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 …

network segregation, as measured by inbreeding homophily, on the other hand. Our analysis is based on both U.S. and Estonian …

, then expected homophily in the contact network structure induces different career choices for individuals from different …

a unique value of network homophily maximizing the present value of income. Therefore, there is a gain for risk …