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

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Author Info
Borghans,Lex
Weel,Bas,ter
Weinberg,Bruce A. (MERIT)

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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.

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Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 002.

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Date of creation: 2005
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Handle: RePEc:dgr:umamer:2005002

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Keywords: labour economics

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Francine Blau & Lawrence M. Kahn, 2006. "The US Gender Pay Gap in the 1990s: Slowing Convergence," Working Papers 887, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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