Networks, Race, and Hiring

It is common for scholars interested in race and poverty to invoke a lack of access to job networks as one of the reasons that African Americans and Hispanics face difficulties in the labor market. Much research has found, however, that minorities do worse when they use personal networks in job finding. Research in this area has been hampered by the complicated and multi-step nature of the job-finding process and by the lack of appropriate comparison data for demonstrating the various ways in which minorities can be isolated from good job opportunities. We seek to specify what it means to say that minorities are cut off from job networks. Building on the literature on social networks in the labor market, we delineate the various mechanisms by which minorities can be isolated from good job opportunities. We examine how these mechanisms operate, using unique data on the chain of network contacts that funnel to an employer offering desirable jobs. We find that network factors operate at several stages of the recruitment process. We find scant evidence, however, that these network factors serve to cut off minorities from employment in this setting. We conclude with a discussion of the theoretical and methodological implications of the case for the study of networks, race, and hiring.