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Network Matching Efficiency along the Economic Cycle: Direct and Indirect Ties

Arnaud Herault, Eva Moreno-Galbis and François-Charles Wolff ()
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Arnaud Herault: Granem - Groupe de Recherche ANgevin en Economie et Management - UA - Université d'Angers - Institut National de l'Horticulture et du Paysage - AGROCAMPUS OUEST
Eva Moreno-Galbis: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

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Abstract: There is a large consensus in the literature on the major role of social networks as a helpful instrument to find a job. In this paper, we study the social network matching rate along the economic cycle both from a theoretical and empirical perspective. Using the French Labor Force Survey for the period 2003-2012, we find that the relationship between the network matching rate based on direct ties and the job finding rate is decreasing and convex as predicted by our theoretical setup. Results are completely modified when we consider a measure of the network matching rate based on indirect ties related to the share of peers in a job. In this case, we find a linearly increasing relation between the network matching rate and the job finding rate. This underlines not only the heterogeneous ways through which network membership may influence the individuals' performance on the labor market, but also the different behaviors of these driving factors along the economic cycle.

Keywords: immigrants; employment; network matching rate; direct and indirect ties; job finding rate (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ure
Date: 2018-11
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01935582
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Working Paper: Network Matching Efficiency along the Economic Cycle: Direct and Indirect Ties (2018) Downloads
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