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Objectives. Few studies apply the concept of social capital to labor force participation. In this research, I study the relationship between friendship networks and labor force participation as represented by employment and hours worked. Methods. I test five hypotheses representing social capital with network structure, network quality, and network diversity using nationally representative data from the 2000 Social Capital Benchmark Survey. Since this survey enables comparisons across racial/ethnic and gender groups, I am also able to specify how social capital interacts with race/ethnicity and gender to influence labor force participation, while controlling for other prominent theoretical concerns such as human capital theory. Results. I find that friendship networks are generally positively related with increased labor force participation. Further, I find significant social capital differences based on race/ethnicity and gender. Conclusions. I illustrate that social capital can be applied across a broader racial/ethnic/gender spectrum. The findings suggest that programs that attempt to bring valuable labor market information to individuals and communities lacking employment–related information are likely to be effective in reducing inequality, especially if combined with programs for developing human capital.

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There is a paucity of studies examining the relationship between Puerto Ricans’ social capital and their earnings. I utilized data from the Latin American Migration Project (collected in 1998 and 1999) to test five hypotheses derived from social capital theory to predict the hourly earnings of Puerto Rican migrants. My study illustrates that Puerto Rican migrants’ social capital is positively related with their earnings. Interestingly, the social capital effects only pertain to Puerto Rican females. Additionally, Puerto Rican migrants do not benefit from ethnic solidarity in terms of increased wages. My analyses point toward social capital's ability to provide important labor market information to Puerto Rican females, which they appear to use to acquire jobs paying higher wages. Social capital theory has been applied to many different phenomenon including banking, education, immigration, labor markets, and nation building (Massey et al. 1987; Coleman 1988; Uzzi 1999; Fernandez, Castilla, and Moore 2000; Putnam 2000). Within the labor market, social capital has been found to be related with earnings, employment, formal employment, and job tenure (Mier and Giloth 1986; Donato, Durand, and Massey 1992; Aguilera 1999; 2003; Philips and Massey 1999; Aguilera and Massey 2003). Within the immigration field, social capital has been linked with the migration process, labor market outcomes, and attainment of citizenship (Massey et al. 1987; Baker 2000; Aguilera and Massey 2003; Fussell 2004). Unfortunately, Puerto Ricans have been unstudied within this massive literature about social capital. Additionally, gender differences in returns to social capital are only just beginning to be recognized and there is little agreement as to whether males or females benefit most from social capital. I studied the relationship between social capital and labor market outcomes of Puerto Rican migrants, paying special attention to differences in gender.

Using the 1992 Legalized Population Survey, I focus on employment matching processes of formerly undocumented Mexican immigrant workers in the United States. As in earlier studies, I show that employment characteristics are related to the job tenures of immigrant workers. However, my contribution is that I specifically analyze how formerly undocumented Mexican immigrant workers’ attributes and social networks influence their job tenures. In general, increases in human capital are associated with shorter job tenure, apparently in an effort to improve employment conditions, while the use of social capital is positively related with job tenure. It appears that acquiring employment is a social process, and those using personal networks find longer lasting jobs. Although prior studies have minimized the role of supply‐side characteristics such as employees’ skill level and social networks in influencing job tenure, my research confirms the significance of workers and the resources they bring to the labor market.