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Do Labor Market Networks Have An Important Spatial Dimension?

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Listed:
  • Judith K. Hellerstein
  • Mark J. Kutzbach
  • David Neumark

Abstract

We test for evidence of spatial, residence-based labor market networks. Turnover is lower for workers more connected to their neighbors generally and more connected to neighbors of the same race or ethnic group. Both results are consistent with networks producing better job matches, while the latter could also reflect preferences for working with neighbors of the same race or ethnicity. For earnings, we find a robust positive effect of the overall residence-based network measure, whereas we usually find a negative effect of the same-group measure, suggesting that the overall network measure reflects productivity enhancing positive network effects, while the same-group measure captures a non-wage amenity.

Suggested Citation

  • Judith K. Hellerstein & Mark J. Kutzbach & David Neumark, 2012. "Do Labor Market Networks Have An Important Spatial Dimension?," Working Papers 12-30, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:12-30
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    References listed on IDEAS

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    1. Christian Dustmann & Albrecht Glitz & Uta Schönberg & Herbert Brücker, 2016. "Referral-based Job Search Networks," Review of Economic Studies, Oxford University Press, vol. 83(2), pages 514-546.
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    16. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2011. "Neighbors and Coworkers: The Importance of Residential Labor Market Networks," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 659-695.
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    Cited by:

    1. Mathieu Bunel & Yannick L’Horty & Pascale Petit, 2016. "Discrimination based on place of residence and access to employment," Urban Studies, Urban Studies Journal Limited, vol. 53(2), pages 267-286, February.
    2. Emmanuel Duguet & David Gray & Yannick L'Horty & Loïc du Parquet & Pascale Petit, 2017. "Labor Market Effects of Urban Riots:an experimental assessment," TEPP Working Paper 2017-03, TEPP.
    3. Deepti Goel & Kevin Lang, 2009. "Social Ties and the Job Search of Recent Immigrants," NBER Working Papers 15186, National Bureau of Economic Research, Inc.
    4. Andrea Morescalchi, 2016. "A new career in a new town. Job search methods and regional mobility of unemployed workers," ERSA conference papers ersa16p307, European Regional Science Association.
    5. repec:eee:juecon:v:101:y:2017:i:c:p:27-44 is not listed on IDEAS
    6. Graves, Jennifer, 2013. "School calendars, child care availability and maternal employment," Journal of Urban Economics, Elsevier, vol. 78(C), pages 57-70.
    7. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, Elsevier.
    8. Bosquet, Clément & Combes, Pierre-Philippe, 2017. "Sorting and agglomeration economies in French economics departments," Journal of Urban Economics, Elsevier, vol. 101(C), pages 27-44.
    9. Chen, Yuanyuan & Wang, Le & Zhang, Min, 2017. "Informal Search, Bad Search? The Effects of Job Search Method on Wages among Rural Migrants in Urban China," IZA Discussion Papers 11058, Institute for the Study of Labor (IZA).
    10. Mota, Nuno & Patacchini, Eleonora & Rosenthal, Stuart S., 2016. "Neighborhood Effects, Peer Classification, and the Decision of Women to Work," IZA Discussion Papers 9985, Institute for the Study of Labor (IZA).
    11. Longhi, Simonetta, 2017. "Spatial-Ethnic Inequalities: The Role of Location in the Estimation of Ethnic Wage Differentials," IZA Discussion Papers 11073, Institute for the Study of Labor (IZA).
    12. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, Elsevier.
    13. Franziska Hawranek & Norbert Schanne, 2014. "Your very private job agency: Job referrals based on residential location networks," ERSA conference papers ersa14p49, European Regional Science Association.
    14. Bosquet, Clément & Combes, Pierre-Philippe, 2017. "Sorting and agglomeration economies in French economics departments," Journal of Urban Economics, Elsevier, vol. 101(C), pages 27-44.
    15. Patacchini, Eleonora & Picard, Pierre M & Zenou, Yves, 2015. "Urban Social Structure, Social Capital and Spatial Proximity," CEPR Discussion Papers 10501, C.E.P.R. Discussion Papers.
    16. repec:eee:juecon:v:99:y:2017:i:c:p:120-135 is not listed on IDEAS
    17. Del Bello, Carlo L. & Patacchini, Eleonora & Zenou, Yves, 2015. "Neighborhood Effects in Education," IZA Discussion Papers 8956, Institute for the Study of Labor (IZA).
    18. Meta Brown & Elizabeth Setren & Giorgio Topa, 2016. "Do Informal Referrals Lead to Better Matches? Evidence from a Firm's Employee Referral System," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 161-209.
    19. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, Elsevier.
    20. Zwysen, Wouter & Longhi, Simonetta, 2016. "Labour market disadvantage of ethnic minority British graduates: university choice, parental background or neighbourhood?," ISER Working Paper Series 2016-02, Institute for Social and Economic Research.
    21. Henry R. Hyatt, 2015. "Co-Working Couples and the Similar Jobs of Dual-Earner Households," Working Papers 15-23, Center for Economic Studies, U.S. Census Bureau.
    22. Matthew R. Graham & Mark J. Kutzbach & Danielle H. Sandler, 2017. "Developing a Residence Candidate File for Use With Employer-Employee Matched Data," Working Papers 17-40, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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