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Transitions in a West African Labour Market: The Role of Social Networks

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  • Pasquier-Doumer, Laure
  • Nordman, Christophe Jalil

Abstract

This paper sheds light on the role of social networks in the dynamics of a West African labour market, i.e. in the transitions from unemployment to employment, from wage employment to self-employment, and from self-employment to wage employment. It investigates the effects of three dimensions of the social network on these transitions: its structure, the strength of ties and the resources embedded in the network. For this purpose, we use a first-hand survey conducted in Ouagadougou on a representative sample of 2000 households. Using event history data and very detailed information on social networks, we estimate proportional hazard models for discrete-time data. We find that social networks have a significant effect on the dynamics of workers in the labour market and that this effect differs depending on the type of transition and the considered dimension of the social network. The network size appears to not matter much in the labour market dynamics. Strong ties however play a stabilizing role by limiting large transitions. Their negative effect on transitions is reinforced when they are combined with high level of resources embedded in the network.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/12204.

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Date of creation: 29 Nov 2013
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Publication status: Published in DIAL Document de travail, 2013
Handle: RePEc:dau:papers:123456789/12204

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Related research

Keywords: Social Network; Kinship; Labour Market Dynamics; Event History Data; Survival Analysis; Burkina Faso;

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  1. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, Elsevier, vol. 38(9), pages 1297-1314, September.
  2. Jellal, Mohamed & Nordman, Christophe & wolff, François charles, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," MPRA Paper 38590, University Library of Munich, Germany.
  3. Gubert, Flore & Fafchamps, Marcel, 2007. "The Formation of Risk Sharing Networks," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/4392, Paris Dauphine University.
  4. Jean-Philippe Berrou & Fran�ois Combarnous, 2012. "The Personal Networks of Entrepreneurs in an Informal African Urban Economy: Does the ‘Strength of Ties’ Matter?," Review of Social Economy, Taylor & Francis Journals, Taylor & Francis Journals, vol. 70(1), pages 1-30, July.
  5. Bramoullé, Yann & Saint-Paul, Gilles, 2004. "Social Networks and Labor Market Transitions," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 300, Institut d'Économie Industrielle (IDEI), Toulouse.
  6. Parrado, Eric & Caner, Asena & Wolff, Edward N., 2007. "Occupational and industrial mobility in the United States," Labour Economics, Elsevier, Elsevier, vol. 14(3), pages 435-455, June.
  7. Horton, Susan, 1988. "Birth Order and Child Nutritional Status: Evidence from the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 341-54, January.
  8. Antoni Calvó-Armengol & Matthew O. Jackson, 2003. "Networks in Labor Markets: Wage and Employment Dynamics and Inequality," Working Papers 55, Barcelona Graduate School of Economics.
  9. Abigail M. Barr, 2002. "The Functional Diversity and Spillover Effects of Social Capital," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 11(1), pages 90-113, March.
  10. Laure Pasquier-Doumer, 2010. "Inequality of opportunity on the urban labour market in West Africa," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2010/09, DIAL (Développement, Institutions et Mondialisation).
  11. Bentolila, Samuel & Michelacci, Claudio & Suarez, Javier, 2004. "Social Contacts and Occupational Choice," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4308, C.E.P.R. Discussion Papers.
  12. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, American Economic Association, vol. 94(3), pages 426-454, June.
  13. Andy Dickerson & Francis Green, 2004. "The growth and valuation of computing and other generic skills," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 371-406, July.
  14. Hoang, Ha & Antoncic, Bostjan, 2003. "Network-based research in entrepreneurship: A critical review," Journal of Business Venturing, Elsevier, vol. 18(2), pages 165-187, March.
  15. Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, Elsevier, vol. 16(2), pages 194-207, April.
  16. Christophe J. Nordman & François Roubaud, 2009. "Reassessing the Gender Wage Gap in Madagascar: Does Labor Force Attachment Really Matter?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 785-808, 07.
  17. Manishi Prasad & Peter Wahlqvist & Rich Shikiar & Ya-Chen Tina Shih, 2004. "A," PharmacoEconomics, Springer Healthcare | Adis, Springer Healthcare | Adis, vol. 22(4), pages 225-244.
  18. Marcel Fafchamps & Bart Minten, 2000. "Returns to Social Network Capital among Traders," Development Working Papers 145, Centro Studi Luca d\'Agliano, University of Milano.
  19. Grimm, Michael & Gubert, Flore & Koriko, Ousman & Lay, Jann & Nordman, Christophe Jalil, 2013. "Kinship ties and entrepreneurship in Western Africa," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/13755, Paris Dauphine University.
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Cited by:
  1. KUEPIE Mathias & TENIKUE Michel & WALTHER Olivier, 2014. "Small businesses performance in West African border regions: Do social networks pay off?," CEPS/INSTEAD Working Paper Series 2014-06, CEPS/INSTEAD.

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