Social Networks and Labor Market Inequality between Ethnicities and Races

Ott Toomet, Marco van der Leij and Meredith Rolfe
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Ott Toomet: Tartu University
Meredith Rolfe: London School of Economics

No 12-120/II, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the 'Network Science' , 2014, 96(5), 936-948.

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 hand. Our analysis is based on both U.S. and Estonian surveys, supplemented with Estonian telephone communication data. In case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the U.S. case we consider the regional variation in black-white differentials. Our analysis finds a strong relationship between the size of the differential and network segregation: regions with more segregated social networks exhibit larger unexplained wage gaps.

Keywords: social networks; wage differential; homophily; segregation; race; minorities (search for similar items in EconPapers)
JEL-codes: J31 J71 Z13 (search for similar items in EconPapers)
Date: 2012-11-13
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Related works:
Journal Article: Social networks and labor market inequality between ethnicities and races (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20120120

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