This paper presents an amenity-based theory of location by income. The theory shows that the relative location of different income groups depends on the spatial pattern of amenities in a city. When the center has a strong amenity advantage over the suburbs, the rich are likely to live at central...

A two-sector model of urban unemployment is developed which focuses on the formation of a secondary sector under conditions in which a demand shock in the primary sector leads to a sharp increase in unemployment. The optimal location in the secondary sector (treated as a single firm) is shown to...

In a model of horizontal product differentiation, we show that local monopolied may exist under free entry when capital is perfectly mobile. In contrast both with the situation of restricted entry and with the zero-profit approach to free entry outcomens of Salop 91979), the unit profit rate of...

This paper proposes a model where employers have two types of prejudices: racial and spatial discrimination. Because of the first one, black workers have less chance than white workers to find a job. Because of the second one, workers living closer to the city-center have less chances than...

We present a model that focuses on the links between location and educational choices in South African cities. Be comparing the Apartheid city and the post-Apartheid city, we show that the inequality in South Africa between blacks and whites decreases when Apartheid laws are removed.

We introduce spatial dimension in a search equilibrium unemployment model. By assuming that workers' search efficiency decreases with the distance to the employment-center, two urban equilibrium configurations emerge: either the unemployed reside close to the employment-center or far away from...