Inequality is rising where social network segregation interacts with urban topology

Gergő Tóth (), Johannes Wachs, Riccardo Di Clemente, Ákos Jakobi (), Bence Ságvári (), János Kertész () and Balázs Lengyel
Additional contact information
Gergő Tóth: Agglomeration and Social Networks Lendület Research Group, Centre for Economic-and Regional Studies, Budapest, Hungaryand Spatial Dynamics Lab, University College Dublin, Dublin, Ireland
Ákos Jakobi: Department of Regional Science, Eötvös Loránd University, Budapest, Hungary and Institute of Advanced Studies, Kőszeg, Hungary
Bence Ságvári: CSS-Recens, Centre for Social Sciences, Budapest, Hungary and International Business School Budapest, Budapest, Hungary
János Kertész: Department of Network and Data Science, Central European University, Budapest, Hungary

No 2116, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: Social networks amplify inequalities by fundamental mechanisms of social tie formation such as homophily and triadic closure. These forces sharpen social segregation, which is reflected in fragmented social network structure. Geographical impediments such as distance and physical or administrative boundaries also reinforce social segregation. Yet, less is known about the joint relationships between social network structure, urban geography, and inequality. In this paper we analyze an online social network and find that the fragmentation of social networks is significantly higher in towns in which residential neighborhoods are divided by physical barriers such as rivers and railroads. Towns in which neighborhoods are relatively distant from the center of town and amenities are spatially concentrated are also more socially segregated. Using a two-stage model, we show that these urban geography features have significant relationships with income inequality via social network fragmentation. In other words, the geographic features of a place can compound economic inequalities via social networks.

Keywords: social networks; income inequality; social segregation; network fragmentation; geographicalcal boundaries; urban topology (search for similar items in EconPapers)
JEL-codes: C36 D85 I32 N34 R23 Z13 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2021-03
New Economics Papers: this item is included in nep-net, nep-soc and nep-ure
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Citations: View citations in EconPapers (6)

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