Local Determinants of Unemployment in the Paris Area

Gobillon, Laurent

Local Determinants of Unemployment in the Paris Area - 2008.


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This article studies the effect of residential segregation and spatial mismatch (physical distance from the workplace) on unemployment. We begin with a brief summary of the economic literature on these issues. We then offer descriptive statistics to characterize the scope of residential segregation and spatial mismatch in the Paris region (Île-de-France) using 1999 census data and inter-city travel-time matrices for 2000. We conclude by estimating the effect of the local context (segregation and spatial mismatch) on unemployment/employment transitions in the Paris region, using 1990-2002 Labor-Force Survey data. Our results show that unemployed persons in segregated districts have greater difficulty in finding new jobs.

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