According to the spatial mismatch hypothesis, what causes central city unemployment?

The spatial mismatch hypothesis suggests that unemployment in central cities is largely a result of the geographic separation between low-skilled job opportunities and the residents who need those jobs. When businesses relocate to suburban areas, they often take job opportunities with them, leaving a significant population in central cities without access to nearby employment. This shift can create a substantial gap; those who are seeking work may not be able to afford transportation, or they may lack the means to commute to areas where jobs are aggressively growing.

This hypothesis highlights the systemic issue where economic development policies may favor suburban growth, inadvertently disadvantaging urban populations and contributing to sustained high unemployment rates in those areas. This spatial disconnect between job locations and the residential locations of potential workers is a critical factor in understanding the dynamics of urban unemployment.

In contrast, while lack of skill training, high living costs, and migration to rural areas are important factors that can influence unemployment, they do not specifically address the geographic and economic disconnect characterized by the spatial mismatch hypothesis. The hypothesis focuses primarily on the impact of relocating businesses and the resultant consequences on employment access for inner-city residents.