A Social Network Analysis of Occupational Segregation

Marco van der Leij and Ioan Sebastian Buhai

No 2008.31, Working Papers from Fondazione Eni Enrico Mattei

Abstract: 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 for job search, then expected homophily 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 labor market. We derive the conditions for wage and unemployment inequality in the segregation equilibria and characterize first and second best social welfare optima. Surprisingly, we find that socially optimal policies involve segregation.

Keywords: Social Networks; Homophily; Inbreeding Bias; Occupational Segregation; Labor Market Inequality; Social Welfare (search for similar items in EconPapers)
JEL-codes: J24 J31 J70 Z13 (search for similar items in EconPapers)
Date: 2008-03
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: A Social Network Analysis of Occupational Segregation (2023)
Working Paper: A Social Network Analysis of Occupational Segregation (2022)
Working Paper: A Social Network Analysis of Occupational Segregation (2010)
Working Paper: A Social Network Analysis of Occupational Segregation (2008)
Working Paper: A Social Network Analysis of Occupational Segregation (2006)
Working Paper: A Social Network Analysis of Occupational Segregation (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2008.31

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