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Neighbors and Co-Workers: The Importance of Residential Labor Market Networks

Author

Listed:
  • Judith Hellerstein
  • Melissa McInerney
  • David Neumark

Abstract

We 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.

Suggested Citation

  • Judith Hellerstein & Melissa McInerney & David Neumark, 2009. "Neighbors and Co-Workers: The Importance of Residential Labor Market Networks," Working Papers 09-01, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:09-01
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    File URL: https://www2.census.gov/ces/wp/2009/CES-WP-09-01.pdf
    File Function: First version, 2009
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    More about this item

    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

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