Transitions Out Of Unemployment: The Role Of Social Networks' Topology And Firms' Recruitment Strategies
AbstractIn this paper we adopt the probabilistic framework of CalvÂ´o-Armengol and Jackson (2004) to study the effects of job contact networks on outof- unemployment transitions. In particular we evaluate the role of di erent network topologies vis-a-vis state-dependent probabilities of receiving information on vacancies, which we relate to different firmsârecruitment strategies. We find that social connections produce sizable increases in upward mobility from unemployment and, in general,symmetric network topologies perform better than asymmetric ones. In addition, and most interestingly, these results strongly depends on the di erent hypotheses on the firmsâ hiring process strategy. Furthermore, in scale-free networks the probability of transitions out of unemployment increases in the exponent of the power-law degree distribution, but its value is much lower than what obtainable in Poisson random networks.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Metroeconomica.
Volume (Year): 62 (2011)
Issue (Month): 1 (02)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386
Other versions of this item:
- Andrea Mario Lavezzi - Nicola Meccheri, 2009. "Transitions Out of Unemployment: the Role of Social Networks' Topology and Firms' recruitment Strategies," Discussion Papers 2009/80, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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