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People I Know: Job Search and Social Networks

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  • Federico Cingano
  • Alfonso Rosolia

Abstract

We assess the strength of information spillovers relating unemployment duration of workers displaced by firm closures to their former colleagues’ current employment status. Displaced-specific networks are recovered from a 20-year panel of matched employer-employee data. Spillovers are identified by comparing performances of codisplaced workers. A one-standard-deviation increase in the network employment rate reduces unemployment duration by about 8%; the effect is magnified if contacts recently searched for a job and if their current employer is spatially and technologically closer to the displaced worker; stronger ties and lower competition for information favor reemployment. Several indirect tests exclude other interaction mechanisms.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 30 (2012)
Issue (Month): 2 ()
Pages: 291 - 332

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Handle: RePEc:ucp:jlabec:doi:10.1086/663357

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Web page: http://www.journals.uchicago.edu/JOLE/

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References

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Citations

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Cited by:
  1. Effrosyni Adamopoulou, 2012. "Peer Effects in Young Adults' Marital Decisions," Economics Working Papers we1228, Universidad Carlos III, Departamento de Economía.
  2. Judith K. Hellerstein & Melissa P. McInerney & David Neumark, 2010. "Neighbors And Co-Workers:The Importance Of Residential Labor Market Networks," Working Papers 101, Department of Economics, College of William and Mary.
  3. Kramarz, Francis & Nordström Skans, Oskar, 2011. "When strong ties are strong Networks and youth labor market entry," Working Paper Series, Center for Labor Studies 2011:18, Uppsala University, Department of Economics.
  4. Hellerstein, Judith K. & Kutzbach, Mark J. & Neumark, David, 2014. "Do labor market networks have an important spatial dimension?," Journal of Urban Economics, Elsevier, vol. 79(C), pages 39-58.
  5. Damm, Anna Piil, 2014. "Neighborhood quality and labor market outcomes: Evidence from quasi-random neighborhood assignment of immigrants," Journal of Urban Economics, Elsevier, vol. 79(C), pages 139-166.
  6. Simon Gemkow & Michael Neugart, 2011. "Referral hiring, endogenous social networks, and inequality: an agent-based analysis," Journal of Evolutionary Economics, Springer, vol. 21(4), pages 703-719, October.
  7. Battistin, Erich & Graziano, Clara & Parigi, Bruno M., 2012. "Connections and performance in bankers’ turnover," European Economic Review, Elsevier, vol. 56(3), pages 470-487.
  8. Judith K. Hellerstein & David Neumark, 2011. "Employment in Black Urban Labor Markets: Problems and Solutions," NBER Working Papers 16986, National Bureau of Economic Research, Inc.

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