ABSTRACT
This chapter suggests that job creation and retention in and around the neighborhood reduce unemployment modestly. The proportion of the neighborhood labor force that is female also has a negative effect on unemployment. Quadratic and cubic jobs-to-labor-force terms are added to allow for the fact that low levels of jobs-to-labor-force may be associated with more residentially desirable neighborhoods, preferred by more employable households. Black unemployment problems may arise not only due to employment discrimination, although this is a likely contributor but also due to potentially unmeasured differences in educational and occupational experiences. Resulting poor educational achievement combined with inferior access to job opportunities helps reinforce a dual employment market. Because the central business district (CBD) contains many jobs and few residents, proximity to it might be expected to reduce unemployment. Perhaps most significant is the finding that race remains the single largest determinant of neighborhood unemployment—more important than either nearby labor demand or occupational level of residents.
