Job Matching, Social Network and Word-of-Mouth Communication
Yves Zenou and
Calvó-Armengol, Antoni
Authors registered in the RePEc Author Service: Antoni Calvó-Armengol
No 2797, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
In our model, workers are embedded within a network of social relationships and can communicate through word-of-mouth. They can find a job either through formal agencies or through informal networks of contacts (word-of-mouth communication). From this micro scenario, we derive an aggregate matching function that has the standard properties but fails to be homogenous of degree one. The latter is due to negative externalities generated by indirect acquaintances (contacts of contacts) that slow down word-of-mouth information transmission, especially in dense networks. We then show that there exists a unique labour market equilibrium and that, because of these negative externalities, the equilibrium unemployment rate increases with the network size in dense networks.
Keywords: Microfoundation of the matching function; Job search; Social network; Personal communication (search for similar items in EconPapers)
JEL-codes: D83 J64 (search for similar items in EconPapers)
Date: 2001-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://cepr.org/publications/DP2797 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Journal Article: Job matching, social network and word-of-mouth communication (2005) 
Working Paper: Job Matching, Social Network and Word-of-Mouth Communication (2003) 
Working Paper: Job Matching, Social Network and Word-of-Mouth Communication (2001) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:2797
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2797
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().