abstract: 'We propose an equilibrium interaction model of occupational segregation

  and labor market inequality between two social groups, generated

  exclusively through the documented tendency to refer informal job

  seekers of identical ``social color{''''}. The expected social color

  homophily in job referrals strategically induces distinct career choices

  for individuals from different social groups, which further translates

  into stable partial occupational segregation equilibria with sustained

  wage and employment inequality - in line with observed patterns of

  racial or gender labor market disparities. Supporting the qualitative

  analysis with a calibration and simulation exercise, we furthermore show

  that both first and second best utilitarian social optima entail

  segregation, any integration policy requiring explicit distributional

  concerns. Our framework highlights that the mere social interaction

  through homophilous contact networks can be a pivotal channel for the

  propagation and persistence of gender and racial labor market gaps,

  complementary to long studied mechanisms such as taste or statistical

  discrimination. (c) 2022 Elsevier B.V. All rights reserved.'
affiliation: 'Buhai, IS (Corresponding Author), Stockholm Univ, SOFI, Stockholm, Sweden.

  Buhai, IS (Corresponding Author), Minho Univ, NIPE, Braga, Portugal.

  Buhai, IS (Corresponding Author), CEPREMAP, Paris, France.

  Buhai, I. Sebastian, Stockholm Univ, SOFI, Stockholm, Sweden.

  Buhai, I. Sebastian, Minho Univ, NIPE, Braga, Portugal.

  Buhai, I. Sebastian, CEPREMAP, Paris, France.

  Congregat Blessed Sacrament, Brussels, Belgium.

  Univ Amsterdam, Amsterdam, Netherlands.'
article-number: '104593'
author: Buhai, I. Sebastian and van der Leij, Marco J.
author-email: 'sbuhai@gmail.com

  mvanderleij@gmail.com'
author_list:
- family: Buhai
  given: I. Sebastian
- family: van der Leij
  given: Marco J.
da: '2023-09-28'
doi: 10.1016/j.jedc.2022.104593
earlyaccessdate: JAN 2023
eissn: 1879-1743
files: []
issn: 0165-1889
journal: JOURNAL OF ECONOMIC DYNAMICS \& CONTROL
keywords: 'Social Networks; Homophily; Job Referrals; Occupational Segregation;

  Labor Market Inequality; Social Welfare'
keywords-plus: 'INFORMATION NETWORKS; SEX-DIFFERENCES; LABOR-MARKETS; OLD BOY; GENDER;

  JOB; EMPLOYMENT; WAGES; GAP; RECRUITMENT'
language: English
month: FEB
number-of-cited-references: '83'
orcid-numbers: Buhai, Ioan-Sebastian/0000-0001-9187-4915
papis_id: ebd3a7458c817a4d4cc877ef6667ebaa
ref: Buhai2023socialnetwork
researcherid-numbers: Buhai, Ioan-Sebastian/D-3583-2016
times-cited: '0'
title: A Social Network Analysis of Occupational Segregation
type: Article
unique-id: WOS:000922129900001
usage-count-last-180-days: '5'
usage-count-since-2013: '6'
volume: '147'
web-of-science-categories: Economics
year: '2023'