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Journal of Labor Research - vol. 36 n° 1 -

"Networks are thought to have an important impact on individuals' access to labor markets. Yet, it is a challenging task to identify network effects because the functioning of networks relies heavily on unobservables that may be correlated with other productivity-related characteristics. In this study, we quantify the importance of networks as a determinant of workers' labor market outcomes. Using variation in the distance to the nearest Mexican rail lines in the past as a source of identification, we find that the size of the network is positively related to current wages and to the probability of being a documented immigrant."
"Networks are thought to have an important impact on individuals' access to labor markets. Yet, it is a challenging task to identify network effects because the functioning of networks relies heavily on unobservables that may be correlated with other productivity-related characteristics. In this study, we quantify the importance of networks as a determinant of workers' labor market outcomes. Using variation in the distance to the nearest Mexican ...

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