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Neighbors and Co-Workers: The Importance of Residential Labor Market Networks

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  • Judith Hellerstein
  • Melissa McInerney
  • David Neumark

Abstract

We specify and implement a test for the importance of network effects in determining the establishments at which people work, using recently-constructed matched employer-employee data at the establishment level. We explicitly measure the importance of network effects for groups broken out by race, ethnicity, and various measures of skill, for networks generated by residential proximity. The evidence indicates that labor market networks play an important role in hiring, more so for minorities and the less-skilled, especially among Hispanics, and that labor market networks appear to be race-based.

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File URL: ftp://ftp2.census.gov/ces/wp/2009/CES-WP-09-01.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-01.

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Length: 47 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:cen:wpaper:09-01

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  21. Walter S. McManus, 1990. "Labor Market Effects of Language Enclaves: Hispanic Men in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 228-252.
  22. H. J. Holzer, . "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1119-97, University of Wisconsin Institute for Research on Poverty.
  23. Moscarini, Giuseppe & Thomsson, Kaj, 2006. "Occupational and Job Mobility in the US," Working Papers, Yale University, Department of Economics 19, Yale University, Department of Economics.
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