A Social Network Analysis of Occupational Segregation

We develop a social network model of occupational segregation between <p> different social groups, generated by the existence of positive inbreeding <p> bias among individuals from the same group. If network referrals <p> are important in getting a job, then expected inbreeding bias in the <p> contact network structure induces different career choices for individuals <p> from different social groups. This further translates into stable occupational <p> segregation equilibria in the labour market. We derive the conditions <p> for persistent wage and unemployment inequality in the segregation <p> equilibria. Our framework is proposed as complementary to existing theories <p> used to explain labour market inequalities between groups divided <p> by race, ethnicity or gender