IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v118y2020ics0094119020300358.html
   My bibliography  Save this article

Social connectedness in urban areas

Author

Listed:
  • Bailey, Michael
  • Farrell, Patrick
  • Kuchler, Theresa
  • Stroebel, Johannes

Abstract

We use de-identified and aggregated data from Facebook to explore the spatial structure of social networks in the New York metro area. We find that a substantial share of urban residents’ connections are to individuals who are located nearby. We also highlight the importance of transportation infrastructure in shaping urban social networks by showing that social connectedness declines faster in travel time and travel cost than it does in geographic distance. We find that areas that are more socially connected with each other have stronger commuting flows, even after controlling for geographic distance and ease of travel. We also document significant heterogeneity in the geographic breadth of social networks across New York zip codes, and show that this heterogeneity correlates with access to public transit. Zip codes with geographically broader social networks also have higher incomes, higher education levels, and more high-quality entrepreneurial activity. We also explore the social connections between New York zip codes and foreign countries, and highlight how these are related to past migration movements.

Suggested Citation

  • Bailey, Michael & Farrell, Patrick & Kuchler, Theresa & Stroebel, Johannes, 2020. "Social connectedness in urban areas," Journal of Urban Economics, Elsevier, vol. 118(C).
  • Handle: RePEc:eee:juecon:v:118:y:2020:i:c:s0094119020300358
    DOI: 10.1016/j.jue.2020.103264
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119020300358
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jue.2020.103264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sato, Yasuhiro & Zenou, Yves, 2015. "How urbanization affect employment and social interactions," European Economic Review, Elsevier, vol. 75(C), pages 131-155.
    2. Büchel, Konstantin & Ehrlich, Maximilian v., 2020. "Cities and the structure of social interactions: Evidence from mobile phone data," Journal of Urban Economics, Elsevier, vol. 119(C).
    3. Kelly Shue, 2013. "Executive Networks and Firm Policies: Evidence from the Random Assignment of MBA Peers," The Review of Financial Studies, Society for Financial Studies, vol. 26(6), pages 1401-1442.
    4. David Marmaros & Bruce Sacerdote, 2006. "How Do Friendships Form?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 79-119.
    5. Michael Bailey & Eduardo Dávila & Theresa Kuchler & Johannes Stroebel, 2019. "House Price Beliefs And Mortgage Leverage Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(6), pages 2403-2452.
    6. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527, Elsevier.
    7. Patacchini, Eleonora & Barwick, Panle Jia & Liu, Yanyan & Wu, Qi, 2019. "Information, Mobile Communication, and Referral Effects," CEPR Discussion Papers 13786, C.E.P.R. Discussion Papers.
    8. Mossay, P. & Picard, P.M., 2011. "On spatial equilibria in a social interaction model," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2455-2477.
    9. Brueckner, Jan K. & Largey, Ann G., 2008. "Social interaction and urban sprawl," Journal of Urban Economics, Elsevier, vol. 64(1), pages 18-34, July.
    10. Ioannides, Yannis M., 2015. "Neighborhoods to nations via social interactions," Economic Modelling, Elsevier, vol. 48(C), pages 5-15.
    11. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    12. Michael Bailey & Drew Johnston & Theresa Kuchler & Johannes Stroebel & Arlene Wong, 2022. "Peer Effects in Product Adoption," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 488-526, July.
    13. Michael Bailey & Rachel Cao & Theresa Kuchler & Johannes Stroebel & Arlene Wong, 2018. "Social Connectedness: Measurement, Determinants, and Effects," Journal of Economic Perspectives, American Economic Association, vol. 32(3), pages 259-280, Summer.
    14. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-01447842, HAL.
    15. Matthew O. Jackson, 2014. "Networks in the Understanding of Economic Behaviors," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 3-22, Fall.
    16. Arent Greve & Janet W. Salaff, 2003. "Social Networks and Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 28(1), pages 1-22, January.
