Degrees of Separation: An Alternate Cause of Discrimination

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Abstract/Contents

Abstract: This paper builds a social network employment model that divides the labor force into two groups of different relative size: a majority and minority group is introduced. Average workers from each group are otherwise completely identical, possessing an equal level of ability. However, due to social network effects, minority workers not only receive a disproportionately low fraction of job offers through referral, but also expect lower average wages. Thus, the model suggests that simply the introduction of a majority and minority group in the labor force (when workers are more likely to know others who share similar attributes) breeds inequality. Discrimination (measurable differences in expected welfare between groups, given equal ability) can persist independently of psychological prejudices like racism or sexism—discrimination may be an inherent consequence of the interaction of more- and less- “advantageous” social networks.

Type of resource	text
Date created	May 2007

Author	Okafor, Chika
Primary advisor	Arrow, Kenneth
Degree granting institution	Stanford University, Department of Economics

Subject	Stanford Department of Economics
Subject	labor force
Subject	discrimination
Subject	inequality
Subject	social network
Genre	Thesis

Location	https://purl.stanford.edu/fh520js1265

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Preferred Citation: Okafor, Chika. (2007). Degrees of Separation: An Alternate Cause of Discrimination. Stanford Digital Repository. Available at: https://purl.stanford.edu/fh520js1265

Stanford University, Department of Economics, Honors Theses

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