The explanation typically given for longer tenure among workers who use informal contacts to find jobs is that relatives and friends reduce uncertainty about the quality of the match between worker and employer. An alternative explanation is that workers rely on informal information sources as a last resort. Such workers remain at their current jobs mainly because they have few alternative choices rather than because of better match quality. This article shows that the two different explanations are simultaneously valid for different types of contacts and can account for differences in the wage effects of job contacts.

The proposition that there is a large and growing black middle class is a major tenet of much recent work on black economic progress. This paper examines one aspect of middle-class status for black families, namely, the stability of high earnings among young male household heads. It finds that while such men are much less likely to have high earnings than are their white counterparts, there are only small racial differences in the stability of high earnings over time.

The proposition that there is a large and growing black middle class is a major tenet of much recent work on black economic progress. This paper examines one aspect of middle-class status for black families, namely, the stability of high earnings among young male household heads. It finds that, while such men are much less likely to have high earnings than are their white counterparts, there are only small racial differences in the stability of high earnings over time.

In order to determine the importance of parental time inputs in the intergenerational transmission of socioeconomic status, previous work relies on proxies such as family size, birth order, maternal employment, and retrospective reports of child care time. This paper is unique in finding a connection between more direct measures of mother's child-care time and children's outcomes as adults. It shows that (1) higher home productivity increases, but higher opportunity costs reduce, maternal child-care time and (2) greater child-care time of highly-educated, but not of less well-educated, mothers significantly raises children's years of schooling.

In order to determine the importance of parental time inputs in the intergenerational transmission of socioeconomic status, previous work relies on proxies such as family size, birth order, maternal employment, and retrospective reports of child care time. This paper is unique in finding a connection between more direct measures of mother's child-care time and children's outcomes as adults. It shows that (1) higher home productivity increases, but higher opportunity costs reduce, maternal child-care time and (2) greater child-care time of highly-educated, but not of less well-educated, mothers significantly raises children's years of schooling.

All in the Extended Family: Effects of Grandparents, Aunts, and Uncles on Educational Attainment by Linda Datcher Loury. Published in volume 96, issue 2, pages 275-278 of American Economic Review, May 2006

This article shows that college performance and selectivity have significant effects on earnings. It suggests that work that does not include college performance overstates the effect of college selectivity for Whites and understates it for Blacks. While the size of the effect of college selectivity for Blacks is larger than for Whites, the large Black earnings gain is offset for students whose own Scholastic Aptitude Test scores are significantly below the median of the college they attend. This results from the lower probability of graduation for "mismatched" Blacks and the subsequently lower earnings for those who fail to complete college.

This paper explores the theoretical and empirical literature to examine the use by different social groups of informal sources of information provided by friends, relatives, and acquaintances during job search and its consequences for the job market. It also addresses the role of network structure and size, the resource endowments of contacts, and nature of the links between contacts to explain differences in the effects of job information networks. In doing so, the paper also turns to the sociology literature on job information networks and provides an economic perspective on such sociological concepts as strong versus weak ties, inbreeding, distance from structural holes, etc. The paper distinguishes between models of exogenous job information networks, that is where individuals obtain job-related information through a given social structure, and endogenous job information networks, which are social networks that result from individuals' uncoordinated actions. The paper pays special attention to such issues as physical and social proximity and sharing of information and discusses them in the context of the recent social interactions and neighborhood effects literature. Finally, the paper outlines a model that integrates job information networks, where interactions occur in business cycle frequencies, with the dynamics of human capital formation, which include the joint effects of parental, community and neighborhood human capital, and are set in life cycle frequencies, for the purpose of organizing suggestions for future research and examining earned income inequality.