Ethnic Networks and Employment Outcomes

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Ethnic Networks and Employment Outcomes

Author Info

Patacchini, Eleonora () (University of Rome La Sapienza)
Zenou, Yves () (Stockholm University)

Additional information is available for the following registered author(s):

Eleonora Patacchini

Abstract

We analyse the effect of strong and weak ties on the individual probability of finding a job. Using the dynamic model of Calvó-Armengol and Jackson (2004), two results are put forward: (i) the individual probability of finding a job is increasing in the number of strong and weak ties; (ii) the longer the length of ties, the lower is this effect. We approximate the social space by the geographical space. Ethnicity is the chosen dimension along which agents’ social contacts develop and, as a result, we use ethnic population density to capture social interactions within the given ethnic group. Using a panel of local authority-level data in England between 1993 and 2003, we find that (i) the higher the percentage of a given ethnic group living nearby, the higher the employment rate of this ethnic group; (ii) this effect decays very rapidly with distance, losing significance beyond approximately 90 minutes travel time.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3331.

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Length: 33 pages
Date of creation: Feb 2008
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Handle: RePEc:iza:izadps:dp3331

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Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-03-15 (All new papers)
NEP-GEO-2008-03-15 (Economic Geography)
NEP-LAB-2008-03-15 (Labour Economics)
NEP-MIG-2008-03-15 (Economics of Human Migration)
NEP-SOC-2008-03-15 (Social Norms & Social Capital)
NEP-URE-2008-03-15 (Urban & Real Estate Economics)

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