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Endogenous job contact networks

Andrea Galeotti () and Luca Merlino

No 2010-14, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: We develop a model where workers, anticipating the possibility of unemployment, invest in connections to access information about available jobs. The investment in connections is high when the job separation rate is moderate, otherwise the investment in connections is low. The response of network investment to labor market conditions generates novel predictions. In particular, the probability that a worker finds a new job via his connections increases in the separation rate, when the separation rate is low, and it decreases otherwise. These predictions are supported by the empirical patterns which we document for the UK labor market.

Date: 2010-05-04
New Economics Papers: this item is included in nep-lab and nep-soc
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Related works:
Journal Article: ENDOGENOUS JOB CONTACT NETWORKS (2014) Downloads
Working Paper: ENDOGENOUS JOB CONTACT NETWORKS (2014)
Working Paper: Endogenous Job Contact Networks (2010)
Working Paper: Endogenous job contact networks (2009)
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