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Transitions Out Of Unemployment: The Role Of Social Networks' Topology And Firms' Recruitment Strategies

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  • Andrea Mario Lavezzi
  • Nicola Meccheri

Abstract

In 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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Suggested Citation

  • 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, February.
    • Handle: RePEc:bla:metroe:v:62:y:2011:i:1:p:24-52
    DOI: j.1467-999X.2009.04085.x
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    2. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Manuela Gussoni & Andrea Mangani, 2012. "The Impact of Public Funding for Innovation on Firms' R&D Investments: Do R&D Cooperation and Appropriability Matter?," L'industria, Società editrice il Mulino, issue 2, pages 237-254.
    4. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • 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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