Social Networks and Labor Market Transitions
نویسندگان
چکیده
We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker. *Bramoullé: LEERNA, Université des Sciences Sociales, Toulouse. Saint-Paul: IDEI, GREMAQ, LEERNA, Université des Sciences Sociales, Toulouse; CEPR and IZA. We are grateful to participants at the CEPR/DAEUP final workshop, April 2004 and at the T2M conference, Orleans, January 2004, for helpful comments and suggestions
منابع مشابه
Creating Connections For the Disadvantaged : Networks and Labor Market Intermediaries at the Hiring Interface ©
All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission, provided that full credit including © notice is given to the source. Abstract Scholars interested in race inequality have been particularly attracted to network accounts of the stratifying effects of social networks in the labor market. A recurring theme in policy‐oriented resea...
متن کاملThe Recruitment Paradox: Network Recruitment, Structural Position, and East German Market Transition
Economic institutions structure links between labor-market informality and social stratification. The present study explores how periods of institutional change and post-socialist market transition alter network-based job finding, in particular informal recruitment. We highlight how market transitions affect both the prevalence and distribution of network-based recruitment channels: open-market...
متن کاملSocial Networks and the Dynamics of Labor Market Outcomes: Evidence from Refugees
This paper examines the dynamic implications of social networks for the labor market outcomes of political refugees resettled in the U.S. Using a theoretical model of job information transmission within social networks, the paper shows that the relationship between the size of a social network, the vintage of network members and labor market outcomes is non-monotonic. To test this prediction, I...
متن کاملUnequal Chances on the Transitional Labor Market: The Case of the Netherlands
Unequal Chances on the Transitional Labor Market: The Case of the Netherlands The emergence of a transitional labor market offers new opportunities to workers, but at the same time bears the risk of (new) inequalities. This paper deals with unequal chances on the transitional labor market in the Netherlands, in particular for workers from the four largest immigrant groups: Turks, Moroccans, Sur...
متن کامل