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Dangerous Liaisons: A Social Network Model for the Gender Wage Gap.

Event details of Economics colloquia: Maarten Goos ( University of Leuven)
Date 13 September 2007
Time 12:00 -13:00
Location Roeterseilandcampus - building E

Dangerous Liaisons: A Social Network Model for the Gender Wage Gap: Maarten Goos (University of Leuven)

We combine stylized facts from social network literature with findings from the literature on the gender wage gap in a formal model. This model is based on employers' use of social networks in the hiring process in order to assess employee productivity. As a result, there is a persistent gender wage gap, with women being underpaid relative to men after controlling for productivity characteristics. Networks exhibit inbreeding biases by productivity and by gender, which in combination with women's lower network density cause women tobe hired less often through referral, as well as receive a lower average referral wage

Finally, we use 2001-2006 UK Labour Force Survey data to
test the hypotheses implied by our model. We find that networks do indeed account for a significant part of the gender wage gap for newly hired workers.

For more information please contact Dr. M. Anufriev

Roeterseilandcampus - building E

Roetersstraat 11
1018 WB Amsterdam