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Title: On the Relationship Between Unexplained Wage Gap and Social Network Connections for Ethnical Groups

Citation Type: Miscellaneous

Publication Year: 2009

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Abstract: This paper analyses the relationship between unexplained racial/ethnicwage differential and integration of social networks. Our analysis is basedon both US and Estonian surveys, supplemented with Estonian telephonecommunication data. We compare network segregation and unexplainedwage differentials by distinct geographic regions.Our analysis finds a clear negative relationship between the size of thedifferential and network integration: regions with more integrated socialnetworks exhibit smaller unexplained wage differential. The relationshipis insiginificant for the US communities but highly significant for Estoniancounties where we possess detailed communication data. It is robustwith respect to controlling for the minority percentage. The network integrationexplains around 5% (for the US) and 50% (for Estonia) of theregional variation of the differential.

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Authors: van der Leij, Marco; Toomet, Ott; Rolfe, Meredith

Publisher: University of Alicante

Data Collections: IPUMS USA

Topics: Other, Race and Ethnicity

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