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Do labor market networks have an important spatial dimension?

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  • Hellerstein, Judith K.
  • Kutzbach, Mark J.
  • Neumark, David

Abstract

We test for evidence of spatial, residence-based labor market networks. Turnover is lower for workers more connected to their neighbors generally and more connected to neighbors of the same race or ethnic group. Both results are consistent with networks producing better job matches, while the latter could also reflect preferences for working with neighbors of the same race or ethnicity. For earnings, we find a robust positive effect of the overall residence-based network measure, whereas we usually find a negative effect of the same-group measure, suggesting that the overall network measure reflects productivity-enhancing positive network effects, while the same-group measure may capture a non-wage amenity.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 79 (2014)
Issue (Month): C ()
Pages: 39-58

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Handle: RePEc:eee:juecon:v:79:y:2014:i:c:p:39-58

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Urban labor markets; Spatial networks;

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References

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Cited by:
  1. Graves, Jennifer, 2013. "School calendars, child care availability and maternal employment," Journal of Urban Economics, Elsevier, vol. 78(C), pages 57-70.
  2. David Neumark & Helen Simpson, 2014. "Place-Based Policies," NBER Working Papers 20049, National Bureau of Economic Research, Inc.

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