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Wage Determination in Social Occupations: The Role of Individual Social Capital

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Abstract

We make use of predicted social and civic activities (social capital) to account for selection into \"social\" occupations. Individual selection accounts for more than the total difference in wages observed between social and nonsocial occupations. The role that individual social capital plays in selecting into these occupations and the importance of selection in explaining wage differences across occupations is similar for both men and women. We make use of restricted data from the 2000 decennial census and the 2000 Social Capital Community Benchmark Survey. Individual social capital is instrumented by distance-weighted surrounding census tract characteristics.

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  • Julie L. Hotchkiss & Anil Rupasingha, 2016. "Wage Determination in Social Occupations: The Role of Individual Social Capital," FRB Atlanta Working Paper 2016-12, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2016-12
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    More about this item

    Keywords

    social capital; wage differentials; occupational choice; switching regression; nonpublic data; factor analysis;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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