The Effect of Residential Location on the Probability of Black and White Teenagers Having a Job

The evidence presented here suggests that residential location has a strong impact on both white and black youth job probability. These results were obtained by estimating a multinomial logit model, which recognizes the joint endogeneity of employment and school enrollment, with data from the Chicago metropolitan area. Furthermore, according to our results, at a minimum, about a fifth of the black/white employment rate differential among Chicago’s youth can be attributed to residential segregation.