    17. Picard, Pierre M. & Zenou, Yves, 2018. "Urban spatial structure, employment and social ties," Journal of Urban Economics, Elsevier, vol. 104(C), pages 77-93.
    18. Ian M. Schmutte, 2015. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 33(1), pages 1-32.
    19. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, November.
    20. Edward L. Glaeser, 2005. "Urban Colossus: Why is New York America's Largest City?," Harvard Institute of Economic Research Working Papers 2073, Harvard - Institute of Economic Research.
    21. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    22. Theresa Kuchler & Dominic Russel & Johannes Stroebel, 2020. "The Geographic Spread of COVID-19 Correlates with the Structure of Social Networks as Measured by Facebook," NBER Working Papers 26990, National Bureau of Economic Research, Inc.
    23. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-03572533, HAL.
    24. Raj Chetty & John N Friedman & Emmanuel Saez & Nicholas Turner & Danny Yagan, 2020. "Income Segregation and Intergenerational Mobility Across Colleges in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(3), pages 1567-1633.
    25. Bailey, Michael & Gupta, Abhinav & Hillenbrand, Sebastian & Kuchler, Theresa & Richmond, Robert & Stroebel, Johannes, 2021. "International trade and social connectedness," Journal of International Economics, Elsevier, vol. 129(C).
    26. Diana Mok & Barry Wellman & Juan Carrasco, 2010. "Does Distance Matter in the Age of the Internet?," Urban Studies, Urban Studies Journal Limited, vol. 47(13), pages 2747-2783, November.
    27. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    28. Edward L. Glaeser & Hyunjin Kim & Michael Luca, 2019. "Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 249-273, National Bureau of Economic Research, Inc.
    29. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    30. Leah Brooks & Byron Lutz, 2019. "Vestiges of Transit: Urban Persistence at a Microscale," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 385-399, July.
    31. Edward Ludwig Glaeser, 2005. "Urban colossus: why is New York America's largest city?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 7-24.
    32. Theresa Kuchler & Yan Li & Lin Peng & Johannes Stroebel & Dexin Zhou, 2022. "Social Proximity to Capital: Implications for Investors and Firms," The Review of Financial Studies, Society for Financial Studies, vol. 35(6), pages 2743-2789.
    33. Helsley, Robert W. & Zenou, Yves, 2014. "Social networks and interactions in cities," Journal of Economic Theory, Elsevier, vol. 150(C), pages 426-466.
    34. Edward L. Glaeser & Bryce Millett Steinberg, 2017. "Transforming cities: does urbanization promote democratic change?," Regional Studies, Taylor & Francis Journals, vol. 51(1), pages 58-68, January.
    35. Bairoch, Paul & Braider, Christopher, 1991. "Cities and Economic Development," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226034669, October.
    36. Jorge Guzman & Scott Stern, 2016. "The State of American Entrepreneurship: New Estimates of the Quality and Quantity of Entrepreneurship for 32 US States, 1988-2014," NBER Working Papers 22095, National Bureau of Economic Research, Inc.
    37. Seth D. Zimmerman, 2019. "Elite Colleges and Upward Mobility to Top Jobs and Top Incomes," American Economic Review, American Economic Association, vol. 109(1), pages 1-47, January.
    38. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2020. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 886-914, September.
    39. Donald R. Davis & Jonathan I. Dingel & Joan Monras & Eduardo Morales, 2019. "How Segregated Is Urban Consumption?," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1684-1738.
    40. Bailey, Michael & Kuchler, Theresa & Russel, Dominic & State, Bogdan & Stroebel, Johannes, 2020. "Social Connectedness in Europe," SocArXiv 3wh67, Center for Open Science.
    41. Michael Bailey & Theresa Kuchler & Dominic Russel & Bogdan State & Johannes Stroebel, 2020. "The Determinants and Effects of Social Connectedness in Europe," CESifo Working Paper Series 8310, CESifo.
    42. Michael Bailey & Ruiqing Cao & Theresa Kuchler & Johannes Stroebel, 2018. "The Economic Effects of Social Networks: Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2224-2276.
    43. Kowald, Matthias & van den Berg, Pauline & Frei, Andreas & Carrasco, Juan-Antonio & Arentze, Theo & Axhausen, Kay & Mok, Diana & Timmermans, Harry & Wellman, Barry, 2013. "Distance patterns of personal networks in four countries: a comparative study," Journal of Transport Geography, Elsevier, vol. 31(C), pages 236-248.
