Social Networks, Employment and Worker Discouragement: Evidence from South Africa
Susan Godlonton and
Justine Burns ()
Additional contact information
Justine Burns: School of Economics, University of Cape Town
No 6, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town
Social networks are increasingly being recognised as having an important influence on labour market outcomes, since they facilitate the exchange of job related information. Access to information about job opportunities as well as perceptions about the buoyancy of the labour market depend critically on the social structures and the social networks to which labour market participants belong. In this paper, we examine the impact of information externalities generated through network membership on labour market status. Using Census data from South Africa, a country characterised by high levels of unemployment and worker discouragement, we adopt an econometric approach that aims to minimise the problems of omitted variable bias that have plagued many previous studies of the impact of social networks. Our results suggest that social networks may enhance employment probabilities by an additional 3 to 9%, and that failure to adequately control for omitted variables would lead to substantial over-estimates of the network co-efficient. Social networks affect both employment probabilities and worker discouragement, and are particularly important for individuals residing in rural areas, those with disabilities, and those who are black or female.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://opensaldru.uct.ac.za/bitstream/handle/11090/48/06_06.pdf?sequence=1 Full text (application/pdf)
Journal Article: Social networks, employment and worker discouragement: Evidence from South Africa (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ldr:wpaper:6
Access Statistics for this paper
More papers in SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town Contact information at EDIRC.
Bibliographic data for series maintained by Alison Siljeur ().