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A Social Network Analysis of Occupational Segregation

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  • Buhai, Sebastian

    ()
    (Department of Economics, Aarhus School of Business)

  • van der Leij, Marco

    (Tinbergen Institute and Erasmus University)

Abstract

We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important in getting a job, then expected inbreeding bias in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labour market. We derive the conditions for persistent wage and unemployment inequality in the segregation equilibria. Our framework is proposed as complementary to existing theories used to explain labour market inequalities between groups divided by race, ethnicity or gender

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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 06-11.

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Length: 33 pages
Date of creation: 07 Nov 2006
Date of revision:
Handle: RePEc:hhs:aareco:2006_011

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Related research

Keywords: Social Networks; Inbreeding Bias; Occupational Segregation; Labour Market Inequality;

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References

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Citations

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Cited by:
  1. Ott Toomet & Marco van der Leij & Meredith Rolfe, 2012. "Social Networks and Labor Market Inequality between Ethnicities and Races," Tinbergen Institute Discussion Papers 12-120/II, Tinbergen Institute.
  2. Sergio Currarini & Fernando Vega Redondo, 2010. "Search and Homophily in Social Networks," Working Papers 2010_24, Department of Economics, University of Venice "Ca' Foscari".
  3. Crespo, Nuno & Simoes, Nadia & Moreira, Sandrina B., 2013. "Gender Differences in Occupational Mobility – Evidence from Portugal," MPRA Paper 49195, University Library of Munich, Germany.
  4. De Martí, Joan & Zenou, Yves, 2009. "Ethnic Identity and Social Distance in Friendship Formation," CEPR Discussion Papers 7566, C.E.P.R. Discussion Papers.
  5. Pothier, David, 2012. "Referral networks and the allocation of talent," MPRA Paper 39895, University Library of Munich, Germany.
  6. POTHIER, David, 2012. "Referral Networks and the Allocation of Talent," Economics Working Papers ECO2012/18, European University Institute.
  7. Kahanec, Martin, 2007. "Ethnic Competition and Specialization," IZA Discussion Papers 3167, Institute for the Study of Labor (IZA).

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