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A Social Network Analysis of Occupational Segregation

  • Marco van der Leij

    (University of Alicante)

  • Sebastian Buhai

    (Aarhus 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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Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 554.

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Date of creation: 2010
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Handle: RePEc:red:sed010:554
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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