that the average effect is small there is also a marked asymmetry between the price impact of buys versus sells we relate our findings to various hypotheses on the elasticity of demand for stocks the cost of executing transactions and the determinants of market impact although market capitalization and relative trade size influence the market impact of a trade the dominant influence is the identity of the money manager behind the trade