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Social Capital and Wages: An Econometric Evaluation of Social Networking's Effects

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  • Eric Delattre
  • Mareva Sabatier

Abstract

The goal of this paper is to get an econometric evaluation of the effects of the social network's mobilization, as a job search strategy, on wages. We make use of switching regression models to deal simultaneously with an endogenous selection issue in the network's choice and the existence of two different regimes of wage determination. Econometric estimates provide evidence for the existence of a selection effect on the choice of network but, after correcting the selection bias on the wage equations, the effect of social network on wages is negative. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 21 (2007)
Issue (Month): 2 (06)
Pages: 209-236

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Handle: RePEc:bla:labour:v:21:y:2007:i:2:p:209-236

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Cited by:
  1. Walter Trockel, 2013. "Robustness of Intermediate Agreements for the Discrete Raiffa Solution," Working Papers 496, Bielefeld University, Center for Mathematical Economics.
  2. Long, Wenjin & Appleton, Simon & Song, Lina, 2013. "Job Contact Networks and Wages of Rural-Urban Migrants in China," IZA Discussion Papers 7577, Institute for the Study of Labor (IZA).
  3. Zaharieva, Anna, 2013. "Double Matching: Social Contacts in a Labour Market with On-the-Job Search," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79891, Verein für Socialpolitik / German Economic Association.
  4. Mosca, Michele & Pastore, Francesco, 2008. "Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector," IZA Discussion Papers 3422, Institute for the Study of Labor (IZA).
  5. Nicoletta Berardi, 2013. "Social networks and wages in Senegal’s labor market," IZA Journal of Labor & Development, Springer, vol. 2(1), pages 1-26, December.
  6. Anna Zaharieva, 2011. "Social Welfare and Wage Inequality in Search Equilibrium with Personal Contacts," Working Papers 459, Bielefeld University, Center for Mathematical Economics.
  7. Yogo, Urbain Thierry, 2011. "Social Network and Job Quality: Evidence from Cameroon," MPRA Paper 44936, University Library of Munich, Germany.

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