Spatial and Transportation Mismatch in Los Angeles

Abstract

This article compares the impacts of spatial mismatch (the geographic separation of workers and jobs) and transportation mismatch (the lack of access to a private automobile) on neighborhood employment-to-population ratios and unemployment rates. The study uses tract-level data for the Los Angeles metropolitan area. The analysis uses an instrumental-variable approach to correct for the simultaneity of employment and car ownership. Results indicate that transportation mismatch is the more important factor in generating poor labor-market outcomes, particularly for disadvantaged neighborhoods. Areas with relatively more jobs increase female employment rates but not male employment rates. On the other hand, lower car ownership rates significantly decrease the employment ratio and increase the unemployment rate for both sexes.