With a little help from my friends? Quality of social networks, job finding and job match quality

Lorenzo Cappellari and Konstantinos Tatsiramos

European Economic Review, 2015, vol. 78, issue C, 55-75

Abstract: This paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality, which is based on the employment of friendship ties. Various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate. Network quality also increases wages for high-skilled workers forming networks with non-familial contacts. Instead, for low-skilled workers, more employed familial contacts lead to a negative but not significant effect on wages. These findings reconcile previous mixed evidence of network effects on wages, indicating heterogeneity by skill level and relationship type.

Keywords: Social contacts; Unemployment; Friendship ties; Wages; Employment stability (search for similar items in EconPapers)
JEL-codes: J21 J31 J63 J64 L14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:78:y:2015:i:c:p:55-75

DOI: 10.1016/j.euroecorev.2015.04.002

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