IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/78628.html
   My bibliography  Save this paper

Using your ties to get a worse job? The differential effects of social networks on quality of employment: Evidence from Colombia

Author

Listed:
  • Deguilhem, Thibaud
  • Berrou, Jean-Philippe
  • Combarnous, François

Abstract

This article examines the effect of social networks through the use of family, friends or relatives ties on quality of employment (QoE). Drawing from the socioeconomic literature on social networks and labor market, we propose an original and multidimensional measure of QoE, and a fruitful estimation approach of the effect of social networks on QoE that allows to deal with complex inter-groups heterogeneity. Using the Great Integrated Houshold Survey (GIHS) and a sample on Bogota's workers in 2013, we find evidence proving that the use of ties has high negative effects on QoE index for those who are in the lower quality of employment range. Likewise, the use of social networks has very low negative effects on QoE index for individuals who are in the better quality of employment range. Complemented by focus groups interviews, these empirical results raise questions about the difference prevailing in relational practices between necessity networks for precarious workers and opportunity networks for protected workers.

Suggested Citation

  • Deguilhem, Thibaud & Berrou, Jean-Philippe & Combarnous, François, 2017. "Using your ties to get a worse job? The differential effects of social networks on quality of employment: Evidence from Colombia," MPRA Paper 78628, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:78628
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/78628/1/MPRA_paper_78628.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/85714/8/MPRA_paper_85714.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel S. Hamermesh & Elena Stancanelli, 2015. "Long Workweeks and Strange Hours," ILR Review, Cornell University, ILR School, vol. 68(5), pages 1007-1018, October.
    2. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    3. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-3593, December.
    4. Calvo-Armengol, Antoni & Zenou, Yves, 2005. "Job matching, social network and word-of-mouth communication," Journal of Urban Economics, Elsevier, vol. 57(3), pages 500-522, May.
    5. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    6. Fields, Gary S., 2011. "Labor market analysis for developing countries," Labour Economics, Elsevier, vol. 18(S1), pages 16-22.
    7. Kugler, Adriana D., 2003. "Employee referrals and efficiency wages," Labour Economics, Elsevier, vol. 10(5), pages 531-556, October.
    8. Francis Kramarz & Oskar Nordström Skans, 2014. "When Strong Ties are Strong: Networks and Youth Labour Market Entry," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1164-1200.
    9. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-01447842, HAL.
    10. Matthew O. Jackson, 2014. "Networks in the Understanding of Economic Behaviors," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 3-22, Fall.
    11. Deb Partha & Trivedi Pravin K., 2013. "Finite Mixture for Panels with Fixed Effects," Journal of Econometric Methods, De Gruyter, vol. 2(1), pages 35-51, July.
    12. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    13. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    14. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-03572533, HAL.
    15. Deb, Partha & Gallo, William T. & Ayyagari, Padmaja & Fletcher, Jason M. & Sindelar, Jody L., 2011. "The effect of job loss on overweight and drinking," Journal of Health Economics, Elsevier, vol. 30(2), pages 317-327, March.
    16. François Combarnous & Thibaud Deguilhem, 2019. "Urban labour market revisited: Why quality of employment matters in Bogota [Une approche novatrice du marché du travail urbain de Bogota : le prisme de la qualité de l’emploi]," Post-Print halshs-02283487, HAL.
    17. José Antonio OCAMPO & Kirsten SEHNBRUCH, 2015. "Introduction: Quality of employment in Latin America," International Labour Review, International Labour Organization, vol. 154(2), pages 165-170, June.
    18. Sylvia Frühwirth‐Schnatter & Christoph Pamminger & Andrea Weber & Rudolf Winter‐Ebmer, 2012. "Labor market entry and earnings dynamics: Bayesian inference using mixtures‐of‐experts Markov chain clustering," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(7), pages 1116-1137, November.
    19. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    20. Chi Huu Nguyen & Christophe J. Nordman, 2018. "Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 54(4), pages 594-618, April.
    21. Antoninis, Manos, 2006. "The wage effects from the use of personal contacts as hiring channels," Journal of Economic Behavior & Organization, Elsevier, vol. 59(1), pages 133-146, January.
    22. Zhang, Yanlong & Zhou, Xiaoyu & Lei, Wei, 2017. "Social Capital and Its Contingent Value in Poverty Reduction: Evidence from Western China," World Development, Elsevier, vol. 93(C), pages 350-361.
