Transitions Out of Unemployment: the Role of Social Networks' Topology and Firms' recruitment Strategies
AbstractIn this paper we adopt the probabilistic framework of Calv´o-Armengol and Jackson (2004) to study the effects of job contact networks on outof- unemployment transitions. In particular we evaluate the role of di erent network topologies vis-a-vis state-dependent probabilities of receiving information on vacancies, which we relate to different firms’recruitment strategies. We find that social connections produce sizable increases in upward mobility from unemployment and, in general,symmetric network topologies perform better than asymmetric ones. In addition, and most interestingly, these results strongly depends on the di erent hypotheses on the firms’ hiring process strategy. Furthermore, in scale-free networks the probability of transitions out of unemployment increases in the exponent of the power-law degree distribution, but its value is much lower than what obtainable in Poisson random networks.
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Bibliographic InfoPaper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2009/80.
Date of creation: 20 Apr 2009
Date of revision:
job contact networks; complex networks; network symmetry; transitions out of unemployment; firms’ recruitment strategies.;
Other versions of this item:
- Andrea Mario Lavezzi & Nicola Meccheri, 2011. "Transitions Out Of Unemployment: The Role Of Social Networks' Topology And Firms' Recruitment Strategies," Metroeconomica, Wiley Blackwell, vol. 62(1), pages 24-52, 02.
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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