Measuring the Importance of Labor Market Networks
AbstractWe specify and implement a test for the importance of network effects in determining the establishments at which people work, using recently-constructed matched employer-employee data at the establishment level. We explicitly measure the importance of network effects for groups broken out by race, ethnicity, and various measures of skill, for networks generated by residential proximity. The evidence indicates that labor market networks play an important role in hiring, more so for minorities and the less-skilled, especially among Hispanics, and that labor market networks appear to be race-based.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3750.
Length: 46 pages
Date of creation: Oct 2008
Date of revision:
Publication status: published as 'Neighbors and Coworkers: The Importance of Residential Labor Market Networks' in: Journal of Labor Economics, 2011, 29 (4), 659 - 695
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Find related papers by JEL classification:
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-21 (All new papers)
- NEP-LAB-2008-10-21 (Labour Economics)
- NEP-MIG-2008-10-21 (Economics of Human Migration)
- NEP-SOC-2008-10-21 (Social Norms & Social Capital)
- NEP-URE-2008-10-21 (Urban & Real Estate Economics)
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