Personal Networks and Nonagricultural Employment: The Case of a Farming Village in the Philippines
Economic Development and Cultural Change, 2007, vol. 55, issue 4, 669-707
This article, based on an intensive village survey in the Philippines, analyzes the effects of personal networks on rural villagers’ access to nonagricultural occupations and the terms of employment given to them. A key finding is that personal networks are selectively used to reduce transaction costs and their impacts on employment conditions vary by size and by location of enterprises. We find that when villagers are employed in unskilled work at small enterprises, those who use family/relative networks receive wage premiums. However, if we limit our sample to small enterprises located near our study village, the family/relative network premiums become insignificant, presumably because of the overriding influence of the community-wide network within a narrow local community. Contrary to the case of small enterprises, unskilled workers’ wages at large enterprises are not much affected by personal networks but are largely determined by years of schooling and work experience. The recent development of large-scale enterprises in the Philippines shows the diminishing importance of personal networks for unskilled labor markets, reflecting the tendency that acquired ability through education and training is becoming more important than nascent characteristics such as family/relative networks, corresponding to economic and social modernization.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed
Downloads: (external link)
Access to the online full text or PDF requires a subscription.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:ecdecc:v:55:y:2007:p:669-707
Access Statistics for this article
More articles in Economic Development and Cultural Change from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().