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We explore the links between determinants of social capital and labor market networks at the neighborhood level. We harness rich data taken from multiple sources, including matched employer-employee data with which we measure the strength of labor market networks, data on neighborhood homogeneity that has previously been tied to social capital, and new data – not previously used in the study of social capital – on the number and location of non-profit sector establishments at the neighborhood level. We use a machine learning algorithm to identify the potential determinants of social capital that best predict neighborhood-level variation in labor market networks. We find evidence suggesting that smaller and less centralized schools, and schools with fewer poor students, foster social capital that builds local labor market networks, as does a larger Republican vote share. The presence of establishments in a number of non-profit-oriented industries are identified as predictive of strong labor market networks, likely because they either provide public goods or facilitate social contacts. These industries include, for example, churches and other religious institutions, fire and rescue services including volunteer fire departments, country clubs and golf courses, labor unions, chamber music groups, hobby clubs, and schools.
July 23, 2020
This research was supported by the Russell Sage Foundation. This research uses data from the Census Bureau’s Longitudinal Employer Household Dynamics Program, which was partially supported by National Science Foundation Grants SES-9978093, SES-0339191, and ITR-0427889; National Institute on Aging Grant AG018854; and grants from the Alfred P. Sloan Foundation.
LABOR MARKET ISSUES; ECONOMIC DEVELOPMENT; Local labor markets
Asquith, Brian, Judith K. Hellerstein, Mark J. Kutzbach, and David Neumark. 2020. "Social Capital Determinants and Labor Market Networks." Presented at SI 2020 Urban Economics on July 23, 2020.