How do social networks contribute to wage inequality? Insights from an agent-based analysis

Based on a closed agent-based macroeconomic simulation model(Eurace@Unibi) this paper analyzes whether the density of social networks influences via referrals the residual wage inequality in different groups. It is shown that an increase in network density leads to a of firms and a concentration of workers with high specific at firms with high productivities (and wages) thereby enlarging group wage inequality, but not between group wage inequality.