The roles of organizational demography and social capital in differential labor market outcomes realized by workers who are demographically different

This research combines organizational demography and social capital to explain conditions that may cause demographically different workers to generate performance and household incomes that are different from those of whites, when all workers are equally qualified. The demography study uses simulation to model interactions within one network, showing how structures influence knowledge attained. The social capital study uses a national survey, showing effects of education, diverse contact networks, and trust on household incomes.;Pfeffer's (1983) organizational demography paradigm provides theoretical foundation for the simulation. Pfeffer defines demography as a compositional property of social entities explaining a variety of outcomes, including performance, relationships, transaction patterns, and cohort identity. This study explores a demographic dimension not previously tested---race composition. Simulation allows specification of group size and members' entry times. Race composition, group size, and entry time are usually accepted as given by investigators conducting field research.;Simulation results show size is important. When new entrants are present, large groups attain greater knowledge than small groups. This result is influenced by the number of exchange partners available. Over time, the number of ties to other group members affects attained knowledge more than status as a new entrant or demographically different group member.;Lin (2001) defines social capital as investment in social relations with expected returns in the marketplace. He suggests social capital can be leveraged to benefit individuals or collective groups. Differential outcomes result from capital deficits, return deficits, or both. Social capital is embedded in social networks, and accessible through direct or indirect ties to others. This study uses the national sample from Putnam's civic engagement study.;Survey findings show that blacks and Hispanics experience both capital and return deficits. Before considering human capital or social capital, whites have higher household incomes than blacks or Hispanics. Maintaining ties to elite others is beneficial for all three racial groups, while maintaining ties to non-elite others is detrimental to whites only. Only whites experience negative effects of trusting coworkers, but this disadvantage does not eliminate differential household incomes between the groups. Maintaining diverse ethnic ties is beneficial for whites, but not to others.