Social networks and labor market transitions
AbstractWe study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generally generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 17 (2010)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/labeco
Social networks Duration dependence Labor market transitions Homophily;
Other versions of this item:
- Bramoullé, Yann & Saint-Paul, Gilles, 2004. "Social Networks and Labour Market Transitions," CEPR Discussion Papers 4523, C.E.P.R. Discussion Papers.
- Bramoullé, Yann & Saint-Paul, Gilles, 2004. "Social Networks and Labor Market Transitions," IZA Discussion Papers 1215, Institute for the Study of Labor (IZA).
- Bramoullé, Yann & Saint-Paul, Gilles, 2004. "Social Networks and Labor Market Transitions," IDEI Working Papers 300, Institut d'Économie Industrielle (IDEI), Toulouse.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
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