Social Networks and the Employment Problem of the Urban Poor

Abstract

This paper investigates the link between social networks and the ability to find a job through a personal contact among adult inner-city residents. Using data collected by the National Opinion Research Center that interviewed 2490 adult inner-city residents, the impact of network structure and composition on finding a job through word-of-mouth is estimated. Ethnic differences in the rate of finding jobs through word-of-mouth were found, as well as interesting ethnic and racial differences in the way social networks operate to connect job-seekers and job vacancies. Overall, the findings suggest that social networks account for some of the employment problems that many inner-city residents face.