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Social Networks and Labor Market Outcomes: Do personal connections always lead to better jobs?

Tamás Bartus

No 2, Rajk László Szakkollégium Working Papers from Rajk László College

Abstract: This paper adresses the question under which conditions do social networks affect labor market outcomes. Because of imperfect information, personal connections are effective in amtching persons and jobs, thus, besides education, social networks are expected to affect status and income inequalities. Hypotheses which elaborate on the relationship between network characteristics and labor market outcomes, however, do not hold generally. To improve these hypotheses, sociological insights on social networks are linked to search and matching models which explain the retuns to the informal search methods.

Keywords: labor market; social networks (search for similar items in EconPapers)
JEL-codes: J49 J79 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1998-03
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