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People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups

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Author Info
Borghans,Lex
Weel,Bas,ter
Weinberg,Bruce (ROA rm)

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Abstract

Despite indications that interpersonal interactions are important for understanding individual labor-market outcomes and have become more important over the last decades, there is little analysis by economists. This paper shows that interpersonal interactions are important determinants of labor-market outcomes, including occupations and wages. We show that technological and organizational changes have increased the importance of interpersonal interactions in the workplace. We particularly focus on how the increased importance of interpersonal interactions has affected the labor-market outcomes of underrepresented groups. We show that the acceleration in the rate of increase in the importance of interpersonal interactions between the late 1970s and early 1990s can help explain why women’s wages increased more rapidly, while the wages of blacks grew more slowly over these years relative to earlier years.

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Publisher Info
Paper provided by Maastricht : ROA, Researchcentrum voor Onderwijs en Arbeidsmarkt in its series Research Memoranda with number 002.

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Date of creation: 2005
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Handle: RePEc:dgr:umaror:2005002

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Keywords: education training and the labour market

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  1. Francine D. Blau & Lawrence M. Kahn, 2006. "The U.S. Gender Pay Gap in the 1990s: Slowing Convergence," IZA Discussion Papers 2176, Institute for the Study of Labor (IZA). [Downloadable!]
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