As we learned in the previous chapter, the spatial mismatch has become a dominant explanation of blacks’, and to some extent Latinos’, low employment levels both absolutely and relative to that of whites in metropolitan areas. In this chapter, the spatial mismatch hypothesis is examined by comparing the dynamic labor market outcomes of young males’ in the suburbs and central cities. A key prediction is implicit in the spatial mismatch idea. The hypothesis suggests that suburban residents should perform better in the labor market than their central city counterparts, and that this should be particularly true for blacks, and to some extent Latinos, because of the role that housing market discrimination plays in limiting their housing options.