Your very private job agency: job referrals based on residential location networks

Franziska Hawranek and Norbert Schanne ()
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Franziska Hawranek: Universität Regensburg

No 201401, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper analyzes job referral effects that are based on residential location. We use georeferenced record data for the entire working population (liable to social security) and the corresponding establishments in the Rhine-Ruhr metropolitan area, which is Germany's largest (and EU's second largest) metropolitan area. We estimate the propensity of two persons to work at the same place when residing in the same neighborhood (reported with an accuracy of 500mÎ500m grid cells), and compare the effect to people living in adjacent neighborhoods. We find a significant increase in the probability of working together when living in the same neighborhood, which is stable across various specifications. We differentiate these referral effects for socioeconomic groups and find especially strong effects for migrant groups from former guestworker countries and new EU countries. Further, we are able to investigate a number of issues in order to deepen the insight on actual job referrals: distinguishing between the effects on working in the same neighborhood and working in the same establishment - probably the more accurate measure for job referrals - shows that the latter yield overall smaller effects. Further, we find that clusters in employment although having a significant positive effect play only a minor role for the magnitude of the referral effect. When we exclude short distance commuters, we find the same probabilities of working together, which reinforces our interpretation of this probability as a network effect." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Nordrhein-Westfalen; Rhein-Region; Ruhrgebiet; ausländische Arbeitnehmer; Auswirkungen; Beschäftigungseffekte; Einwanderer; informelle Kommunikation; Inländer; Integrierte Erwerbsbiografien; peer group; soziale Umwelt; soziales Netzwerk; Arbeitsort; Wohnort; Arbeitsplatzwahl; Arbeitsvermittlung; 2006-2008 (search for similar items in EconPapers)
JEL-codes: J20 R23 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014
New Economics Papers: this item is included in nep-eur, nep-geo, nep-lab, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Your very private job agency: Job referrals based on residential location networks (2015)
Working Paper: Your very private job agency: Job referrals based on residential location networks (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201401

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