Race, Gender, and Social Networks in Job Search

• In Event: 182 - Regular Session. Labor Market

Abstract

In what ways do social networks perpetuate racial inequality in the labor market? Three dominant theories aim to answer this question: (1) minorities are less likely to search through networks than their white counterparts (the “network shortage” argument); (2) minorities are just as likely to search through networks, but their contacts are less effective in leading them to quality jobs (the “bad networks” argument); and (3) minorities have access to networks but those networks are less likely to mobilize on their behalf (the “passive networks” argument). While empirical evidence can be found for each of these arguments, data limitation have prevented any broad consensus. Addressing key limitations of existing data sources, we utilize original panel data that follows a national, probability-based sample of workers through their job search. Our results demonstrate that networks exert a strong, positive effect on job offers for both blacks and whites. At the same time, while blacks are better off using networks than not, the positive return from network search is smaller for blacks than for whites. This racial difference in the payoff of network ties can be explained by both differences in network access and differences in network mobilization. Finally, we show that these racial differences in access and mobilization are concentrated among those not employed while searching for work. Together, these findings provide new insights into key mechanisms that reproduce racial inequalities in the labor market.

Authors

• Devah Pager, Harvard University

• David Pedulla, Stanford University