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

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  • Judith K. Hellerstein
  • Melissa McInerney
  • David Neumark

Abstract

We specify and implement a test for the presence and importance of labor market network based on residential proximity in determining the establishments at which people work. Using matched employer-employee data at the establishment level, we measure the importance of these network effects for groups broken out by race, ethnicity, and various measures of skill. The evidence indicates that these types of labor market networks do exist and play an important role in determining the establishments where workers work, that they are more important for minorities and the less-skilled, especially among Hispanics, and that these networks appear to be race-based.

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File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd09-132.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd09-132.

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Date of creation: Mar 2010
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Handle: RePEc:hst:ghsdps:gd09-132

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  2. Judith Hellerstein & David Neumark, 2006. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," Working Papers 060710, University of California-Irvine, Department of Economics.
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  9. Bayer, Patrick & Fang, Hanming & McMillan, Robert, 2005. "Separate When Equal? Racial Inequality and Residential Segregation," Working Papers 9, Yale University, Department of Economics.
  10. Judith K. Hellerstein & David Neumark, 2002. "Ethnicity, Language, and Workplace Segregation: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 9037, National Bureau of Economic Research, Inc.
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  17. Harry J. Holzer, 1998. "Why Do Small Establishments Hire Fewer Blacks Than Large Ones?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 896-914.
  18. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
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  21. Ian Schmutte, 2010. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Working Papers 10-40, Center for Economic Studies, U.S. Census Bureau.
  22. Judith K. Hellerstein & David Neumark & Melissa McInerney, 2007. "Spatial Mismatch or Racial Mismatch?," NBER Working Papers 13161, National Bureau of Economic Research, Inc.
  23. Moscarini, Giuseppe & Thomsson, Kaj, 2006. "Occupational and Job Mobility in the US," Working Papers 19, Yale University, Department of Economics.
  24. H. J. Holzer, . "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty.
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