Race and Networks in the Job Search Process

Abstract

Racial disparities persist throughout the employment process, with African Americans experiencing significant barriers compared to whites. This article advances the understanding of racial labor market stratification by bringing new theoretical insights and original data to bear on the ways social networks shape racial disparities in employment opportunities. We develop and articulate two pathways through which networks may perpetuate racial inequality in the labor market: network access and network returns. In the first case, African American job seekers may receive fewer job leads through their social networks than white job seekers, limiting their access to employment opportunities. In the second case, black and white job seekers may utilize their social networks at similar rates, but their networks may differ in effectiveness. Our data, with detailed information about both job applications and job offers, provide the unique ability to adjudicate between these processes. We find evidence that black and white job seekers utilize their networks at similar rates, but network-based methods are less likely to lead to job offers for African Americans. We then theoretically develop and empirically test two mechanisms that may explain these differential returns: network placement and network mobilization. We conclude by discussing the implications of these findings for scholarship on racial stratification and social networks in the job search process.

Donor Financial Capacity Drives Racial Inequality in Medical Crowdsourced Funding

“…Instead, the placement of referrers within firms along with differences in mobilization of social capital are associated with poor returns for Black job seekers. The study does not find direct evidence of discrimination among employers, given equal mobilization and placement of referrers (Pedulla and Pager 2019).…”

“…Following Lin, they define "network access" as access to the information and resources that flow through social networks, and "network returns" as the benefits that arise from the use of networks. Pedulla and Pager (2019) find that access to network resources, in this case information about available jobs, does not explain differential success in job search. Instead, the placement of referrers within firms along with differences in mobilization of social capital are associated with poor returns for Black job seekers.…”

“…In a further study of the cause of racial disparities in hiring, Smith (2005) found that "defensive individualism" in the form of a desire to protect precarious job positions partially explained differences in network mobilization among low SES Black men. Pedulla and Pager (2019) use a longitudinal study of job seekers to examine the mechanisms that allow White job seekers to gain more from their networks than Black job seekers. Following Lin, they define "network access" as access to the information and resources that flow through social networks, and "network returns" as the benefits that arise from the use of networks.…”

Hold the Torch: Shining a Light on the Lives of Black Management Faculty

“…Black applicants are often advised that race may be an advantage on the job market but often find a very different reality awaiting them. Prior studies note common obstacles facing Black faculty when seeking employment, such as having an underresourced social network, being undervalued or disregarded by university employers, and especially important, having to carefully consider the university’s local racial climate (for safety and acceptance purposes) when pursuing and/or accepting a job (O’Meara, Culpepper, & Templeton, 2020; Pedulla & Pager, 2019).…”

“…Some departments rely on a network-based search strategy that limits the dissemination of job announcements, resulting in a narrow applicant pool connected to a preferred set of colleagues. However, the use of network-based job market strategies (driven informally through one’s contacts) can lead to unequal distribution of knowledge of and about the job opening (Pedulla & Pager, 2019). This may negatively impact Black applicants because (a) while Black professionals equally depend on their social networks, they gain less utility out of each tie, and (b) there are significant differences in social resources and in network access because Black professionals often have more disadvantaged social positions (Ibarra, 1995; Lin, 2000; Pedulla & Pager, 2019; Petersen, Saporta, & Seidel, 2000).…”