Social Networks in Labor Markets: The Effects of Symmetry, Randomness and Exclusion on Output and Inequality
AbstractIn this paper we study how some characteristics of the topology of social networks affect the dynamics of output and inequality. Our main findings are: I) symmetric networks with ``strong ties'' produce higher output and lower inequality than asymmetric networks; II) the introduction of ``weak ties'' has a larger positive effect on output and inequality if they are associated with symmetric networks; III) with homogeneous agents, the elimination of social exclusion increases output and reduces inequality; IV) in random networks, an increase in network density increases output and reduces inequality, but there are clear decreasing returns; V) random networks with the same density produce the same level of output and inequality, irrespectively of the relative values of density's determinants, i. e. the number of agents and the probability of link formation. On the contrary, in fixed networks the same density can be associated to different levels of output and inequality, according to the network geometry
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Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 277.
Date of creation: 11 Nov 2005
Date of revision:
Social Networks Structures; Wage Inequality; Aggregate Output; Weak Ties;
Find related papers by JEL classification:
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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- Marco J. van der Leij & I. Sebastian Buhai, 2008.
"A Social Network Analysis of Occupational Segregation,"
2008.31, Fondazione Eni Enrico Mattei.
- Sebastian Buhai & Marco van der Leij, 2006. "A Social Network Analysis of Occupational Segregation," Tinbergen Institute Discussion Papers 06-016/1, Tinbergen Institute, revised 08 Nov 2006.
- Buhai, Sebastian & van der Leij, Marco, 2006. "A Social Network Analysis of Occupational Segregation," Working Papers 06-11, University of Aarhus, Aarhus School of Business, Department of Economics.
- Marco van der Leij & Sebastian Buhai, 2010. "A Social Network Analysis of Occupational Segregation," 2010 Meeting Papers 554, Society for Economic Dynamics.
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