Social Capital and Labor Market Networks

59 Pages Posted: 23 Oct 2017 Last revised: 1 Aug 2019

See all articles by Brian Asquith

Brian Asquith

Upjohn Institute

Judith K. Hellerstein

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

Mark J. Kutzbach

Federal Deposit Insurance Corporation

David Neumark

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

Date Written: October 2017

Abstract

We explore the links between social capital and labor market networks at the neighborhood level. We harness rich data taken from multiple sources, including matched employer-employee data with which we measure the strength of labor market networks, data on behavior such as voting patterns that have previously been tied to social capital, and new data – not previously used in the study of social capital – on the number and location of non-profit sector establishments at the neighborhood level. We use a machine learning algorithm to identify important potential social capital measures that best predict neighborhood-level variation in labor market networks. We find evidence suggesting that smaller and less centralized schools, and schools with fewer poor students, foster social capital that builds labor market networks, as does a larger Republican vote share. The presence of establishments in a number of non-profit oriented industries are identified as predictive of strong labor market networks, likely because they either provide public goods or facilitate social contacts. These industries include, for example, churches and other religious institutions, police departments, fire and rescue services including volunteer fire departments, country clubs, mayors’ offices, chamber music groups, hobby clubs, and museums.

Suggested Citation

Asquith, Brian and Hellerstein, Judith K. and Kutzbach, Mark J. and Neumark, David, Social Capital and Labor Market Networks (October 2017). NBER Working Paper No. w23959. Available at SSRN: https://ssrn.com/abstract=3057190

Brian Asquith (Contact Author)

Upjohn Institute ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States

HOME PAGE: http://www.brianjamesasquith.com

Judith K. Hellerstein

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

Mark J. Kutzbach

Federal Deposit Insurance Corporation ( email )

550 17th Street NW
Washington, DC 20006

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

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