    44. Robert W. Helsley & William C. Strange, 2014. "Coagglomeration, Clusters, and the Scale and Composition of Cities," Journal of Political Economy, University of Chicago Press, vol. 122(5), pages 1064-1093.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Jun Sung & Patacchini, Eleonora & Picard, Pierre M. & Zenou, Yves, 2017. "Urban Interactions," Working Paper Series 1192, Research Institute of Industrial Economics.
    2. Jun Sung Kim & Eleonora Patacchini & Pierre M. Picard & Yves Zenou, 2023. "Spatial interactions," Quantitative Economics, Econometric Society, vol. 14(4), pages 1295-1335, November.
    3. Kuchler, Theresa & Russel, Dominic & Stroebel, Johannes, 2022. "JUE Insight: The geographic spread of COVID-19 correlates with the structure of social networks as measured by Facebook," Journal of Urban Economics, Elsevier, vol. 127(C).
    4. Büchel, Konstantin & Ehrlich, Maximilian v., 2020. "Cities and the structure of social interactions: Evidence from mobile phone data," Journal of Urban Economics, Elsevier, vol. 119(C).
    5. Bailey, Michael & Gupta, Abhinav & Hillenbrand, Sebastian & Kuchler, Theresa & Richmond, Robert & Stroebel, Johannes, 2021. "International trade and social connectedness," Journal of International Economics, Elsevier, vol. 129(C).
    6. Picard, Pierre M. & Zenou, Yves, 2018. "Urban spatial structure, employment and social ties," Journal of Urban Economics, Elsevier, vol. 104(C), pages 77-93.
    7. Zenou, Yves & picard, pierre & Patacchini, Eleonora, 2015. "Urban Social Structure, Social Capital and Spatial Proximity," CEPR Discussion Papers 10501, C.E.P.R. Discussion Papers.
    8. Diemer, Andreas & Regan, Tanner, 2022. "No inventor is an island: Social connectedness and the geography of knowledge flows in the US," Research Policy, Elsevier, vol. 51(2).
    9. Diemer, Andreas & Regan, Tanner Weldon Dean, 2020. "No inventor is an island: social connectedness and the geography of knowledge flows in the US," LSE Research Online Documents on Economics 121852, London School of Economics and Political Science, LSE Library.
    10. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    11. Oliver Rehbein & Simon Rother, 2020. "The Role of Social Networks in Bank Lending," ECONtribute Discussion Papers Series 033, University of Bonn and University of Cologne, Germany.
    12. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute of Labor Economics (IZA).
    13. Cramer, Kim Fe & Koont, Naz, 2021. "Peer effects in deposit markets," LSE Research Online Documents on Economics 119192, London School of Economics and Political Science, LSE Library.
    14. Hu, Zhongchen, 2022. "Social interactions and households’ flood insurance decisions," Journal of Financial Economics, Elsevier, vol. 144(2), pages 414-432.
    15. Michael Bailey & Drew Johnston & Martin Koenen & Theresa Kuchler & Dominic Russel & Johannes Stroebel, 2022. "The Social Integration of International Migrants: Evidence from the Networks of Syrians in Germany," CESifo Working Paper Series 9680, CESifo.
    16. Pierre Magontier, Maximilian v. Ehrlich, Markus Schl pfer, 2022. "The Fragility of Urban Social Networks - Mobility as a City Glue -," Diskussionsschriften credresearchpaper38, Universitaet Bern, Departement Volkswirtschaft - CRED.
    17. Zackary B. Hawley & Geoffrey K. Turnbull, 2019. "Social Interaction and Urban Location Decisions," The Journal of Real Estate Finance and Economics, Springer, vol. 59(1), pages 1-26, July.
    18. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    19. Sato, Yasuhiro & Zenou, Yves, 2015. "How urbanization affect employment and social interactions," European Economic Review, Elsevier, vol. 75(C), pages 131-155.
    20. Nguyen, Giang & Nguyen, My & Pham, Anh Viet & Pham, Man Duy (Marty), 2023. "Navigating investment decisions with social connectedness: Implications for venture capital," Journal of Banking & Finance, Elsevier, vol. 155(C).

    More about this item

    Keywords

    Social Connectedness; Agglomeration Externalities; Transportation Infrastructure;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:118:y:2020:i:c:s0094119020300358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622905 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.