Neighborhood Effects and Job Search Behaviors

Florence Goffette-Nagot () and Marie Aurélie Lapierre ()
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Florence Goffette-Nagot: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique
Marie Aurélie Lapierre: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper aims to test for the influence of interactions with neighbors on job search behaviors of unemployed individuals. Using data from the 2014-2019 French Labor Force Surveys (INSEE), we implement a model of endogenous, contextual and group effects inspired from Manski (1993) and applied to job search intensity for different channels. We control for location endogeneity in a similar way as in Bayer et al. (2008) and tackle the reflection issue by using the approach proposed by Lee (2007) and developed by Boucher et. al. (2014). We find evidence of endogenous peer effects for all the job search channels, which indicates the existence of imitation or spread of information effects, particularly for job search through networks. We also find some contextual and group effects with regards to neighbors' occupations. Such results underline the importance of being surrounded by neighbors with strong labor market connections, and suggest that local social interaction effects in job search could amplify labor market inequalities across neighborhoods.

Keywords: Job search; Neighborhood effects; Unemployment; Reflection issue; Location endogeneity. (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04383040

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