People I Know: Job Search and Social Networks
Federico Cingano and
Journal of Labor Economics, 2012, vol. 30, issue 2, 291 - 332
We assess the strength of information spillovers relating unemployment duration of workers displaced by firm closures to their former colleagues' current employment status. Displaced-specific networks are recovered from a 20-year panel of matched employer-employee data. Spillovers are identified by comparing performances of codisplaced workers. A one-standard-deviation increase in the network employment rate reduces unemployment duration by about 8%; the effect is magnified if contacts recently searched for a job and if their current employer is spatially and technologically closer to the displaced worker; stronger ties and lower competition for information favor reemployment. Several indirect tests exclude other interaction mechanisms.
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Working Paper: People I Know: Job Search and Social Networks (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:doi:10.1086/663357
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