NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Mark J. Kutzbach

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Working Papers

June 2015Labor Market Networks and Recovery from Mass Layoffs: Evidence from the Great Recession Period
with Judith K. Hellerstein, David Neumark: w21262
We measure the impact of labor market referral networks defined by residential neighborhoods on re-employment following mass layoffs. Because networks can only be effective when hiring is occurring, we focus on a measure of the strength of the labor market network that includes not only the number of employed neighbors of a laid off worker, but also the gross hiring rate at that person's neighbors' workplaces, as network theory suggests that employed neighbors in a network serve to increase the probability that, for any given job opening, an unemployed job searcher will be hired into that vacancy. We find some evidence that local labor market networks are linked to re-employment following mass layoffs, but our strongest evidence shows that networks serve to markedly increase the probabilit...
April 2014Job Displacement and the Duration of Joblessness: The Role of Spatial Mismatch
with Fredrik Andersson, John C. Haltiwanger, Henry O. Pollakowski, Daniel H. Weinberg: w20066
This paper presents a new approach to the measurement of the effects of spatial mismatch that takes advantage of matched employer-employee administrative data integrated with a person-specific job accessibility measure, as well as demographic and neighborhood characteristics. The basic hypothesis is that if spatial mismatch is present, then improved accessibility to appropriate jobs should shorten the duration of unemployment. We focus on lower-income workers with strong labor force attachment searching for employment after being subject to a mass layoff - thereby focusing on a group of job searchers that are plausibly searching for exogenous reasons. We construct person-specific measures of job accessibility based upon an empirical model of transport modal choice and network travel-time d...
February 2013Do Labor Market Networks Have An Important Spatial Dimension?
with Judith K. Hellerstein, David Neumark: w18763
We test for evidence of spatial, residence-based labor market networks. Turnover is lower for workers more connected to their neighbors generally and more connected to neighbors of the same race or ethnic group. Both results are consistent with networks producing better job matches, while the latter could also reflect preferences for working with neighbors of the same race or ethnicity. For earnings, we find a robust positive effect of the overall residence-based network measure, whereas we usually find a negative effect of the same-group measure, suggesting that the overall network measure reflects productivity-enhancing positive network effects, while the same-group measure may capture a non-wage amenity.

Published: Hellerstein, Judith K. & Kutzbach, Mark J. & Neumark, David, 2014. "Do labor market networks have an important spatial dimension?," Journal of Urban Economics, Elsevier, vol. 79(C), pages 39-58. citation courtesy of

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