Do neighbors help finding a job? Social networks and labor market outcomes after plant closures

Elke Jahn and Michael Neugart

Labour Economics, 2020, vol. 65, issue C

Abstract: This paper investigates whether the employment status of neighbors influences the employment probability of workers who lost their job due to a plant closure, and the channels through which this occurs. Combining rich spatial information with administrative records, we find that a 10 percentage points higher neighborhood employment rate increases the probability of finding a job by 1.9%. Displaced workers not only benefit from neighborhood networks in terms of higher earnings and longer job stability but they are also more likely to find a job at the plant of a neighbor. These results indicate that neighbors refer workers to employers and that social norms are less likely to play a role.

Keywords: Social networks; Job search; Neighborhood; Employment; Earnings; Plant closures (search for similar items in EconPapers)
JEL-codes: J63 J64 R23 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Do neighbors help finding a job? Social networks and labor market outcomes after plant closures (2020)
Working Paper: Do Neighbors Help Finding a Job? Social Networks and Labor Market Outcomes After Plant Closures (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300300

DOI: 10.1016/j.labeco.2020.101825

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