    23. Jean-Philippe Berrou & François Combarnous, 2012. "The Personal Networks of Entrepreneurs in an Informal African Urban Economy: Does the ‘Strength of Ties’ Matter?," Review of Social Economy, Taylor & Francis Journals, vol. 70(1), pages 1-30, July.
    24. Lori Beaman & Niall Keleher & Jeremy Magruder, 2018. "Do Job Networks Disadvantage Women? Evidence from a Recruitment Experiment in Malawi," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 121-157.
    25. Jeremy R. Magruder, 2010. "Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 62-85, January.
    26. Alejandro Hoyos & Hugo Ñopo & Ximena Peña, 2010. "The Persistent Gender Earnings Gap in Colombia, 1994-2006," Documentos CEDE 7094, Universidad de los Andes, Facultad de Economía, CEDE.
    27. Crona, Beatrice & Gelcich, Stefan & Bodin, Örjan, 2017. "The Importance of Interplay Between Leadership and Social Capital in Shaping Outcomes of Rights-Based Fisheries Governance," World Development, Elsevier, vol. 91(C), pages 70-83.
    28. repec:dau:papers:123456789/7080 is not listed on IDEAS
    29. Christophe J. Nordman & François-Charles Wolff, 2009. "Is There a Glass Ceiling in Morocco? Evidence from Matched Worker--Firm Data," Journal of African Economies, Centre for the Study of African Economies, vol. 18(4), pages 592-633, August.
    30. Gerard Brady, 2015. "Network Social Capital and Labour Market Outcomes: Evidence For Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 163-195.
    31. Conway, Karen Smith & Deb, Partha, 2005. "Is prenatal care really ineffective? Or, is the 'devil' in the distribution?," Journal of Health Economics, Elsevier, vol. 24(3), pages 489-513, May.
    32. Calvo-Armengol, Antoni & Jackson, Matthew O., 2007. "Networks in labor markets: Wage and employment dynamics and inequality," Journal of Economic Theory, Elsevier, vol. 132(1), pages 27-46, January.
    33. COMBARNOUS François & DEGUILHEM Thibaud, 2016. "Urban labor market revisited: Why quality of employment matters in Bogota (In French)," Cahiers du GREThA 2016-02, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).
    34. Samuel Bentolila & Claudio Michelacci & Javier Suarez, 2010. "Social Contacts and Occupational Choice," Economica, London School of Economics and Political Science, vol. 77(305), pages 20-45, January.
    35. Marcel Fafchamps, 2006. "Development and social capital," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1180-1198.
    36. Nordman, Christophe J. & Pasquier-Doumer, Laure, 2015. "Transitions in a West African labour market: The role of family networks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 74-85.
    37. Mano, Yukichi & Yamano, Takashi & Suzuki, Aya & Matsumoto, Tomoya, 2011. "Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia," World Development, Elsevier, vol. 39(10), pages 1760-1770.
    38. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    39. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    40. Mélika Salem & Isabelle Bensidoun, 2012. "The heterogeneity of informal employment and segmentation in the Turkish labour market," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(4), pages 578-592.
    41. Bramoulle, Yann & Galeotti, Andrea & Rogers, Brian (ed.), 2016. "The Oxford Handbook of the Economics of Networks," OUP Catalogue, Oxford University Press, number 9780199948277.
    42. Joseph RAMOS & Kirsten SEHNBRUCH & Jürgen WELLER, 2015. "Quality of employment in Latin America: Theory and evidence," International Labour Review, International Labour Organization, vol. 154(2), pages 171-194, June.
    43. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    44. Bramoullé, Yann & Saint-Paul, Gilles, 2010. "Social networks and labor market transitions," Labour Economics, Elsevier, vol. 17(1), pages 188-195, January.
    45. Maria Sagrario Floro & John Messier, 2011. "Is there a link between quality of employment and indebtedness? the case of urban low-income households in Ecuador," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(3), pages 499-526.
    46. Günther, Isabel & Launov, Andrey, 2012. "Informal employment in developing countries," Journal of Development Economics, Elsevier, vol. 97(1), pages 88-98.
    47. Brendan Burchell & Kirsten Sehnbruch & Agnieszka Piasna & Nurjk Agloni, 2014. "The quality of employment and decent work: definitions, methodologies, and ongoing debates," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 459-477.
    48. Jean-Philippe Berrou & François Combarnous, 2011. "Testing Lin's Social Capital Theory in an Informal African Urban Economy," Journal of Development Studies, Taylor & Francis Journals, vol. 47(8), pages 1216-1240, June.
    49. repec:dau:papers:123456789/4344 is not listed on IDEAS
    50. repec:dau:papers:123456789/15034 is not listed on IDEAS
    51. Laure Pasquier-Doumer, 2013. "Intergenerational Transmission of Self-Employed Status in the Informal Sector: A Constrained Choice or Better Income Prospects? Evidence from Seven West African Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 22(1), pages 73-111, January.
