With a little help from my friends?: quality of social networks, job finding and job match quality

Cappelari, Lorenzo; Tatsiramos, Konstantinos

Abstract

This paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality, which is based on the employment of friendship ties. Various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate. Network quality also increases wages for high-skilled workers forming networks with non-familial contacts. Instead, for low-skilled workers, more employed familial contacts lead to a negative but not significant effect on wages. These findings reconcile previous mixed evidence of network effects on wages, indicating heterogeneity by skill level and relationship type.

Citation

Cappelari, L., & Tatsiramos, K. (2015). With a little help from my friends?: quality of social networks, job finding and job match quality. European Economic Review, 78, https://doi.org/10.1016/j.euroecorev.2015.04.002

• Journal Article Type: Article
• Publication Date: Jan 1, 2015
• Deposit Date: Jul 3, 2015
• Publicly Available Date: Jul 3, 2015
• Journal: European Economic Review
• Print ISSN: 0014-2921
• Electronic ISSN: 0014-2921
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 78
• DOI: https://doi.org/10.1016/j.euroecorev.2015.04.002
• Keywords: Social contacts, Unemployment, Friendship ties, Wages, Employment stability
• Public URL: https://nottingham-repository.worktribe.com/output/987870
• Publisher URL: http://www.sciencedirect.com/science/article/pii/S0014292115000586
• Related Public URLs: http://www.sciencedirect.com/science/article/pii/S0014292115000586