Random Social Networks, Unemployment and Wage Inequality.Ioannides, Yannis Menelaos.
Soetevent, Adriaan R.
Empirical studies of labor markets show that social contacts are an important source of job-related information. At the same time, wage differences among workers may be explained only in part by differences in individual background characteristics. Such findings motivate our model in which differences in "social connectedness" among otherwise identical workers result in wage inequality and differe... read more