Social networks and labor market inequality between ethnicities and races. (3rd January 2014)

• Record Type: Journal Article
• Authors: TOOMET, OTT; VAN DER LEIJ, MARCO; ROLFE, MEREDITH
• Is Part Of: Network science. Volume 1:Number 3(2014)
• Page Start: 321
• Page End: 352
• Publication Date: 2014-01-03
• Subjects: Social networks -- Research -- Periodicals; System analysis -- Periodicals; System theory -- Periodicals; Computer science -- Periodicals; 003.72
• DOI: 10.1017/nws.2013.20
• Languages: English
• ISSNs: 2050-1242

Abstract

<abstract abstract-type="normal"> <title>Abstract</title> <p>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. Our analysis is based on both the US and Estonian surveys, supplemented with the Estonian telephone communication data. In the case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the US case we consider the regional variation in black--white differentials. Our analysis finds a strong relationship between the size of the wage differential and network segregation: Regions with more segregated social networks exhibit larger unexplained wage gaps.</p> </abstract>