People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups

Borghans, Lex, ter Weel, Bas and Weinberg, Bruce A. (2005). People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups. UNU-MERIT Research Memoranda. UNU-MERIT.

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UNU-MERIT Research memoranda

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  • Sub-type Working paper
    Author Borghans, Lex
    ter Weel, Bas
    Weinberg, Bruce A.
    Title People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups
    Series Title UNU-MERIT Research Memoranda
    Volume/Issue No. 2
    Publication Date 2005
    Place of Publication Maastricht, NL
    Publisher UNU-MERIT
    Pages 61
    Language eng
    Abstract Despite indications that interpersonal interactions are important for understanding individual labor-market outcomes and have become more important over the last decades, there is little analysis by economists. This paper shows that interpersonal interactions are important determinants of labor-market outcomes, including occupations and wages. We show that technological and organizational changes have increased the importance of interpersonal interactions in the workplace. We particularly focus on how the increased importance of interpersonal interactions has affected the labor-market outcomes of underrepresented groups. We show that the acceleration in the rate of increase in the importance of interpersonal interactions between the late 1970s and early 1990s can help explain why women's wages increased more rapidly, while the wages of blacks grew more slowly over these years relative to earlier years.
    Keyword Interpersonal interactions
    Wages
    Economics of minorities and races and gender
    Social capital
    JEL J16
    J21
    J24
    J31
    Copyright Holder UNU-MERIT
    Copyright Year 2005
    Copyright type All rights reserved
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    Created: Fri, 13 Dec 2013, 12:39:47 JST