Based on a closed agent-based macroeconomic simulation model

(Eurace@Unibi) this paper analyzes whether the density of social networks influences via referrals the residual wage inequality in different

skill groups. It is shown that an increase in network density leads to a

polarization of firms and a concentration of workers with high specific

skills at firms with high productivities (and wages) thereby enlarging

within group wage inequality, but not between group wage inequality.