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Network social capital and labour market outcomes Evidence from Ireland

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  • Brady, Gerard
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    Abstract

    Using data from the International Social Survey Programme 2008 this paper tests empirically the effects of network social capital on Irish employment outcomes, while controlling for possible endogeneity. We allow the effects of social networks to vary for different groups and across different localities. We also test the hypothesis that network social capital works as a complement to human capital in the labour market, rather than as a substitute. We find that social participation and employment are not endogenous and that ‘weak ties’ matter for employment outcomes, whereas ‘strong ties’ are less important. The effects, however, vary across age and location. We also find that social and human capital may be substitutes rather than complements when it comes to the labour market. These findings are discussed with relevance and examples for policy.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47391.

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    Date of creation: 30 May 2013
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    Handle: RePEc:pra:mprapa:47391

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    Keywords: Social Capital; Networks; Ireland; Employment; Labour market;

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    1. Antoni Calvó-Armengol & Yves Zenou, 2004. "Social Networks And Crime Decisions: The Role Of Social Structure In Facilitating Delinquent Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 939-958, 08.
    2. Michael Bernabé Aguilera, 2002. "The Impact of Social Capital on Labor Force Participation: Evidence from the 2000 Social Capital Benchmark Survey," Social Science Quarterly, Southwestern Social Science Association, Southwestern Social Science Association, vol. 83(3), pages 853-874.
    3. Kevin Denny, 2003. "The effects of human capital on social capital: a cross-country analysis," IFS Working Papers, Institute for Fiscal Studies W03/16, Institute for Fiscal Studies.
    4. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    5. Kelly, Elish & O'Connell, Philip J. & Smyth, Emer, 2010. "The economic returns to field of study and competencies among higher education graduates in Ireland," Economics of Education Review, Elsevier, Elsevier, vol. 29(4), pages 650-657, August.
    6. Rowell, David & Connelly, Luke, 2010. "Labour market outcomes for people with a spinal cord injury," Economics & Human Biology, Elsevier, Elsevier, vol. 8(2), pages 223-232, July.
    7. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "Transitions to Long-Term Unemployment Risk Among Young People: Evidence from Ireland," Papers, Economic and Social Research Institute (ESRI) WP394, Economic and Social Research Institute (ESRI).
    8. Laura Greene Knapp & Terry Seaks, 1998. "A Hausman test for a dummy variable in probit," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 5(5), pages 321-323.
    9. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1407-18, December.
    10. John Considine & Frank Crowley & Sinead Foley & Marie O'Connor, 2008. "Irish National Lottery Sports Capital Grant Allocations, 1999-2007: Natural Experiments On Political Influence," Economic Affairs, Wiley Blackwell, Wiley Blackwell, vol. 28(3), pages 38-44, 09.
    11. Jackman, Richard & Layard, Richard, 1991. "Does Long-term Unemployment Reduce a Person's Chance of a Job? A Time-Series Test," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 58(229), pages 93-106, February.
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