We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … homophily levels. As a possible application we provide a stylized labor market model, where a firm can hire a worker via the …

We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … characteristics. A homophily parameter directly determines the strength of this effect. As a main result, we show that for any …

We examine friendships and study partnerships among university students over several years. At the aggregate level …, connections increase over time, but homophily on gender and ethnicity is relatively constant across time, university residences … layers. Furthermore, we see assortativity in homophilous tendencies. There is weaker, albeit significant, homophily over …