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Do Labor Market Networks Have An Important Spatial Dimension?

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

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 captures a non-wage amenity.

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File URL: ftp://ftp2.census.gov/ces/wp/2012/CES-WP-12-30.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 12-30.

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Length: 56 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:cen:wpaper:12-30

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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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