Virtual social currencies for unemployed people: social networks and job market access
AbstractAlternative currencies continue to develop all around the world, taking various forms (material or immaterial) and ful ll various functions. They are created in order to promote the local economy development and to ght against social exclusion. They are principally aimed to low income people (retired or unemployed people, or people who are living with a low wage). In this paper, we analyze the particular case of virtual currency circulation inside a local community of unemployed people. We elaborate on the assumptions that the organization of LETS and the circulation of complementary currencies have two properties: (i) they help unemployed workers to overcome the double coincidence of want necessity of an informal sector founded on barter exchange; (ii) they help to maintain and develop workers' skills outside job, helping them to observe opportunities of employment even as long-term unemployed workers. We study the global properties of a job market associating traditional short-term and long-term unemployment to the organization of LETS. Using a theoretical Pissarides-style model, we nd that the initial level of trust of agents in the complementary currency(cies) but also the e ective properties of his(these) currency(cies) are crucial for LETS to become permanent institutions. We also nd that if the stationary equilibrium of the job-market includes LETS, then LETS have a positive in uence on the rate of employment, on the expected utility of employed workers, and are Pareto improving when the benchmark case is a job market without any LETS.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Working Papers with number halshs-00856480.
Date of creation: 2013
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00856480
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Social currencies; complementary currencies; unemployment; informal sector.;
Other versions of this item:
- Maëlle Della Peruta & Dominique Torre, 2014. "Virtual Social Currencies for Unemployed People: Social Networks and Job Market Access," GREDEG Working Papers, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis 2014-16, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-13 (All new papers)
- NEP-IUE-2013-09-13 (Informal & Underground Economics)
- NEP-SOC-2013-09-13 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jér�me Blanc, 2009.
"Contraintes Et Choix Organisationnels Dans Les Dispositifs De Monnaies Sociales,"
Annals of Public and Cooperative Economics, Wiley Blackwell,
Wiley Blackwell, vol. 80(4), pages 547-577, December.
- Jérôme Blanc, 2009. "Contraintes et choix organisationnels dans les dispositifs de monnaies sociales," Post-Print, HAL halshs-00709199, HAL.
- Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(4), pages 1371-91, November.
- Per-Anders Edin & Magnus Gustavsson, 2008.
"Time out of Work and Skill Depreciation,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
- Edin, Per-Anders & Gustavsson, Magnus, 2004. "Time Out of Work and Skill Depreciation," Working Paper Series, Uppsala University, Department of Economics 2004:14, Uppsala University, Department of Economics.
- Edin, Per-Anders & Gustavsson, Magnus, 2005. "Time out of work and skill depreciation," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2005:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Gomez, Georgina M. & Helmsing, A.H.J., 2008. "Selective Spatial Closure and Local Economic Development: What Do We Learn from the Argentine Local Currency Systems?," World Development, Elsevier, Elsevier, vol. 36(11), pages 2489-2511, November.
- M.S. Peacock, 2000. "Local Exchange Trading Systems: A Solution to the Employment Dilemma?," Annals of Public and Cooperative Economics, Wiley Blackwell, Wiley Blackwell, vol. 71(1), pages 55-78, 03.
- Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
- Yves Bourdet & Inga Persson, 1991.
"Politique de l'emploi et durée du chômage : une comparaison franco-suédoise,"
Revue de l'OFCE, Programme National Persée,
Programme National Persée, vol. 38(1), pages 65-92.
- Yves Bourdet & Inga Persson, 1991. "Politique de l'emploi et durée du chômage : une comparaison franco-suédoise," Revue de l'OFCE, Presses de Sciences-Po, Presses de Sciences-Po, vol. 0(4), pages 65-92.
- Desjardins, Richard & Warnke, Arne Jonas, 2012.
"Ageing and Skills: A Review and Analysis of Skill Gain and Skill Loss Over the Lifespan and Over Time,"
57089, ZBW - German National Library of Economics.
- Richard Desjardins & Arne Jonas Warnke, 2012. "Ageing and Skills: A Review and Analysis of Skill Gain and Skill Loss Over the Lifespan and Over Time," OECD Education Working Papers 72, OECD Publishing.
- BÃ¶heim, RenÃ© & Taylor, Mark P., 2000.
"The search for success: do the unemployed find stable employment?,"
ISER Working Paper Series
2000-05, Institute for Social and Economic Research.
- Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, Elsevier, vol. 9(6), pages 717-735, December.
- Yves Bourdet & Inga Persson, 1991. "Chômage des jeunes et fonctionnement du marché du travail : les cas français et suédois," Économie et Statistique, Programme National Persée, Programme National Persée, vol. 249(1), pages 39-51.
- Flaig, Gebhard & Licht, Georg & Steiner, Viktor, 1993. "Testing for state dependence effects in a dynamic model of male unemployment behaviour," ZEW Discussion Papers, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research 93-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- John C. Boik, 2014. "First Microsimulation Model of a LEDDA Community Currency--Dollar Economy," Working Paper, Principled Societies Project 0001, Principled Societies Project, revised Aug 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.