IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3750.html
   My bibliography  Save this paper

Measuring the Importance of Labor Market Networks

Author

Listed:
  • Hellerstein, Judith K.

    (University of Maryland)

  • McInerney, Melissa

    (College of William and Mary)

  • Neumark, David

    (University of California, Irvine)

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

  • Hellerstein, Judith K. & McInerney, Melissa & Neumark, David, 2008. "Measuring the Importance of Labor Market Networks," IZA Discussion Papers 3750, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp3750
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3750.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.
    2. Deepti Goel & Kevin Lang, 2019. "Social Ties and the Job Search of Recent Immigrants," ILR Review, Cornell University, ILR School, vol. 72(2), pages 355-381, March.
    3. Fredrik Andersson & Mónica García-Pérez & John Haltiwanger & Kristin McCue & Seth Sanders, 2014. "Workplace Concentration of Immigrants," Demography, Springer;Population Association of America (PAA), vol. 51(6), pages 2281-2306, December.
    4. Jeanne Lafortune & José Tessada, 2012. "Smooth(er) Landing? The Dynamic Role of Networks in the Location and Occupational Choice of Immigrants," Working Papers ClioLab 14, EH Clio Lab. Instituto de Economía. Pontificia Universidad Católica de Chile.
    5. Delia Furtado & Nikolaos Theodoropoulos, 2009. "Intermarriage and Immigrant Employment: The Role of Networks," CReAM Discussion Paper Series 0906, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    6. 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.
    7. Ulf Nielsson & Herdis Steingrimsdottir, 2018. "The signalling value of education across genders," Empirical Economics, Springer, vol. 54(4), pages 1827-1854, June.
    8. Lorenzo Cappellari & Konstantinos Tatsiramos, 2010. "Friends' Networks and Job Finding Rates," CESifo Working Paper Series 3243, CESifo.
    9. Fredrik Andersson & Mónica García-Pérez & John Haltiwanger & Kristin McCue & Seth Sanders, 2014. "Workplace Concentration of Immigrants," Demography, Springer;Population Association of America (PAA), vol. 51(6), pages 2281-2306, December.
    10. Xin, Guangyi, 2017. "Social Interaction and Labour Market Outcomes," MPRA Paper 80976, University Library of Munich, Germany.
    11. Simon Gemkow & Michael Neugart, 2011. "Referral hiring, endogenous social networks, and inequality: an agent-based analysis," Journal of Evolutionary Economics, Springer, vol. 21(4), pages 703-719, October.
    12. Badi H. Baltagi & Ying Deng & Xiangjun Ma, 2018. "Network effects on labor contracts of internal migrants in China: a spatial autoregressive model," Empirical Economics, Springer, vol. 55(1), pages 265-296, August.
    13. Rebien, Martina, 2019. "Do social networks mitigate stigma effects from long-term unemployment?," IAB-Discussion Paper 201916, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Judith K. Hellerstein & Melissa Mcinerney & David Neumark, 2010. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," Annals of Economics and Statistics, GENES, issue 99-100, pages 141-167.
    15. Ian M. Schmutte, 2015. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 33(1), pages 1-32.
    16. Eva Arceo, 2010. "Job Search, Social Interactions and Labor Market Performance of Low-Skilled Immigrants," Working papers DTE 489, CIDE, División de Economía.
    17. Cassar, Alessandra & Rigdon, Mary, 2011. "Trust and trustworthiness in networked exchange," Games and Economic Behavior, Elsevier, vol. 71(2), pages 282-303, March.
    18. Tatsiramos, Konstantinos & Cappellari, Lorenzo, 2011. "Friends’ networks and job finding rates," ISER Working Paper Series 2011-21, Institute for Social and Economic Research.
    19. Niki Dickerson Lockette & William E. Spriggs, 2016. "Wage Dynamics and Racial and Ethnic Occupational Segregation Among Less-Educated Men in Metropolitan Labor Markets," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(1), pages 35-56, March.

    More about this item

    Keywords

    immigrants; networks; race; ethnicity;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3750. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.