Do Labor Market Networks Have An Important Spatial Dimension?
September 2012
Working Paper Number:
CES-12-30
Abstract
We test for evidence of spatial, residence-based labor market networks. Turnover is lower for workers more connected to their neighbors generally and more connected to neighbors of the same race or ethnic group. Both results are consistent with networks producing better job matches, while the latter could also reflect preferences for working with neighbors of the same race or ethnicity. For earnings, we find a robust positive effect of the overall residence-based network measure, whereas we usually find a negative effect of the same-group measure, suggesting that the overall network measure reflects productivity enhancing positive network effects, while the same-group measure captures a non-wage amenity.
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:
work census,
employ,
employed,
minority,
labor,
ethnicity,
ethnic,
immigrant,
metropolitan,
economic census,
workplace,
discrimination,
workforce,
segregation,
worker,
neighborhood,
resident,
network,
census employment,
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Decennial Census,
Employer Identification Numbers,
Economic Census,
Sample Edited Detail File,
Longitudinal Employer Household Dynamics,
Business Register,
Employment History File,
Employer Characteristics File,
Individual Characteristics File,
Quarterly Census of Employment and Wages
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