Informal job search through social networks and vacancy creation

Luca Merlino

Economics Letters, 2019, vol. 178, issue C, 82-85

Abstract: In this paper I study the interaction between firms’ decisions to open vacancies and workers’ investment in social networks to find jobs. The transmission of information in the network generates positive search externalities so that in equilibrium vacancy creation and socialization are strategic complements. Despite this, there is a unique interior stable equilibrium.

Keywords: Job search; Endogenous job contact network; Vacancy creation (search for similar items in EconPapers)
JEL-codes: A14 D85 E24 J63 J64 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:178:y:2019:i:c:p:82-85

DOI: 10.1016/j.econlet.2019.03.006

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