Social networks and labor market inequality between ethnicities and races

Ott Toomet, Marco van der Leij and Meredith Rolfe

Network Science, 2013, vol. 1, issue 3, 321-352

Abstract: This paper analyzes the relationship between unexplained racial/ethnic wage differentials on the one hand and social network segregation, as measured by inbreeding homophily, on the other. Our analysis is based on both the US and Estonian surveys, supplemented with the Estonian telephone communication data. In the case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the US case we consider the regional variation in black--white differentials. Our analysis finds a strong relationship between the size of the wage differential and network segregation: Regions with more segregated social networks exhibit larger unexplained wage gaps.

Date: 2013
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Working Paper: Social Networks and Labor Market Inequality between Ethnicities and Races (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:netsci:v:1:y:2013:i:03:p:321-352_00

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