Wage Dynamics and Peer Referrals

Vincent Boucher and Marion Goussé

Cahiers de recherche from Centre de recherche sur les risques, les enjeux économiques, et les politiques publiques

Abstract: We present a flexible model of wage dynamics where information about job openings is transmitted through social networks. The model is based on Calvò-Armengol & Jackson (2004, 2007) and extends their results outside the stationary distribution, and under observed and unobserved heterogeneity. We present an empirical application using the British Household Panel Survey by exploiting direct information about individual's social networks. We find that having more employed friends leads to more job offers but to lower wages due to higher mismatch. We also find that non-relative friends are more helpful than relatives, and that women benefit relatively more from their male friends.

Keywords: Labour Market; Peer Referrals; Social Networks (search for similar items in EconPapers)
JEL-codes: C33 J31 J46 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-lma and nep-ure
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Related works:
Journal Article: Wage Dynamics and Peer Referrals (2019)
Working Paper: Wage dynamics and peer referrals (2019)
Working Paper: Wage Dynamics and Peer Referrals (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:crrecr:1608

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