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Do labor market networks have an important spatial dimension?

Author

Listed:
  • Judith K. Hellerstein

    () (University of Maryland & NBER)

  • Mark J. Kutzbach

    () (U.S. Bureau of the Census)

  • David Neumark

    () (UCI, NBER & IZA)

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 may capture a non-wage amenity.

Suggested Citation

  • Judith K. Hellerstein & Mark J. Kutzbach & David Neumark, 2013. "Do labor market networks have an important spatial dimension?," Working Papers 2013/20, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:doc2013-20
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Networks; job matches; wages; turnover;

    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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