Distributional effects of hiring through networks

Yoske Igarashi
Additional contact information
Yoske Igarashi: Department of Economics, University of Exeter

No 1309, Discussion Papers from University of Exeter, Department of Economics

Abstract: How would a policy that bans the use of networks in hiring (e.g., anti-old boy network laws) affect welfare? To answer this question, we examine a variant of Galenianos (2013), a version of a random search model with two matching technologies: a standard matching function and worker networks. Our model has two types of workers, networked workers and non-networked workers. It is shown that the effects of such a policy on non-networked workers can be either positive or negative, depending on model parameters. In our calibration such a policy would make non-networked workers slightly worse off and networked workers substantially worse off.

Keywords: random search; network; referral; policy analysis; welfare; dynamics. (search for similar items in EconPapers)
JEL-codes: C78 E24 E60 I3 J20 J30 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-dge, nep-gth, nep-lab, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://exetereconomics.github.io/RePEc/dpapers/DP1309.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:exe:wpaper:1309

Access Statistics for this paper

More papers in Discussion Papers from University of Exeter, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sebastian Kripfganz ().