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A Social Network Analysis of Occupational Segregation

  • Buhai, Sebastian

    ()

    (Department of Economics, Aarhus School of Business)

  • van der Leij, Marco

    (Tinbergen Institute and Erasmus University)

We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important in getting a job, then expected inbreeding bias in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labour market. We derive the conditions for persistent wage and unemployment inequality in the segregation equilibria. Our framework is proposed as complementary to existing theories used to explain labour market inequalities between groups divided by race, ethnicity or gender

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File URL: http://www.hha.dk/nat/wper/06-11_sebu.pdf
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 06-11.

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Length: 33 pages
Date of creation: 07 Nov 2006
Date of revision:
Handle: RePEc:hhs:aareco:2006_011
Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx

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