Steering and spatial mismatch

The spatial mismatch hypothesis posits that geographic disparities between minorities’ residences and job locations, exacerbated by housing discrimination, significantly contribute to their persistent labor market disadvantages (Kain, 1968). Using data from a large-scale fair housing experiment and granular employment data, we provide the first direct test of housing discrimination’s role in this hypothesis. We find that African American home seekers are disproportionately steered toward neighborhoods with reduced access to middle- and low-income, low-skill job opportunities within commuting distance, while Hispanic home seekers are steered away from neighborhoods offering greater job access within walking distance.