Download the Paper (PDF format) - May 15, 2008 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

ABSTRACT:

We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important for job search, then expected homophily in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labor market. We derive the conditions for wage and unemployment inequality in the segregation equilibria and characterize first and second best social welfare optima. Surprisingly, we find that socially optimal policies involve segregation.

SUGGESTED CITATION:
Marco J. van der Leij and I. Sebastian Buhai, "A Social Network Analysis of Occupational Segregation" (May 15, 2008). Fondazione Eni Enrico Mattei Working Papers. Working Paper 192.
http://www.bepress.com/feem/paper192