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The Role of Neighborhood Connections after Mass Layoffs

Networking is often cited as an important part of the job-hunting process, especially after mass layoffs. Researchers David Neumark (UCI and a visiting scholar at the San Francisco Fed), Judith K. Hellerstein (University of Maryland), and Mark J. Kutzbach (FDIC) analyzed the potential network connections among workers who live in the same neighborhood or census tract.  They found evidence that stronger labor market network connections between neighbors increase the probability of rapid reemployment for workers who experience mass layoffs, especially among lower-skilled workers, whose job markets and networks are more local.

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