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Job Tenure and Personal Contacts: Good Matches or Limited Choices?

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Author Info
Linda Datcher Loury

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Abstract

This paper contends that there is an alternative explanation of the positive relationship between using informal contacts and job tenure for some young men. Lower wages, wage growth, and expected job tenure may characterize those using contacts with little clout in the market. In such cases, the correlation between informal contacts and job tenure should not be interpreted as evidence of better match quality. Workers with poor quality personal contacts may rely on informal information sources only as a last resort when they are unable to find lucrative jobs through other means. Such workers would remain at their current jobs mainly because they have limited alternative choices rather than because of better match quality.

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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0417.

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Date of creation: 2004
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Handle: RePEc:tuf:tuftec:0417

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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.:
  1. Viscusi, W Kip, 1980. "A Theory of Job Shopping: A Bayesian Perspective," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 609-14, May. [Downloadable!] (restricted)
  2. Marmaros, David & Sacerdote, Bruce, 2002. "Peer and social networks in job search," European Economic Review, Elsevier, vol. 46(4-5), pages 870-879, May. [Downloadable!] (restricted)
  3. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
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  4. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University. [Downloadable!]
  5. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-30, July. [Downloadable!] (restricted)
  6. Galizzi, Monica & Lang, Kevin, 1998. "Relative Wages, Wage Growth, and Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 367-91, April. [Downloadable!] (restricted)
  7. Mortensen, Dale T. & Vishwanath, Tara, 1994. "Personal contacts and earnings : It is who you know!," Labour Economics, Elsevier, vol. 1(2), pages 187-201, March. [Downloadable!] (restricted)
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  8. Kristen Keith & Abagail McWilliams, 1995. "The wage effects of cumulative job mobility," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(1), pages 121-137, October.
  9. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May. [Downloadable!] (restricted)
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  10. Johnson, William R, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, MIT Press, vol. 92(2), pages 261-78, May. [Downloadable!] (restricted)
  11. Bronars, Stephen G & Famulari, Melissa, 1997. "Wage, Tenure, and Wage Growth Variation within and across Establishment," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 285-317, April. [Downloadable!] (restricted)
  12. Yannis M. Ioannides & Linda Datcher Loury, 2002. "Job Information Networks, Neighborhood Effects and Inequality," Discussion Papers Series, Department of Economics, Tufts University 0217, Department of Economics, Tufts University. [Downloadable!]
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  13. Farber, Henry S, 1994. "The Analysis of Interfirm Worker Mobility," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 554-93, October. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University. [Downloadable!]
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