SPATIAL MISMATCH OR RACIAL MISMATCH?

The impact of the coronavirus on African American unemployment: lessons from history

In this article, our fundamental research question is to investigate the effect of the Coronavirus (named COVID-19) on the African American labor market. More specifically, we attempt to examine the potential economic impact of COVID-19 on the state of racial disparities among the African American labor market by examining two effects, namely, employment and income differentials, using national, state, and city level data (using data for all 77 neighborhood areas of the City of Chicago). Our central finding is that the labor market does not appear to treat black and white laborers as homogeneous, as attested by the finding that African American workers suffer from higher unemployment rates with higher volatility, lower median incomes, and they are more likely to work in the service sector, compared to their white counterparts, and we find this condition to be even larger in the City of Chicago. These findings have important policy implications.

Spatial Mismatch, Different Labor Markets and Precarious Employment: The Case of Hong Kong

Spatial mismatch theory argues that geographic barriers have significant adverse effects on (un)employment, especially with respect to disadvantaged workers. Existing debates on spatial mismatch have focused on its influence on unemployment, but few studies have paid attention to the impact of spatial factors on increasingly precarious employment in today's labor market. Using data from four waves of the Hong Kong Panel Study of Social Dynamics (HKPSSD), the 2011 Population Census and the 2016 Population By-census, this study aims to investigate the effects of spatial mismatch on precarious employment in the low- and high-skilled labor markets in Hong Kong with multi-leveled modeling. The results suggest that with higher levels of spatial mismatch, workers in the low-skilled labor market are more likely to be in precarious employment. In the high-skilled labor market, sub-degree holders are also more likely to engage in precarious employment. Even worse, spatial mismatch in Hong Kong has deteriorated over time. Based on these results, we offer policy recommendations and show how the study of spatial mismatch can inform policymaking. Overall, we contribute to the literature by demonstrating that spatial mismatch can lead to precarious employment among employed workers and has differentiated effects on low- and high-skilled labor markets.