Neighbors and Co-Workers: The Importance of Residential Labor Market Networks

50 Pages Posted: 4 Aug 2008 Last revised: 11 Mar 2010

See all articles by Judith K. Hellerstein

Judith K. Hellerstein

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER)

Melissa McInerney

College of William and Mary

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2008

Abstract

We specify and implement a test for the presence and importance of labor market network based on residential proximity in determining the establishments at which people work. Using matched employer-employee data at the establishment level, we measure the importance of these network effects for groups broken out by race, ethnicity, and various measures of skill. The evidence indicates that these types of labor market networks do exist and play an important role in determining the establishments where workers work, that they are more important for minorities and the less-skilled, especially among Hispanics, and that these networks appear to be race-based.

Suggested Citation

Hellerstein, Judith K. and McInerney, Melissa and Neumark, David, Neighbors and Co-Workers: The Importance of Residential Labor Market Networks (July 2008). NBER Working Paper No. w14201. Available at SSRN: https://ssrn.com/abstract=1179871

Judith K. Hellerstein (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
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Melissa McInerney

College of William and Mary ( email )

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David Neumark

University of California, Irvine - Department of Economics ( email )

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HOME PAGE: http://www.socsci.uci.edu/~dneumark/

National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Germany

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