SOCIAL ISOLATION AND LABOR MARKET INSULATION:

This study examines the influence of neighborhood poverty and social networks on labor market experiences of less-educated urban job seekers. Data come from the Multi-City Survey of Urban Inequality and the 1990 decennial census. Results indicate that relatively small differences in job search strategies among residents of high- and low-poverty neighborhoods are magnified in the hiring process and that supply- and demand-side factors have qualitatively different effects on earnings within these residential contexts. These results refine our understanding of social isolation by clarifying the points at which "neighborhood effects" manifest themselves in the job-matching process and suggest that social isolation is often accompanied by labor market insulation characterized by an increasing reliance upon neighbors and personal contacts for securing formal employment.