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Social Networks and Labor Market Transitions

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Author Info
Bramoullé,Yann (LEERNA, Université Toulouse I)
Saint-Paul, Gilles () (IDEI, GREMAQ, LEERNA, Université Toulouse I, CEPR and IZA Bonn)

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Abstract

We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1215.

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Length: 38 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1215

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Related research
Keywords: social networks; unemployment duration; labor market transitions; social capital; economic inbreeding;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. Cingano, Federico & Rosolia, Alfonso, 2008. "People I Know: Job Search and Social Networks," CEPR Discussion Papers 6818, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Sebastian Buhai & Marco van der Leij, 2006. "A Social Network Analysis of Occupational Segregation," Tinbergen Institute Discussion Papers 06-016/1, Tinbergen Institute, revised 08 Nov 2006. [Downloadable!]
    Other versions:
  3. Federico Cingano & Alfonso Rosolia, 2006. "People I Know: Workplace Networks and Job Search Outcomes," Temi di discussione (Economic working papers) 600, Bank of Italy, Economic Research Department. [Downloadable!]
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This page was last updated on 2009-12-14.


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