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Job Information Networks, Neighborhood Effects, and Inequality

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Author Info
Yannis M. Ioannides
Linda Datcher Loury

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Abstract

This paper explores the theoretical and empirical literature to examine the use by different social groups of informal sources of information provided by friends, relatives, and acquaintances during job search and its consequences for the job market. It also addresses the role of network structure and size, the resource endowments of contacts, and nature of the links between contacts to explain differences in the effects of job information networks. In doing so, the paper also turns to the sociology literature on job information networks and provides an economic perspective on such sociological concepts as strong versus weak ties, inbreeding, distance from structural holes, etc. The paper distinguishes between models of exogenous job information networks, that is where individuals obtain job-related information through a given social structure, and endogenous job information networks, which are social networks that result from individuals' uncoordinated actions. The paper pays special attention to such issues as physical and social proximity and sharing of information and discusses them in the context of the recent social interactions and neighborhood effects literature. Finally, the paper outlines a model that integrates job information networks, where interactions occur in business cycle frequencies, with the dynamics of human capital formation, which include the joint effects of parental, community and neighborhood human capital, and are set in life cycle frequencies, for the purpose of organizing suggestions for future research and examining earned income inequality.

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Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 42 (2004)
Issue (Month): 4 (December)
Pages: 1056-1093
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Handle: RePEc:aea:jeclit:v:42:y:2004:i:4:p:1056-1093

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Linda Loury, 2006. "Job Search Among Informal Contacts," Discussion Papers Series, Department of Economics, Tufts University 0604, Department of Economics, Tufts University. [Downloadable!]
  2. Jan K. Brueckner, 2004. "Friendship Networks," Econometric Society 2004 North American Winter Meetings 184, Econometric Society. [Downloadable!]
  3. Dora L. Costa & Matthew E. Kahn, 2005. "Surviving Andersonville: The Benefits of Social Networks in POW Camps," NBER Working Papers 11825, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Calvó-Armengol, Antoni & Patacchini, Eleonora & Zenou, Yves, 2005. "Peer Effects and Social Networks in Education and Crime," CEPR Discussion Papers 5244, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Linda Datcher Loury, 2004. "Job Tenure and Personal Contacts: Good Matches or Limited Choices?," Discussion Papers Series, Department of Economics, Tufts University 0417, Department of Economics, Tufts University. [Downloadable!]
  6. Alessandra Casella & Nobuyuki Hanaki, 2005. "Information channels in labor markets: On the resilience of referral hiring," Discussion Papers 0506-05, Columbia University, Department of Economics. [Downloadable!]
  7. Mauro Sylos Labini, 2004. "Social Networks and Wages: It's All About Connections!," LEM Papers Series 2004/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  8. Giorgio Topa & Stephen Ross & Patrick Bayer, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 05-23, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  9. Casella, Alessandra & Hanaki, Nobuyuki, 2005. "Information Channels in Labour Markets. On the Resilience of Referral Hiring," CEPR Discussion Papers 4969, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour," CEPR Discussion Papers 3966, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Celen, Bogachan & Hyndman, Kyle, 2006. "Endogenous Network Formation In the Laboratory," MPRA Paper 1440, University Library of Munich, Germany. [Downloadable!]
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  12. Sergio Currarini & Paolo Pin & Matthew O. Jackson, 2007. "An Economic Model of Friendship: Homophily, Minorities and Segregation," Working Papers 2007_20, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
  13. Calvo-Armengol, Antoni & Jackson, Matthew O., 2005. "Like father, like son: Social networks, human capital investment, and social mobility," Working Papers 1242, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  14. Yannis Ioannides & Adriaan Soetevent, 2006. "Wages and Employment in a Random Social Network with Arbitrary Degree Distribution," Discussion Papers Series, Department of Economics, Tufts University 0601, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
  15. Daron Acemoglu & Munther A. Dahleh & Ilan Lobel & Asuman Ozdaglar, 2008. "Bayesian Learning in Social Networks," NBER Working Papers 14040, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Pierre-Philippe Combes & Laurent Linnemer & Michael Visser, 2006. "Publish or peer-rich ? The role of skills and networks in hiring economics professors," Research Unit Working Papers 0604, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
  17. Yannis Ioannides, 2006. "Empirics of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0611, Department of Economics, Tufts University. [Downloadable!]
  18. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University. [Downloadable!]
  19. Yves Zenou, 2007. "High Relocation Costs in Search-Matching Models: Theory and Application to Spatial Mismatch," IZA Discussion Papers 2739, Institute for the Study of Labor (IZA). [Downloadable!]
  20. YANNIS M. IOANNIDES & Adriaan R. Soetevent, 2005. "Social Networking And Individual Outcomes: Individual Decisions And Market Context," Working Papers 05-16, NET Institute, revised Oct 2005. [Downloadable!]
  21. Carbonai, Davide & Di Bartolomeo, Giovanni, 2006. "Interlocking directorates as a thrust substitute: The case of the Italian non-life insurance industry," MPRA Paper 4420, University Library of Munich, Germany. [Downloadable!]
    Other versions:
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