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Beyond Networks: 'Social Cohesion' and Unemployment Exit Rates

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Author Info
Carmel Hannan () (The Economics & Social Research Institute, Dublin, Ireland)
Abstract

This paper provides convincing new evidence on the role of social resource patterns in shaping an individual's chances of entry to the labour market. It links movements out of unemployment into employment to constructed indicators of 'social cohesion'. These are social participation, social support and the social network. It was found that the current duration in a state has an influence on the probability of exit from that state. However, even after controlling for this and many other demographic and economic factors, the social network measure remained a significant influence on whether the unemployed found a job. Respondents who have close employed friends are significantly more likely than those who do not to exit unemployment. Why is this the case? Previous research has shown that the more socially integrated individuals have greater access to useful job information flows. In addition, this study has found that the unemployed who have close employed friends are significantly less likely to suffer psychological distress. In this sense, policies which isolate the unemployed into ghettos (for example, council housing schemes) do much harm and may play a large role in keeping the unemployed, unemployed.

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Publisher Info
Paper provided by Institute for Labour Research in its series ILR working papers with number 028.

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Length: 47
Date of creation: Mar 1999
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Handle: RePEc:esl:ilrdps:028

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Postal: Institute for Labour Research University of Essex, Wivenhoe Park Colchester, Essex CO4 3SQ UK
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Web page: http://www.essex.ac.uk/ilr

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Postal: Institute for Labour Research University of Essex, Wivenhoe Park Colchester, Essex CO4 3SQ UK
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Related research
Keywords: social networks; social capital; job search;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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  1. Weber, Andrea & Mahringer, Helmut, 2002. "Choice and Success of Job Search Methods," Economics Series 125, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  2. René Böheim & Mark P Taylor, 2002. "Job search methods, intensity and success in Britain in the 1990s," Economics working papers 2002-06, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
  3. repec:ese:iserwp: is not listed on IDEAS
  4. Greig, Malcolm Stewart & Lindsay, Colin & McQuaid, Ronald W., 2002. "Delivering job search services in rural labour markets: the role of ICT," ERSA conference papers ersa02p235, European Regional Science Association. [Downloadable!]
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