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Neighbors and Coworkers: The Importance of Residential Labor Market Networks

  • Judith K. Hellerstein
  • Melissa McInerney
  • David Neumark

We specify and implement a test for the presence and importance of labor market networks based on residential proximity, in determining the establishments at which people work. Using matched employer-employee data at the establishment level, we measure the importance of these network effects for groups broken out by race, ethnicity, and measures of skill. The evidence indicates that these types of labor market networks do exist and play an important role in determining the establishments where workers work; that they are more important for minorities and the less skilled, especially among Hispanics; and that they appear to be race based.

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File URL: http://www.jstor.org/stable/pdfplus/10.1086/660776
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File URL: http://www.jstor.org/stable/full/10.1086/660776
Download Restriction: Access to the online full text or PDF requires a subscription.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 29 (2011)
Issue (Month): 4 ()
Pages: 659 - 695

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Handle: RePEc:ucp:jlabec:doi:10.1086/660776
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