Do Workers really benefit from their social networks ?

Francois Fontaine

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Abstract: This paper provides a simple matching model in which unemployed workers and employers can be matched together through social networks or through more "formal" methods of search. We show that, in some case, networks substitute for labor market and that this crowding-out effect may be socially costly. For that reason, a policy increasing the social capital of the disadvantaged workers can increase the unemployment rate and decrease workers' output.

Date: 2005
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Published in Recherches Economiques de Louvain - Louvain economic review, 2005, 74 (1), pp.5-31. ⟨10.3917/rel.741.0005⟩

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Related works:
Working Paper: Do workers really benefit from their social networks ? (2008)
Working Paper: Do Workers Really Benefit From Their Social Networks? (2004)
Working Paper: Do workers really benefit from their social networks? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00279251

DOI: 10.3917/rel.741.0005

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