    52. Eduardo Marques, 2012. "Social Networks, Segregation and Poverty in São Paulo," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(5), pages 958-979, September.
    53. Jean-Philippe Berrou & François Combarnous, 2011. "Testing Lin's Social Capital Theory in an Informal African Urban Economy," Journal of Development Studies, Taylor & Francis Journals, vol. 47(8), pages 1216-1240, June.
    54. repec:dau:papers:123456789/4294 is not listed on IDEAS
    55. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
    56. Laure Pasquier-Doumer, 2013. "Intergenerational Transmission of Self-Employed Status in the Informal Sector: A Constrained Choice or Better Income Prospects? Evidence from seven West-African Countries," Post-Print hal-01651028, HAL.
    57. Mélika Ben Salem & Isabelle Bensidoun, 2012. "The heterogeneity of informal employment and segmentation in the Turkish labour market," Post-Print halshs-01118561, HAL.
    58. Natalia Radchenko, 2017. "Informal Employment in Developing Economies: Multiple Heterogeneity," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 495-513, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. María Alejandra González Arenas, 2019. "Diferencias en la calidad del empleo público en Colombia: una comparación entre empleados de planta y contratistas," Documentos de trabajo 17567, Escuela de Gobierno - Universidad de los Andes.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thibaud Deguilhem & Jean-Philippe Berrou & François Combarnous, 2019. "Using your ties to get a worse job? The differential effects of social networks on quality of employment in Colombia," Review of Social Economy, Taylor & Francis Journals, vol. 77(4), pages 493-522, October.
    2. Nordman, Christophe J. & Pasquier-Doumer, Laure, 2015. "Transitions in a West African labour market: The role of family networks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 74-85.
    3. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    4. Nicoletta Berardi, 2013. "Social networks and wages in Senegal’s labor market," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    5. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2016. "Networks: An Economic Perspective," Papers 1608.07901, arXiv.org.
    6. Dariel, Aurelie & Riedl, Arno & Siegenthaler, Simon, 2021. "Referral hiring and wage formation in a market with adverse selection," Games and Economic Behavior, Elsevier, vol. 130(C), pages 109-130.
    7. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    8. Horváth, Gergely, 2014. "Occupational mismatch and social networks," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 442-468.
    9. Fontaine, François, 2008. "Why are similar workers paid differently? the role of social networks," Journal of Economic Dynamics and Control, Elsevier, vol. 32(12), pages 3960-3977, December.
    10. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    11. María Paz Espinosa & Jaromír Kovárík & Sofía Ruíz-Palazuelos, 2021. "Are close-knit networks good for employment?," Working Papers 21.06, Universidad Pablo de Olavide, Department of Economics.
    12. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    13. Lena Hensvik & Oskar Nordström Skans, 2016. "Social Networks, Employee Selection, and Labor Market Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 825-867.
    14. Buhai, I. Sebastian & van der Leij, Marco J., 2023. "A Social Network Analysis of Occupational Segregation," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    15. Andrea Morescalchi, 2021. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 223-272, May.
    16. Björn Nilsson, 2019. "The School-to-Work Transition in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 745-764, May.
    17. Michele Mosca & Francesco Pastore, 2009. "Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector," AIEL Series in Labour Economics, in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 8, pages 115-141, AIEL - Associazione Italiana Economisti del Lavoro.
    18. Dariel, Aurelie & Riedl, Arno & Siegenthaler, Simon, 2019. "Hiring Through Referrals in a Labor Market with Adverse Selection," Research Memorandum 009, Maastricht University, Graduate School of Business and Economics (GSBE).
    19. Christian Dustmann & Albrecht Glitz & Uta Schönberg & Herbert Brücker, 2016. "Referral-based Job Search Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(2), pages 514-546.
    20. Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2015. "With a little help from my friends? Quality of social networks, job finding and job match quality," European Economic Review, Elsevier, vol. 78(C), pages 55-75.

    More about this item

    Keywords

    Social networks; Quality of employment; Finite Mixture Regression Model; Colombia;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:78628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.