Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2012-11-13 Number: 12-120/II Author-Name: Ott Toomet Author-Workplace-Name: Tartu University Author-Name: Marco van der Leij Author-Workplace-Name: University of Amsterdam Author-Name: Meredith Rolfe Author-Workplace-Name: London School of Economics Title: Social Networks and Labor Market Inequality between Ethnicities and Races Abstract: This discussion paper resulted in a publication in the 'Network Science', 2014, 96(5), 936-948.
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 hand. Our analysis is based on both U.S. and Estonian surveys, supplemented with Estonian telephone communication data. In case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the U.S. case we consider the regional variation in black-white differentials. Our analysis finds a strong relationship between the size of the differential and network segregation: regions with more segregated social networks exhibit larger unexplained wage gaps. Classification-JEL: J71, J31, Z13 Keywords: social networks, wage differential, homophily, segregation, race, minorities File-Url: http://papers.tinbergen.nl/12120.pdf File-Format: application/pdf File-Size: 298916 bytes Handle: RePEc:tin:wpaper:20120120