Strategic Referring in Labor Market Social Networks
AbstractWe present a model of job search in which information about job opportunities is available either through direct search at the labor market or through network of socially tied individuals. We consider two cases - altruistic and self-interested agents that maximize their utility function. We show that optimal strategies range between full and no referring cases. Altruistic individuals tend to refer more than selfinterested agents. Strategic referring allows agents alleviate employment variation and leads to higher average utility levels and lower unemployment rates.
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Bibliographic InfoPaper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number 2006/29.
Length: 18 pages
Date of creation: Dec 2006
Date of revision: Dec 2006
agent-based modeling; networks; strategy; job referring;
Find related papers by JEL classification:
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-23 (All new papers)
- NEP-CSE-2007-01-23 (Economics of Strategic Management)
- NEP-LAB-2007-01-23 (Labour Economics)
- NEP-NET-2007-01-23 (Network Economics)
- NEP-SOC-2007-01-23 (Social Norms & Social Capital)
- NEP-UPT-2007-01-23 (Utility Models & Prospect Theory)
- NEP-URE-2007-01-23 (Urban & Real Estate Economics)
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