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

47 Pages Posted: 4 Aug 2009

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: January 1, 2009

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.

Suggested Citation

Hellerstein, Judith K. and McInerney, Melissa and Neumark, David, Neighbors and Co-Workers: The Importance of Residential Labor Market Networks (January 1, 2009). US Census Bureau Center for Economic Studies Paper No. CES-WP- 09-01. Available at SSRN: https://ssrn.com/abstract=1442865 or http://dx.doi.org/10.2139/ssrn.1442865

Judith K. Hellerstein (Contact Author)

University of Maryland - Department of Economics ( email )

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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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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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