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

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Author Info

  • Borghans, Lex

    ()
    (Maastricht University)

  • ter Weel, Bas

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Weinberg, Bruce A.

    ()
    (Ohio State University)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1494.

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Length: 62 pages
Date of creation: Feb 2005
Date of revision:
Publication status: published in: Industrial and Labor Relations Review, 2014, 67 (2), 287-334
Handle: RePEc:iza:izadps:dp1494

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Keywords: social capital; economics of minorities and races and gender; wage level and structure; interpersonal interactions;

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References

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Cited by:
  1. Francine D. Blau & Lawrence M. Kahn, 2004. "The US Gender Pay Gap in the 1990s: Slowing Convergence," NBER Working Papers 10853, National Bureau of Economic Research, Inc.
  2. Suzanne Kok, 2013. "Matching worker skills to job tasks in the Netherlands: Sorting into cities for better careers," CPB Discussion Paper 247, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Shintaro Yamaguchi, 2013. "Changes in Returns to Task-Specific Skills and Gender Wage Gap," Global COE Hi-Stat Discussion Paper Series gd12-275, Institute of Economic Research, Hitotsubashi University.
  4. Bas ter Weel & Tyas Prevoo, 2013. "The Importance of Early Conscientiousness for Socio-Economic Outcomes: Evidence from the British Cohort Study," CPB Discussion Paper 251, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Bas ter Weel & Semih Akcomak & Lex Borghans, 2010. "Measuring and interpreting trends in the division of labour in the Netherlands," CPB Discussion Paper 161, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Suzanne Kok, 2013. "Returns to Communication in Specialised and Diversified US Cities," CPB Discussion Paper 236, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Regula Geel & Uschi Backes-Gellner, 2009. "Occupational Mobility Within and Between Skill Clusters: An Empirical Analysis Based on the Skill-Weights Approach," Economics of Education Working Paper Series 0047, University of Zurich, Institute for Strategy and Business Economics (ISU).
  8. Prevoo, Tyas & ter Weel, Bas, 2013. "The Importance of Early Conscientiousness for Socio-Economic Outcomes: Evidence from the British Cohort Study," IZA Discussion Papers 7537, Institute for the Study of Labor (IZA).
  9. Okumura, Tsunao & Usui, Emiko, 2010. "Do Parents' Social Skills Influence Their Children's Sociability?," PIE/CIS Discussion Paper 466, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  10. Kohn, Karsten & Antonczyk, Dirk, 2011. "The Aftermath of Reunification: Sectoral Transition, Gender, and Rising Wage Inequality in East Germany," IZA Discussion Papers 5708, Institute for the Study of Labor (IZA).
  11. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, Elsevier.
  12. Alan B. Krueger & David A. Schkade, 2007. "Sorting in the Labor Market: Do Gregarious Workers Flock to Interactive Jobs?," Working Papers 63, Princeton University, Department of Economics, Center for Economic Policy Studies..
  13. Wolf, Elke & Heinze, Anja, 2007. "How to Limit Discrimination? Analyzing the Effects of Innovative Workplace Practices on Intra-Firm Gender Wage Gaps Using Linked Employer-Employee Data," ZEW Discussion Papers 07-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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