Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87561
Authors: 
Toomet, Ott
van der Leij, Marco
Rolfe, Meredith
Year of Publication: 
2012
Series/Report no.: 
Tinbergen Institute Discussion Paper 12-120/II
Abstract: 
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.
Subjects: 
social networks
wage differential
homophily
segregation
race
minorities
JEL: 
J71
J31
Z13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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