Analyses of ethnic and racial wage differentials neglect the fact that minorities cluster in urban and in more deprived areas. This paper estimates ethnic wage differentials by comparing minorities to the majority in the same local labour market and therefore facing similar socio-economic...

In many developed countries, racial and ethnic minorities are paid, on average, less than the native white majority. While racial wage differentials are partly the result of immigration, they also persist for racial minorities of second and further generations. Eliminating racial wage...

This paper exploits quasi-random variation in the share of Black students across cohorts within US schools to investigate whether interracial contact in childhood impacts the residential choices of Whites in adulthood. We find that, 20 years after exposure, Whites who had more Black peers of the...