Measuring the Importance of Labor Market Networks

46 Pages Posted: 13 Oct 2008

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

Date Written: October 2008

Abstract

We specify and implement a test for the importance of network effects in determining the establishments at which people work, using recently-constructed matched employer-employee data at the establishment level. We explicitly measure the importance of network effects for groups broken out by race, ethnicity, and various measures of skill, for networks generated by residential proximity. The evidence indicates that labor market networks play an important role in hiring, more so for minorities and the less-skilled, especially among Hispanics, and that labor market networks appear to be race-based.

Keywords: networks, race, ethnicity, immigrants

JEL Classification: J15, J61

Suggested Citation

Hellerstein, Judith K. and McInerney, Melissa and Neumark, David, Measuring the Importance of Labor Market Networks (October 2008). IZA Discussion Paper No. 3750. Available at SSRN: https://ssrn.com/abstract=1282972 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Judith K. Hellerstein (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3545 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Melissa McInerney

College of William and Mary ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

David Neumark

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

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-824-8496 (Phone)
949-824-2182 (Fax)

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

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
121
Abstract Views
1,189
rank
228,833
PlumX Metrics